Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has been urged to reverse the unlawful hike in Automated Teller Machine (ATM) transaction fees with immediate effect.
In an open letter dated 15 February 2025 and signed by the organisation’s deputy director, Kolawole Oluwadare, the Socio-Economic Rights and Accountability Project (SERAP) described the decision as an unlawful, unfair, unreasonable, and unjust increase, warning that the hike will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country.
SERAP urged Cardoso to “ensure that the exercise of CBN’s statutory powers and functions does not inflict misery on poor Nigerians and contribute to human rights abuses.”
The body pointed out that the increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public, adding that the increase only benefits the CBN and commercial banks at the expense of poor Nigerians.
“CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits, mostly at the expense of their customers. The increase in ATM transaction fees would inflict misery on poor Nigerians and contribute to human rights abuses,” the letter reads.
SERAP also maintained that such a hike in ATM transaction fees is entirely inconsistent with the oft-expressed commitment by the government of President Bola Tinubu to address the growing poverty across the country.
“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.”
“The exorbitant and unlawful increase in ATM transaction fees at a time when the country is facing economic and financial crises would contribute further to the impoverishment of the population,” SERAP said.
The CBN recently announced that ATM withdrawals made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn.
ATM withdrawals at shopping centres, airports, or standalone cash points will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal. Banks are advised to apply the increased ATM fees effective from March 1, 2025.