The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct the Central Bank of Nigeria (CBN) to suspend the recent increase in Automated Teller Machine (ATM) withdrawal charges, pending the outcome of a lawsuit challenging its legality.
In an open letter dated March 1, 2025, and signed by its Deputy Director, Kolawole Oluwadare, SERAP warned that proceeding with the fee hike while the case is still in court would undermine the judicial process and erode public trust in the rule of law.
“Directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit,” SERAP stated. “It would also be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office, and oft-repeated promises to uphold the rule of law.”
The advocacy group emphasized that enforcing the new charges despite an ongoing court case would amount to “self-help” and set a dangerous precedent where government institutions disregard legal proceedings.
SERAP’s Legal Battle Against CBN’s Policy
SERAP had filed a lawsuit against the CBN at the Federal High Court in Lagos in February 2025, challenging what it described as an “unlawful, unfair, and unjust increase” in ATM withdrawal charges.
Under the new policy, ATM withdrawals made outside a bank’s premises attract a N100 fee per N20,000 withdrawn. Additionally, standalone cash points, such as those at shopping centers and airports, now carry a N100 charge plus a surcharge of up to N500.
The lawsuit, numbered FHC/L/CS/344/2025, questions whether the CBN’s decision to increase these fees violates the Federal Competition and Consumer Protection Act of 2018. SERAP contends that the policy disproportionately affects Nigerians struggling with economic hardship.
CBN Must Uphold the Rule of Law, Says SERAP
SERAP insists that the CBN, having been served court papers on February 26, 2025, is legally bound to halt any actions that could affect the pending legal proceedings.
“The CBN has the duty to maintain the status quo as of February 26, 2025, when the court processes were duly served on it,” the letter reads. “The bank cannot resort to self-help.”
The group cautioned that allowing the CBN to enforce the new ATM charges while the court is yet to rule could weaken the judiciary’s authority and encourage other government agencies to ignore legal processes.
“Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending a strong signal that they are not being used as mere subterfuge to tie the hands of one party while the other helps himself extra-judicially,” SERAP added.
The letter further warned that implementing the fee hike while the lawsuit is pending could create a precedent where ministries, departments, and agencies (MDAs) disregard court rulings and operate without accountability.
SERAP urged President Tinubu to act swiftly by instructing the CBN to suspend the implementation of the fee hike until the court delivers a verdict.
“It is in the public interest to keep the streams of justice clear and pure and to maintain the authority and integrity of the court in the case,” the group stated.
The organization also called on the judiciary to ensure a fair and expedited hearing of the lawsuit to prevent prolonged delays that could further burden consumers.
Reaffirming its commitment to consumer rights and financial accountability, SERAP vowed to continue challenging policies that negatively impact Nigerians through legal means.
