The Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct the Central Bank of Nigeria (CBN) to suspend its recent increase in Automated Teller Machine (ATM) transaction fees.
The advocacy group insists that the new charges should be put on hold pending the resolution of an ongoing lawsuit challenging their legality.
In an open letter dated March 1, 2025, and signed by its deputy director, Kolawole Oluwadare, SERAP said that allowing the CBN to proceed with the hike while the matter is in court would undermine the judicial process and the rule of law.
The organisation said, “Directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit.”
“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.
“Implementing the ATM fee hike while the lawsuit on the matter is pending before the Federal High Court would make a mockery of the judicial process and the rule of law.”
“The CBN is bound to suspend the increase in ATM transaction fees, and await the outcome of the lawsuit.”
The organization urged Tinubu to seek legal counsel from the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, to determine whether the CBN is legally obligated to suspend the implementation until the court delivers a verdict.
Legal Battle Over Atm Fees
SERAP had in February 2025 filed a lawsuit at the Federal High Court in Lagos against the CBN over its refusal to reverse what the organization described as an “unlawful, unfair, and unjust increase” in ATM withdrawal charges.
The CBN’s new policy mandates that withdrawals made from ATMs outside a bank’s branch premises attract a N100 charge per N20,000 withdrawn.
Also, ATM withdrawals at standalone cash points, such as those at shopping centers and airports, now incur a N100 fee 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 is in violation of the Federal Competition and Consumer Protection Act of 2018. SERAP argues that the policy is arbitrary and unfair and places an undue financial burden on Nigerians already grappling with economic hardship.
CBN’s Duty to Uphold the Rule of Law
SERAP maintains that the CBN, having been formally served court papers on February 26, 2025, must refrain from taking any actions that could affect the pending legal proceedings. The group insists that proceeding with the fee hike despite ongoing litigation would amount to self-help and undermine the integrity of Nigeria’s judicial system.
The organization also warned that if the CBN is allowed to enforce the new ATM charges while the court is yet to rule, it could set a dangerous precedent where government agencies disregard legal processes and impose policies that harm the public.
SERAP highlighted the risk of eroding public confidence in the judiciary should the CBN proceed with its policy despite a pending lawsuit. It warned that the situation could encourage other government agencies to disregard court proceedings and operate without accountability.
The letter read in part: “The CBN has the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do not make nonsense of the rule of law or the Court.”
“The CBN has the duty to maintain the status quo as of February 26, 2025, when the court processes were duly served on it, and during the pendency of the lawsuit filed by SERAP on the ATM fee hike before the Federal High Court, Lagos.”
“Once the CBN has been duly served with the court processes on the ATM fee hike, the bank cannot resort to self-help.”
“The CBN is not permitted to do or take any action or omission that would overreach the public interest or foist a situation of complete helplessness or ‘fait accompli’ on the Federal High Court.”
“Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending 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.”
“Implementing the increase in ATM transaction fees while the duly served and acknowledged interlocutory application and the substantive lawsuit on the matter are pending before the court would pose a direct threat to the integrity of the country’s judicial system and the rule of law.”
“The credibility and relevance of the judicial system risk being undermined, potentially encouraging other ministries, departments and agencies [MDAs] to adopt dismissive attitudes toward pending cases in court.”
“The CBN ought to uphold its general duty to act in good faith, and to refrain from taking any action that may undermine the integrity of the country’s judicial process by immediately suspending the implementation of the increase in ATM transaction fees pending the hearing and determination of the lawsuit on the matter.”
“We would be grateful if the recommended measures are taken urgently to ensure respect for the integrity of the judicial process and the rule of law.”
“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.”
“SERAP had on 21 February 2025 filed the lawsuit with number FHC/L/CS/344/2025 against the CBN over the failure to reverse the patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees.”
“The court processes were duly served on 26 February 2025 on the CBN in Abuja. The CBN has acknowledged receipt of the processes.”
“In the lawsuit filed at the Federal High Court, Lagos, SERAP is asking the court to determine ‘whether the decision by the CBN to increase ATM transaction fees is not arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.’”
“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.”
“SERAP notes that since assumption of office in May 2023, you have repeatedly promised, including in your inaugural speech, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.’”
“Protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society. The only way in which SERAP can have a fair and effective access to justice in this matter is to allow the court to decide, one way or the other, on the merits of the case before it.”
“The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them on the basis of facts and in accordance with the law, without any improper interference, direct or indirect.”
“Section 8(1) of Central Bank of Nigeria Act provides that, ‘The Governor and Deputy-Governors shall be persons of recognized financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment.”
“Section 6(1) of the Nigerian Constitution 1999 [as amended] provides that ‘judicial powers of the Federation shall be vested in the courts to which this section relates, being courts established for the Federation.”
“Section 6 provides that ‘the judicial powers vested in accordance with the foregoing provisions of this section –(a) shall extend, notwithstanding anything to the contrary in this constitution, to all inherent powers and sanctions of a court of law.”
“The provisions also provide: ‘(b) the judicial powers shall extend to all matters between persons, or between government or authority and to any person in Nigeria, and to all actions and proceedings relating thereto, for the determination of any question as to the civil rights and obligations of that person.”
SERAP urged Tinubu to act swiftly by directing the CBN to suspend the policy until the lawsuit is resolved.
The group argued that doing so would be in line with Tinubu’s constitutional duty to uphold the rule of law, as well as his repeated promises to govern impartially.
It also called on the judiciary to ensure a fair and expedited hearing of the lawsuit to prevent unnecessary delays that could further burden consumers.
SERAP reaffirmed its commitment to protecting consumer rights and promoting accountability in Nigeria’s financial sector, stating that it would continue to pursue legal measures to challenge policies that negatively impact Nigerians.
