SERAP has demanded that the Central Bank of Nigeria withdraw its new ATM transaction fees within 48 hours, calling them “unlawful” and detrimental to low-income earners. The increased charges, effective March 1, 2025, have drawn criticism for worsening economic inequality. If these charges are not rescinded, SERAP threatens legal action, emphasizing that such fees contradict Nigerian laws and international human rights commitments.
The Socio-Economic Rights and Accountability Project (SERAP) has given the Central Bank of Nigeria (CBN) a 48-hour deadline to retract its recent increase in Automated Teller Machine (ATM) transaction fees. In a letter to CBN Governor Olayemi Cardoso, dated February 15, 2025, SERAP described the fee hike as “unlawful, unfair, unreasonable, and unjust,” urging the bank to reconsider its decision to alleviate financial pressures on Nigerians.
SERAP highlighted that the newly introduced fees, which will take effect on March 1, 2025, could worsen economic hardship for low-income earners. The CBN’s statement explains that this fee increase—N100 per N20,000 for withdrawals outside bank branches, along with an added surcharge of up to N500 at shopping centers and standalone ATMs—aims to improve ATM accessibility across Nigeria.
According to SERAP Deputy Director Kolawole Oluwadare, this policy primarily burdens the general public while benefiting banks. He emphasizes that wealthy financial institutions should absorb these costs rather than shifting them onto struggling citizens: “The increase in ATM transaction fees ought to have been absorbed by wealthy banks and their shareholders, not imposed on the general public.”
SERAP argues that the fee hike violates the Nigerian Constitution and international human rights standards. They believe such policies exacerbate existing economic inequality and create disparities in access to financial services, leading to a divided financial system disadvantaging lower-income groups.
The organization called upon the CBN to fulfill its mandate of fostering economic opportunities for all Nigerians instead of imposing fees that deepen financial struggles. SERAP stated, “At a time when banks are declaring trillions of naira in profits annually, this increase is manifestly unfair, unreasonable, and unjust.”
Furthermore, SERAP referenced the United Nations Guiding Principles on Business and Human Rights, insisting that the CBN engage in human rights due diligence to prevent harmful economic policies. They warned that if the CBN does not annul the new fees within the specified 48 hours, they will initiate legal actions to ensure compliance.
SERAP’s ultimatum to Nigeria’s Central Bank highlights the potential negative impact of the recent ATM fee increase on low-income citizens. The organization’s argument stresses the need for fairness in financial policies and the importance of protecting human rights within the banking sector. Failure to reverse the policy may result in legal consequences for the CBN, signifying a critical back-and-forth in Nigeria’s socio-economic landscape.
Original Source: saharareporters.com
