SERAP files a lawsuit against the CBN over an allegedly unconstitutional ATM fee hike, challenging the new charges as unfair and discriminatory. Read more about the case and its implications for Nigerian consumers.
The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Central Bank of Nigeria (CBN) over what it describes as a “patently unlawful, unfair, unreasonable and unjust” increase in ATM transaction fees. Filed at the Federal High Court in Lagos under suit number FHC/L/CS/344/2025, the lawsuit challenges the recent fee hikes imposed by the CBN that critics argue disproportionately impact Nigeria’s most vulnerable citizens.
According to the lawsuit, the CBN’s revised fee structure now mandates that ATM withdrawals made at machines located outside a bank’s branch premises will incur a charge of N100 per N20,000 withdrawn. Withdrawals at locations such as shopping centres, airports, and standalone cash points face an additional surcharge of up to N500 per N20,000. SERAP contends that these increases are arbitrary and in breach of multiple legal provisions, notably sections 1(c) and (d), 104, 105, and 127(1) of the Federal Competition and Consumer Protection Act 2018.
SERAP’s central arguments include:
- Violation of Consumer Rights: The fee hike is claimed to be in direct conflict with the Nigerian Constitution, the CBN Act, and international human rights obligations. SERAP argues that such policies contribute to a discriminatory two-tiered financial system that adversely affects economically disadvantaged Nigerians.
- Unjust Financial Burden: By imposing these fees on everyday banking transactions, the CBN is accused of shifting the financial burden onto the general public rather than on the profitable banks and their shareholders.
- Non-compliance with Statutory Provisions: The lawsuit asserts that the CBN’s actions violate the Federal Competition and Consumer Protection Act 2018, which explicitly aims to protect consumers from unfair business practices and abuse of dominant market positions.
In its suit, SERAP’s legal representatives, Kolawole Oluwadare and Andrew Nwankwo, are seeking several key judicial declarations and orders:
- Declaratory Relief: A formal declaration that the CBN’s decision to increase ATM fees is arbitrary, unjust, and in violation of the relevant provisions of the Federal Competition and Consumer Protection Act.
- Interim Injunction: An immediate court order restraining the CBN, its agents, and affiliated financial institutions from enforcing the new fee structure pending the full hearing of the case.
- Policy Reversal: An order setting aside the CBN circular dated February 10, 2025, which directed banks to implement the fee hike, asserting that such actions should be subject to review and oversight by the Federal Competition and Consumer Protection Commission (FCCPC).
SERAP’s complaint further emphasizes that “the CBN is compromising its stated mission to advance the management of the country’s economy and sustainable development,” noting that these policy changes directly conflict with the principles of fairness and consumer protection enshrined in Nigerian law.
Implications for Nigeria’s Banking Sector and Consumers
The outcome of this lawsuit could have far-reaching implications for both Nigeria’s financial regulatory framework and its consumer base. If successful, SERAP’s action may not only force a rollback of the ATM fee increase but could also set a legal precedent ensuring that future decisions by the CBN adhere strictly to statutory and constitutional requirements. Critics warn that continued enforcement of such fees would exacerbate economic inequality by imposing additional financial strain on the country’s poorer citizens—at a time when Nigerian banks report substantial profits.
This legal challenge comes amid growing public discontent over rising financial charges in Nigeria. Stay tuned for further updates as the case proceeds to hearings, with industry experts and consumer rights advocates closely monitoring the potential impact on Nigeria’s banking sector and broader
economic policy.
Related: https://symfoninews.com/cbn-removes-free-withdrawals-for-non-customer-transactions-at-atm/
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