SERAP Urges President Tinubu to Halt ATM Fee Increase Amid Legal Challenge
SERAP calls on President Bola Tinubu to suspend the recent ATM fee hike by the CBN until a court ruling is issued. The new fees, applicable to withdrawals from other banks’ ATMs, have drawn significant criticism for complicating financial access amid ongoing economic difficulties. SERAP’s lawsuit highlights the impact on citizens’ rights and advocates for accountability in financial governance.
The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to instruct the Central Bank of Nigeria (CBN) to immediately suspend the recent increase in automated teller machine (ATM) withdrawal fees, pending the outcome of a court decision on the issue. In a statement shared via social media platform X (formerly Twitter), SERAP emphasized that this request aligns with the 1999 Nigerian Constitution and the President’s obligations to uphold the rule of law.
The CBN’s recent approval of the fee hike has raised concerns regarding its implications for financial inclusion in Nigeria. The new policy imposes higher charges on bank customers for cash withdrawals at ATMs of other banks, prompting significant backlash from consumer advocacy groups and civil society organizations who argue it could limit access to essential banking services.
SERAP, an organization committed to promoting transparency and accountability, has filed a lawsuit against the CBN regarding the fee increase, citing violations of Nigerians’ economic rights and the additional financial strain imposed on citizens already facing hardships. SERAP asserts that it is President Tinubu’s constitutional responsibility to safeguard the welfare of the populace by preventing what it terms an unjust financial policy.
The organization highlights that the fee increase arrives at a troubling time when Nigerians are grappling with high inflation rates and rising living costs. Social media has seen numerous citizens express their dissatisfaction with a policy they view as unjust, which may further impede their access to cash and financial resources.
Financial analysts have voiced critiques of the CBN’s decision, noting that it counters current initiatives aimed at promoting cashless transactions and enhancing banking accessibility. They caution that elevated transaction costs could compel Nigerians to turn to informal financial systems, thereby undermining the efficacy of the country’s monetary policies.
SERAP had previously filed a lawsuit with suit number FHC/L/CS/344/2025 at the Federal High Court in Lagos, aiming to halt the implementation of the newly approved ATM transaction fees. This legal action, initiated last Friday, is a significant step toward contesting the CBN’s policy.
The CBN announced the revisions on February 11, 2025, stating that the updated fees would take effect on March 1, 2025. The apex bank justified the revisions as a necessary response to increasing operational costs, noting that the last modification to the fees occurred in 2019, when withdrawal charges were lowered from N65 to N35.
Under the proposed fee structure, customers withdrawing cash from their respective banks’ ATMs will continue to enjoy free transactions. However, a charge of N100 will apply for withdrawals of N20,000 at on-site ATMs, while those utilizing ATMs belonging to different banks will incur a fee of N100 plus a potential surcharge of N450 per N20,000 withdrawal at off-site locations.
In summary, SERAP has called on President Tinubu to intervene and suspend the CBN’s recent ATM fee increase until a court ruling is made. The policy has been met with widespread criticism for potentially hindering financial access amidst existing economic challenges. SERAP’s lawsuit underscores the importance of protecting citizens’ economic rights and demonstrates the need for government accountability in financial regulations.
Original Source: nairametrics.com
