The Central Bank of Nigeria (CBN) has been taken to court by the Socio-Economic Rights and Accountability Project (SERAP) over the recent increase in Automated Teller Machine (ATM) transaction fees.
SERAP filed the lawsuit at the Federal High Court in Lagos, challenging the CBN’s decision to impose additional charges on ATM withdrawals outside bank premises. Under the new policy, a N100 charge applies for every N20,000 withdrawn from non-branch ATMs, while withdrawals at shopping centres, airports, and standalone cash points attract an extra surcharge of up to N500 per transaction.
Legal Challenge Against CBN
In the suit, numbered FHC/L/CS/344/2025, SERAP argues that the new charges are “arbitrary, unfair, unreasonable, and contrary to the Federal Competition and Consumer Protection Act 2018.” The organisation is seeking a court declaration that the fee hike violates sections of the law that protect consumers from exploitative practices.
SERAP is also requesting an interim injunction to stop the CBN from enforcing the new charges until the court decides on the matter.
“The increase in ATM fees creates a two-tiered financial system that discriminates against poor Nigerians who cannot afford these excessive charges,” SERAP stated in its court filing.
Impact on Consumers
The organisation warned that the policy would worsen financial hardship for Nigerians, especially at a time when commercial banks are posting record profits.
“CBN policies should not favour banks at the expense of consumers. The burden of additional fees should be borne by wealthy financial institutions, not ordinary Nigerians,” SERAP argued.
The lawsuit also cites provisions of the Federal Competition and Consumer Protection Act, which prohibits unfair pricing and abusive market dominance. SERAP contends that the CBN, as a financial regulator, must comply with these laws.
Reliefs Sought
SERAP is asking the court to:
Declare the increase in ATM fees arbitrary, unfair, and unjust.
Set aside the CBN’s circular announcing the fee hike.
Restrain the CBN and financial institutions from implementing the new charges.
Awaiting Court Decision
No date has been fixed for the hearing of the suit. Meanwhile, Nigerians continue to express concern over rising banking costs amid economic challenges.