The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal proceedings against the Central Bank of Nigeria (CBN) over what it describes as a patently unlawful, unfair, unreasonable, and unjust increase in Automated Teller Machine (ATM) transaction fees.
The suit, numbered FHC/L/CS/344/2025 and filed last Friday at the Federal High Court in Lagos, seeks a judicial declaration that the CBN’s decision to raise ATM fees violates several provisions of the Federal Competition and Consumer Protection Act 2018.
Under the new policy announced by the CBN, ATM withdrawals made at machines located outside a bank’s branch premises will incur a charge of N100 per N20,000 withdrawn, while withdrawals from shopping centers, airports, or standalone cash points will attract a N100 fee plus an additional surcharge of up to N500 per N20,000. SERAP contends that this increase, imposed through a circular dated February 10, 2025 (reference number FPR/DIR/GEN/CIR/001/002), is arbitrary and unfair.
Specifically, SERAP argues that the fee hike breaches sections 1(c) and (d), 104, 105, and 127(1) of the Federal Competition and Consumer Protection Act 2018, which are binding on the CBN.
The legal action calls on the court to declare that the unilateral increase in ATM transaction fees is arbitrary, unfair, unreasonable, and unjust, and in violation of Nigeria’s Constitution 1999 [as amended], the CBN Act, the Federal Competition and Consumer Protection Act, and the nation’s international human rights obligations.
SERAP further argues that the fee hike creates a discriminatory, two-tiered financial system that disproportionately affects poor Nigerians, who may not be able to afford the higher charges. It is contended that such a policy not only inflicts financial hardship on the economically vulnerable but also contributes to broader human rights violations.
In its suit, SERAP asserts that the CBN is compromising its stated mission to advance the management of the country’s economy and promote sustainable development by failing to comply with its statutory obligations.
SERAP emphasizes that the exorbitant fees should be borne by wealthy banks and their shareholders, rather than by the general public. According to SERAP, the CBN’s decision is manifestly unfair, unreasonable, and unjust, particularly when juxtaposed with the enormous profits declared by banks, which amount to trillions of naira annually—profits that are largely generated at the expense of their customers.
The suit argues that the increase in ATM fees directly contravenes the objectives of the Federal Competition and Consumer Protection Act, which is designed to protect and promote consumer welfare and prohibit unfair business practices. Section 1(c)(d) of the Act mandates that its provisions be applied to all commercial activities within Nigeria, including those conducted by government agencies like the CBN.
The suit further cites Section 70(1) of the Act, which prohibits an undertaking from abusing its dominant position by charging excessive fees, and Section 104, which asserts the supremacy of the Act over other laws, except where the Nigerian Constitution provides otherwise. Section 127(1) of the Act similarly prohibits the provision of services at prices that are manifestly unfair, unreasonable, or unjust.
SERAP is seeking several reliefs from the court, including a declaration that the CBN’s circular and the decision to increase ATM transaction fees are arbitrary, unfair, unreasonable, and unjust. Additionally, SERAP is requesting a declaration that, under the combined provisions of the Federal Competition and Consumer Protection Act 2018, the CBN cannot unilaterally increase these fees without the consent of the Federal Competition and Consumer Protection Commission (FCCPC).
SERAP is also asking for an order setting aside the circular and an interim injunction to restrain the CBN, its officers, agents, and any other persons acting on its behalf, as well as all banks and financial institutions in Nigeria, from enforcing the fee increase pending the resolution of the case.
No date has yet been fixed for the hearing of the interim application or the substantive suit.
