The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for its failure to reverse the recent hike in Automated Teller Machine (ATM) transaction fees, arguing that the decision is unlawful, unfair, unreasonable, and unjust.

The lawsuit, filed last Friday at the Federal High Court in Lagos under suit number FHC/L/CS/344/2025, seeks to halt the enforcement of the new ATM withdrawal charges introduced by the CBN.

New CBN ATM Charges and Public Backlash

The CBN recently announced new ATM withdrawal fees, increasing transaction costs for customers using machines outside bank branches. Under the new policy:

• Withdrawals made at an ATM outside a bank branch will now attract a charge of N100 per N20,000 withdrawn.
• Withdrawals from ATMs in shopping malls, airports, or standalone cash points will attract N100 plus a surcharge of up to N500 per N20,000 withdrawal.

This significant increase has sparked widespread criticism from consumer rights groups, financial analysts, and everyday Nigerians, who argue that the policy disproportionately affects low-income individuals.

SERAP’s Legal Arguments Against CBN

In its lawsuit, SERAP is asking the court to determine whether the CBN’s decision to increase ATM transaction fees is arbitrary, unfair, and contrary to the Federal Competition and Consumer Protection Act (FCCPA) of 2018.

The group is specifically seeking:

• A declaration that the CBN’s decision violates Sections 1(c) and (d), 104, 105, and 127(1) of the Federal Competition and Consumer Protection Act (FCCPA) 2018, which is binding on the central bank.
• An interim injunction restraining the CBN and its agents from enforcing the new ATM fees until the court hears and determines the motion on notice for an interlocutory injunction.

Violation of Consumer Rights and Economic Discrimination

SERAP argues that the increase in ATM transaction fees is not justified under the:

• Nigerian Constitution (1999, as amended)
• CBN Act
• Federal Competition and Consumer Protection Act
• Nigeria’s international human rights obligations

According to SERAP, the new charges create a two-tier financial system that discriminates against poor Nigerians who may not be able to afford the increased ATM fees.

“The patently unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically vulnerable Nigerians,” SERAP stated.

The organization further accused the CBN of compromising its mandate to manage the Nigerian economy effectively, arguing that the policy could worsen financial exclusion and hinder sustainable development.

Legal and Consumer Implications

The lawsuit against the CBN highlights growing concerns over anti-consumer banking policies that could further strain the finances of ordinary Nigerians amid ongoing economic challenges.

If the Federal High Court rules in SERAP’s favor, the CBN could be forced to halt or revise the new ATM withdrawal fees, ensuring that consumers are protected from exploitative banking policies.

For now, the case remains pending, and Nigerians await a judicial decision that could shape the future of banking regulations and financial accessibility in the country.