“Nigerian Courts Disapprove”: Group Explains Why CBN Should Halt New ATM Withdrawal Charges

• SERAP has urged President Tinubu to direct the CBN governor to suspend the increase in ATM withdrawal fees until the court ruling is upheld
• According to SERAP, an increase in ATM fees by the CBN would amount to weakening the rule of law and the judicial system
• In an open letter, the civil society group said that the apex bank had to stop the increase and wait for the lawsuit to be resolved

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

President Bola Tinubu has been urged by the Socio-Economic Rights and Accountability Project (SERAP) to direct Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), to stop the increase in fees for Automated Teller Machine (ATM) transactions until the legality of the lawsuit has been resolved.

SERAP claimed that the CBN would be undermining the rule of law and the legal system if it were to impose the rise in ATM fees while the case was still pending in the Federal High Court in Lagos.

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In addition, the civil society organization want the apex bank to halt the rise and await the resolution of the litigation in an open letter dated March 1, 2025, written by its Deputy Director Kolawole Oluwadare.

SERAP further urged the president to seek legal advice from the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN),, regarding the CBN’s legal responsibility to uphold the rule of law by suspending the ATM fee increase while the lawsuit is pending.

This case was filed following the CBN's declaration that there will henceforth be a fee of N100 for every N20,000 withdrawn from ATMs held by banks outside of their branch locations.

This meant that withdrawals at standalone cash stations, retail malls, or airports were subject to a N100 fee plus a N500 surcharge.

How SERAP reacted to CBN's withdrawal feel

In the open letter, SERAP claimed that the suspension of the price increase would be consistent with the president's oath of office, the 1999 Nigerian Constitution (as amended), and the president's repeated pledges to enforce the rule of law.

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The group maintained that the CBN must preserve the integrity of the legal system, respect due process, and make sure that its actions do not jeopardize the court or the rule of law.

Additionally, it affirmed that the CBN must preserve the status quo as of February 26, 2025, when the court documents were properly served, and throughout SERAP's case in the Federal High Court in Lagos against the increase in ATM fees.

SERAP stated,

“The CBN is not permitted to act in ways that would disregard the public interest or create a situation of complete helplessness for the Federal High Court.

“Nigerian courts disapprove of acts of self-help and respond swiftly to such conduct to reinforce that they will not be manipulated to hinder one party while allowing the other to benefit extrajudicially.

“Implementing the increase in ATM transaction fees while the upheld court processes and lawsuit are pending would directly threaten the integrity of the country’s judicial system and the rule of law.

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“The credibility and relevance of the judicial system are at risk of being compromised, which could encourage other ministries, departments, and agencies (MDAs) to adopt similarly dismissive attitudes toward pending legal cases.

CBN lists ways to avoid new N100 ATM withdrawal charges

Legit.ng earlier reported that the CBN increased the withdrawal charge on off-site ATMs to N100. The new policy will become effective on March 1, 2025.

According to the CBN, any withdrawals done in ATMs other than the holder’s ATM will attract a charge of N100 per N20,000 transactions.

The bank said charges in remote ATMs, that is, those outside banking premises such as malls, shopping centres, and other places will attract the N100 charges and a surcharge of N500.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng

Source: Legit.ng