The Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Central Bank of Nigeria (CBN), demanding an immediate reversal of the recent increase in Automated Teller Machine (ATM) transaction fees.
The organization described the new charges as “unlawful, unfair, unreasonable, and unjust,” emphasizing that they disproportionately affect low-income Nigerians who rely on cash transactions for their daily needs.
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SERAP’s Ultimatum to CBN
In a statement released on its official X (formerly Twitter) account on Sunday, SERAP warned the CBN to reverse the fee hike within 48 hours or face legal consequences. The group criticized the new charges, arguing that they would worsen the economic challenges faced by vulnerable citizens already struggling with rising inflation and financial hardship.
“We’ve given the Central Bank of Nigeria [CBN] 48 hours to reverse the patently unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees, or face legal action. The charges will hit hardest those at the bottom of the economy,” the statement read.
SERAP, known for holding government institutions accountable, has reiterated its commitment to pursuing legal action if the CBN does not comply with its demand within the stipulated timeframe.
Public Outcry Over Increased ATM Charges
The CBN’s decision to increase ATM withdrawal fees has sparked widespread criticism across Nigeria. Many bank customers have voiced their frustration on social media, highlighting how the additional charges further drain their limited financial resources.
Critics argue that the new fees will exacerbate financial burdens, particularly for low-income earners who depend on cash for everyday transactions. With Nigeria already facing significant economic challenges, including high inflation rates and rising living costs, the increased banking fees add another layer of hardship for many citizens.
Details of the New ATM Transaction Fees
According to a recent circular from the CBN, the regulatory body has revised ATM transaction fees as outlined under Section 10.7 of the “CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020).” Key changes to the fees include:
- On-Us Transactions (Same Bank ATMs): Customers using their bank’s ATM will continue to enjoy free withdrawals.
- Not-On-Us Transactions (Other Banks’ ATMs):
- On-Site ATMs (Within Bank Premises): A fee of N100 per N20,000 withdrawal will apply.
- Off-Site ATMs (Outside Bank Premises): A fee of N100 per N20,000 withdrawal plus an additional surcharge of up to N500 will be charged.
- International Withdrawals: Charges will reflect the exact amount imposed by the international acquirer.
This revision also eliminates the previous provision allowing customers three free withdrawals per month on other banks’ ATMs, increasing the financial burden on consumers.
Legal and Economic Implications
Legal analysts suggest that SERAP could challenge the CBN’s policy on the grounds of consumer rights protection and economic justice. The new fees, they argue, are discriminatory and disproportionately affect low-income Nigerians who already face financial exclusion.
SERAP’s legal action could potentially force the CBN to reconsider and adjust its policy, especially if the courts view the fee increases as a violation of citizens’ economic rights.
CBN’s Justification and Silence on the Ultimatum
As of now, the CBN has not responded to SERAP’s ultimatum. However, financial experts speculate that the central bank may defend the fee increase as a measure to align banking costs with market realities and operational expenses.
Despite this, critics argue that such a move contradicts the CBN’s stated commitment to promoting financial inclusion and making banking services more accessible to the average Nigerian.
What Happens Next?
If the CBN fails to reverse the fee increase within the 48-hour deadline, SERAP has indicated its readiness to initiate legal proceedings. The outcome of this potential legal battle could set a significant precedent for future banking regulations and consumer protection policies in Nigeria.
Consumers, advocacy groups, and legal experts will be watching closely to see whether the CBN will comply with SERAP’s demands or face a legal showdown over the controversial ATM fee hike.
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