SERAP has urged President Bola Tinubu to suspend the recent ATM fee hike pending a court ruling, citing adherence to constitutional obligations. The CBN’s fee increase has raised concerns over financial inclusion and economic impact, prompting SERAP to file a lawsuit. This situation highlights the need for government accountability amid rising inflation and financial instability in Nigeria.
The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to instruct the Central Bank of Nigeria (CBN) to suspend the recent increase in automated teller machine (ATM) withdrawal fees. This request is made pending a court ruling on the matter, emphasizing adherence to the Nigerian Constitution and the President’s obligations to uphold the rule of law.
The CBN’s decision to raise ATM withdrawal charges has generated significant concern among Nigerians, who worry about its implications for financial inclusion and access to banking services. The new policy imposes higher fees for cash withdrawals from ATMs belonging to other banks, drawing widespread criticism from consumer advocacy organizations and civil society.
SERAP has already initiated legal action against the fee increase, claiming it undermines the economic rights of Nigerians and exacerbates financial hardship. By appealing to President Tinubu, SERAP highlights the administration’s responsibility to protect citizens’ interests and counter what it deems an unjust financial policy.
The organization stresses that suspending the fee hike until the court renders its decision is essential, serving as a testament to the government’s commitment to public welfare. This fee increase occurs during a period of rising inflation and economic instability, further aggravating the difficulties faced by the population, who are voicing their discontent on social media.
Financial analysts have also critiqued the CBN’s measures, suggesting that they counteract efforts to facilitate cashless transactions and expand banking accessibility. They warn that increased transaction costs might push more individuals towards informal financial systems, thus undermining the effectiveness of monetary policy in Nigeria.
SERAP recently filed a lawsuit in the Federal High Court in Lagos to prevent the CBN from enacting the increased ATM transaction fees. This legal action, designated as suit number FHC/L/CS/344/2025, aims to challenge the CBN’s decision, announced on February 11, 2025, with implementation set for March 1, 2025.
The CBN justified the fee increase as necessary to accommodate rising operational costs and improve ATM service efficiency. This revision marked the first change since the withdrawal fees were reduced from N65 to N35 in 2019. Customers will still benefit from free withdrawals at their bank’s ATMs, while fees will apply at ATMs from other banks, including a new charge of N100 plus a potential surcharge of N450 per N20,000 withdrawal.
In summary, SERAP’s call for President Tinubu to halt the ATM fee increase until a court ruling emphasizes the need for adherence to constitutional principles and the protection of Nigerians’ economic rights. The current financial environment, marked by inflation and rising costs, exacerbates the impact of the fee hike, which could further limit access to banking services. SERAP’s legal actions highlight the ongoing struggle for accountability and the need for government commitment to public welfare.
Original Source: nairametrics.com
