The Socio-Economic Rights and Accountability Project, SERAP, has filed a lawsuit against the Central Bank of Nigeria, CBN, over what it termed the ”failure to reverse the patently unlawful, unfair, unreasonable and unjust increase in Automated Teller Machine (ATM) transaction fees”.
The CBN recently announced that ATM withdrawals made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn. ATM withdrawals at shopping centres, airports or standalone cash points, will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal.
In the suit number FHC/L/CS/344/2025 filed last Friday at the Federal High Court, Lagos, SERAP is asking the court to determine whether the decision by the CBN to increase ATM transaction fees is not arbitrary, unfair, unreasonable, and contrary to the provisions of the Federal Competition and Consumer Protection Act 2018.
In the suit, SERAP is arguing that the increase cannot be justified under the Nigerian Constitution 1999 [as amended], the CBN Act, Federal Competition and Consumer Protection Act, and the country’s international human rights obligations.
SERAP said the CBN through a Circular to all banks and other financial institutions dated February 10 2025 stated that it has reviewed and increased the ATM transaction fees prescribed in section 10(7) of the CBN Guide to Charges by Bank, Other Financial and Non-Bank Financial Institutions 2020.
It explained that section 1(c)(d) of the Federal Competition and Consumer Protection Act, 2018 provides that the objectives of the Act are to ‘protect and promote the interests and welfare of consumers’ and ‘prohibit restrictive or unfair business practices’ such as the exorbitant and unreasonable increase in ATM transaction fees by the CBN.
The provisions of the Federal Competition and Consumer Protection Act, SERAP said are directly binding on the CBN, as the provisions constrain the exercise of the statutory powers and functions of the institution.
It added that section 2(1) of the Act provides that its provisions ‘apply to all undertakings [such as the CBN] and scope of application to all commercial activities within Nigeria, stressing that section 2(2) provides that the Act is binding upon- (a) a body corporate or agency of the Government; (b) a body corporate; (c) all commercial activities aimed at making profit and geared towards the satisfaction of demand from the public.
According to section 70(1) of the Act, for the purpose of this Act, an undertaking [such as the CBN] is considered to be in a dominant position if it is able to act without taking account of the reaction of its customers or consumers.SERAP stated that the Act prohibits abuse of dominant position by the CBN including charging excessive ATM transaction fees to the detriment of consumers.
SERAP stated that the Act prohibits abuse of dominant position by the CBN including charging excessive ATM transaction fees to the detriment of consumers.
It said that section 104 of the of the Act asserts the supremacy of the Act over ‘the provisions of any other law’, such as the CBN Act and the only exception to the provision is the Nigerian Constitution 1999 [as amended].
It observed that Section 127(1) of the Act also prohibits the CBN from making any policy or providing any services at a price that is manifestly unfair, unreasonable or unjust.
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