The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso to suspend the implementation of the increase in Automated Teller Machine (ATM) transaction fees, pending the hearing and determination of the lawsuit before the Federal High Court, Lagos, challenging the legality of the increase.
SERAP also urged him to seek legal advice from the Attorney General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN) on whether the CBN has the legal responsibilities to uphold the rule of law in its operations by suspending the ATM fee hike, pending the determination of the lawsuit on the matter.
Recall that SERAP had last month filed a lawsuit against the CBN over its failure to reverse what it described as “patently unlawful, unfair, and unjust increase in ATM transaction fees.”
The lawsuit followed the announcement by the CBN 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made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn.
According to the apex bank, ATM withdrawals at shopping centres, airports or standalone cash points will incur a N100 fee plus a surcharge of up to N500. Banks were advised to apply the increased ATM fees with effect from March 1, 2025.
However, in an open letter at the weekend, signed by SERAP deputy director Kolawole Oluwadare, the organisation said directing the CBN to suspend the ATM fee hike would allow the Federal High Court to hear and determine the case on its merit.
SERAP told President Tinubu that acting now to stop the implementation would be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 (as amended), his oath of office and oft-repeated promises to uphold the rule of law.
According to the organisation, implementing the increased ATM fees while the lawsuit on the matter is pending before the Federal High Court would make a mockery of the judicial process and the rule of law.
SERAP added that it was in the public interest for the CBN to suspend the increased ATM fees and await the outcome of the lawsuit on the matter.
It stressed that the CBN had the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations did not make nonsense of the rule of law or the Court.
“The CBN has the duty to maintain the status quo as of 26 February 2025 when the court processes were duly served on it, and during the pendency of the lawsuit filed by SERAP on the increased ATM fees before the Federal High Court, Lagos.
“Once the CBN has been duly served with the court processes on the increased ATM fees, the bank cannot resort to self-help. The CBN is not permitted to do or take any action or omission that would overreach the public interest or foist a situation of complete helplessness or ‘fait accompli’ on the Federal High Court,” SERAP stated.
It noted that the Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending strong signals that they are not being used as mere subterfuge to tie the hands of one party while the other helps himself extra-judicially.
Implementing the increased ATM fees while the duly served and acknowledged interlocutory application and the substantive lawsuit on the matter are pending before the court, SERAP noted, would pose a direct threat to the integrity of the country’s judicial system and the rule of law.
“The credibility and relevance of the judicial system risk being undermined, potentially encouraging other ministries, departments and agencies (MDAs) to adopt dismissive attitudes toward pending cases in court.
“The CBN ought to uphold its general duty to act in good faith, and to refrain from taking any action that may undermine the integrity of the country’s judicial process by immediately suspending the implementation of the increase in ATM transaction fees pending the hearing and determination of the lawsuit on the matter,” SERAP advised.
