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Direct CBN To Suspend ATM Fee Hike Pending Court Verdict, SERAP Tells Tinubu

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The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to “direct Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN) 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.”

The 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 its operations by suspending the ATM fee hike, pending the determination of lawsuit on the matter.”

The SERAP had last month filed a lawsuit against the CBN “over the failure to reverse the “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made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn. ATM withdrawals at shopping centres, airports or standalone cash points, will incur a N100 fee plus a surcharge of up to N500.

ALSO READ: JUST IN: Tinubu Signs Record N54.99trn 2025 Budget Into Law

In the open letter dated 1 March 2025 and 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.”

The SERAP said, “It would also be entirely consistent with the letter and spirit of the Nigerian Constitution 1999 [as amended], your oath of office and oft-repeated promises to uphold the rule of law.”

According to the SERAP, “Implementing the ATM fee hike 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.”

The SERAP also said, “The CBN is bound to suspend the increase in ATM transaction fees, and await the outcome of the lawsuit.”

The letter, read in part: “The CBN has the responsibilities to uphold the due process of law, protect the integrity of the judicial process, and ensure that its practices and operations do 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 ATM fee hike before the Federal High Court, Lagos.”

“Once the CBN has been duly served with the court processes on the ATM fee hike, 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.”

“Nigerian courts frown upon any act of self-help and are always swift in repelling such conduct by sending strong signal 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 increase in ATM transaction fees while the duly served and acknowledged interlocutory application and the substantive lawsuit on the matter are pending before the court 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.”

“We would be grateful if the recommended measures are taken urgently to ensure respect for the integrity of the judicial process and the rule of law.”

“It is in the public interest to keep the streams of justice clear and pure, and to maintain the authority and integrity of the court in the case.”

“SERAP had on 21 February 2025 filed the lawsuit with number FHC/L/CS/344/2025 against the CBN over the failure to reverse the patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees.”

“The court processes were duly served on 26 February 2025 on the CBN in Abuja. The CBN has acknowledged receipt of the processes.”

“In the lawsuit filed 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.’”

“It is in the public interest to keep the streams of justice clear and pure, and to maintain the authority and integrity of the court in the case.”

“SERAP notes that since assumption of office in May 2023 you have repeatedly promised, including in your inaugural speech, that ‘Nigeria will be impartially governed according to the Constitution and the rule of law.’”

“Protecting the right to a judicial recourse and due administration of justice is of utmost importance, being the cornerstone of an ordered society. The only way in which SERAP can have a fair and effective access to justice in this matter is to allow the court to decide, one way or the other, on the merits of the case before it.”

“The core of the principle of judicial independence is the complete liberty of the judge to hear and decide the cases before them on the basis of facts and in accordance with the law, without any improper interference, direct or indirect.”

“Section of 8(1) of Central Bank of Nigeria Act provides that, ‘The Governor and Deputy-Governors shall be persons of recognized financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment.’”

“Section 6(1) of the Nigerian Constitution 1999 [as amended] provides that ‘judicial powers of the Federation shall be vested in the courts to which this section relates, being courts established for the Federation.’”

“Section 6 provides that, ‘the judicial powers vested in accordance with the foregoing provisions of this section –(a) shall extend, notwithstanding anything to the contrary in this constitution, to all inherent powers and sanctions of a court of law.’”

“The provisions also provide: ‘(b) the judicial powers shall extend to all matters between persons, or between government or authority and to any person in Nigeria, and to all actions and proceedings relating thereto, for the determination of any question as to the civil rights and obligations of that person.’”

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With Crude at $111, IEA Sees Prolonged Crisis

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Brent crude oil price rose above $111 per barrel on Tuesday, as the International Energy Agency (IEA) warned that global energy markets might not return to normal in 2027 amid escalating tensions in the Middle East.

The international benchmark was trading above $111 per barrel, according to CNN, as concerns over a possible escalation of the conflict involving the United States and Iran heightened fears of further disruptions to global oil supplies.

However, Oilprice.com data showed that Brent later retreated to $109 during the day.

The Executive Director of the IEA, Fatih Birol, warned that the global energy market remained vulnerable to overlapping crises in the Middle East, saying there was no credible prospect of a return to normal next year.

“I don’t see any credible pathway that 2027 will be a year of normalisation,” CNN quoted Birol as saying at an industry gathering in London on Tuesday.

READ ALSO: NCDMB Joins Hand with Manufacturers to Boost Local Oil, Gas Components Production

He warned that the Strait of Hormuz, a strategic waterway that handled about one-fifth of global oil and natural gas supplies before the war, could be closed again.

“The Strait of Hormuz has been closed once, it can be closed again,” he said.

The warning comes as crude oil price rose in recent weeks amid concerns that the conflict involving the United States and Iran could escalate, threatening oil production and shipments across the region.

Iran has signalled preparations for another round of conflict, issuing public threats against Washington, while Saudi Arabia has faced attacks by Iran-backed Houthi militants that have disrupted oil shipments.

The developments have heightened uncertainty in the international energy market, although oil continues to flow from the Middle East despite the security challenges.

Data from analytics firm, Kpler, showed that the seven-day average of oil flows from the region, including shipments through the Strait of Hormuz, the Red Sea and the Gulf of Oman, had risen above pre-war levels to just over 24 million barrels per day as of Tuesday.

CNN reported that the restoration of Saudi Arabia’s pipeline exports had helped sustain oil flows, even as tanker crossings through the Strait of Hormuz remained well below pre-war levels.

Birol warned against assessing the severity of the energy crisis solely through crude oil prices, noting that petroleum products had experienced more significant price increases.

“We don’t use crude oil, we use products,” he said, noting that diesel prices had doubled from pre-war levels, largely because of the conflict involving Iran and attacks on Russian refineries.

He warned that the outlook could worsen as diesel demand typically increases during the coming season, while several major refineries are scheduled for maintenance.

“We are on thin ice and I am very worried about this,” he stated.

The IEA chief added that member countries would consider releasing additional emergency oil reserves if necessary to ease supply pressures.

The agency’s member countries agreed to release 400 million barrels from emergency reserves in March, with about 80 percent of the volume already supplied to the market and the remaining 20 percent yet to be released.

Birol said member countries still held about 1.6 billion barrels in reserves.

“We are keeping it for the rainy days,” he said.

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NCDMB Joins Hand with Manufacturers to Boost Local Oil, Gas Components Production

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NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

Steps for the actualisation of recommendations from an industry-wide study on in-country manufacturing of key components for the oil and gas industry was the focus at a stakeholders’ meeting on Monday in Port Harcourt, Rivers State.

According to the Nigerian Content Development and Monitoring Board (NCDMB), the meeting was aimed at boosting local manufacturing capacity, empowering indigenous enterprises, and reducing reliance on imported components.

READ ALSO: Dangote Preaches Ambition, Africa First to Nigerian Creatives

Recall that on July 7, 2022, the NCDMB commissioned a diverse oil industry team to develop a strategy for in-country manufacturing of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions, and instrument fittings, and the team submitted its report on July 12, 2023.

The study was initiated after local manufacturing of vital components was identified as essential to advancing Nigerian content, given their significant role in sustaining oil and gas production uptime and their substantial share of both operating and capital expenditures.

Representing the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe at the meeting, the General Manager, Institutional Development, Capacity Building Directorate, Olugbenga Sheba, underscored the Board’s drive to deepen local capacity, promote industrialisation, and maximise value retention in the Nigerian oil and gas industry.

He emphasised that developing the capacity to manufacture critical industry components within the country would strengthen indigenous enterprises, improve technical competence, and position Nigerian companies to participate more effectively in the supply chains of major oil and gas projects.

He cited the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for first consideration of Nigerian goods and services, reinforcing the statutory basis for promoting indigenous participation and local production.

According to him, the Board remains committed to ensuring that the implementation of the study report’s recommendations is guided by the provisions of the Act and creates greater opportunities for qualified Nigerian companies to thrive.

“Today’s rollout is not an isolated initiative; it is an integral pillar of our NCDMB 10-Year Strategic Roadmap, which targets achieving 70% Nigerian Content by 2027,” he stated.

He explained that the implementation of the study report would directly advance the technical capability development pillar of the Board’s 10-Year Strategic Roadmap by addressing identified skills gaps, technological deficiencies, and limitations in local manufacturing capacity.

He further outlined key areas of focus for the implementation process, including infrastructure expansion, structured capacity-building initiatives, improved access to capital and strategic partnerships, as well as effective monitoring, compliance, and enforcement.

He urged stakeholders to demonstrate strong commitment to the implementation process, stressing that collaboration among the Board, indigenous manufacturers, operators, service companies, financial institutions, and other industry players would be critical to achieving sustainable results.

In his presentation, Assistant Manager, Institutional Strengthening of the Capacity Building Directorate, Mr. Nander Salmwang, disclosed that approximately 60 indigenous companies had been identified in the assessment, of which only 18 met the required criteria. He also highlighted challenges affecting the development and expansion of in-country manufacturing capacity, underscoring the need for targeted interventions to bridge existing gaps.

Similarly, Manager, Nigerian Content Development Fund (NCDF), Emmanuel Yusuf presented funding opportunities available through the NCDF, explaining the relevance of financial support to indigenous companies and community contractors seeking to strengthen their operations and participate more actively in the industry’s supply chain.

The meeting also highlighted the relevance of the Nigerian Oil and Gas Park Scheme (NOGaPS) in supporting the development of local manufacturing infrastructure and capabilities.

Other presentations and discussions provided a platform for stakeholders to examine existing opportunities, identify implementation challenges, and explore practical approaches to improving indigenous participation in the manufacturing of critical oil and gas equipment and components.

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NNPC Ltd Exploration Spending Down 87%

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The Nigerian National Petroleum Company Limited (NNPC Ltd) slashed additions to its exploration and evaluation assets by 87.7 percent to N78.8 billion in 2025, from N640.5 billion in 2024, according to its latest Annual Financial Report (AFS).

In the same vein, the national oil company’s gas flaring charges during the period under consideration fell by 62.2 percent from N1.32 trillion in 2024 to N499 billion in 2025, the financial report indicated.

However, the decline in exploration funding may not be unconnected with the slowdown in the search for hydrocarbons in underexplored areas, including the Chad Basin, Benue Trough, Bida Basin and Sokoto Basin, all in the northern part of Nigeria.

Despite billions of naira committed to the programme, projects such as Kolmani, straddling Bauchi and Gombe States; drilling and appraisal activities such as the Wadi-2 exploratory well in Borno and exploration activities and seismic data gathering in Nasarawa State have yet to reach breakthrough levels.

READ ALSO: 200 Imo Teachers Benefit from NCDMB’s Effective Curriculum Training

To compound the matter. President Bola Tinubu’s Executive Order 9 of 2026, has now suspended the state oil major’s collection and management of the 30 percent Frontier Exploration Fund (FEF) and ordered that the money be remitted directly to the Federation Account for distribution among the federal, state and local governments.

On gas flaring, the group’s total charges declined to N499 billion from N1.32 trillion in 2024. The amount comprised N247.8 billion in flare fees, down from N708.6 billion, and N251.2 billion in penalties for flaring above approved limits, compared with N610.4 billion previously.

The fees are statutory charges based on limits approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under Section 104 of the Petroleum Industry Act (PIA). Despite the reduction, penalties accounted for approximately half of the group’s total gas flaring charges.

At the parent company level, gas flaring charges dropped to N317.3 billion from N1.04 trillion.

The decline came as the NNPC Ltd paid N11.56 trillion to settle royalties, rentals and gas flare obligations during the year, more than four times the N2.83 trillion recorded in 2024.

The reduction in outstanding liabilities also reflected a N1.18 trillion write-back of excess provisions from earlier years. Consequently, the group’s outstanding liability under the category fell by 86.2 percent to N1.27 trillion from N9.21 trillion.

Royalty charges, however, increased by 4.1 percent to N4.66 trillion, while the levy payable to the Niger Delta Development Commission (NDDC) rose by 29.2 percent to N514.7 billion.

Overall, total additions across intangible asset classes fell by 88.6 percent to N79 billion, from N692.7 billion in 2024, while additions to mineral rights were nil, compared with N46.3 billion a year earlier.

Mineral rights represent rights associated with exploring for or extracting oil and gas from specified acreage.

In Nigeria’s petroleum industry, these rights are linked to legally recognised entitlements to undertake petroleum operations, subject to applicable laws, lease terms and regulatory approvals. The absence of additions means the NNPC Ltd recorded no new expenditure in that asset category during the year.

The report also showed that mineral rights valued at N16.4 billion relating to oil mining leases 64 and 66 were removed after being fully impaired. An impairment occurs when an asset’s recorded value is no longer considered recoverable under applicable accounting rules.

The report also disclosed lower spending on selected operational activities, as rig site and stimulation expenses declined to N2.9 billion from N16.5 billion earlier recorded by the national oil company. Besides, the AFS showed that allocated technical and production costs fell to N144.4 billion from N489.6 billion, while crude handling and port charges declined to N1.06 trillion from N1.52 trillion.

However, direct well expenses increased by 65.9 percent to N4.15 trillion from N2.50 trillion, while depreciation of oil and gas properties rose by 15 percent to N3.71 trillion. Spending on safety, environmental and pollution control activities also increased to N74.5 billion from N2.3 billion.

In the same vein, labour costs charged to the cost of sales rose more than fourfold to N254.5 billion from N59.7 billion, while insurance and security expenses increased to N213.9 billion from N182.2 billion.

Elsewhere, the NNPC Ltd’s financials showed that investments in subsidiaries in the parent company’s accounts declined to N6.23 trillion from N6.65 trillion, with the three refineries carried at a combined value of N2.72 trillion.

The wider group recorded weaker revenue performance, with revenue falling by 23.4 percent to N34.52 trillion in 2025 from N45.08 trillion a year earlier. In the same vein, Anoh Gas, in which the NNPC Ltd holds a 50 percent interest, recorded a loss of N4.86 billion.

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