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SERAP Orders CBN To Withdraw Illegal, Unfair ATM Transaction Fees Within 48 Hours
The Socio-Economic Rights and Accountability Project (SERAP) has urged the Governor of the Central Bank of Nigeria, Olayemi Cardoso, to “immediately withdraw the patently unlawful, unfair, unreasonable and unjust increase in Automated Teller Machine (ATM) transaction fees.”
The SERAP urged Cardoso to “ensure that the exercise of CBN statutory powers and functions does not inflict misery on poor Nigerians and contribute to human rights abuses.”
Recall that 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made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn.
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It added that 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.
Banks ‘are advised to apply the increased ATM fees with effect from March 1, 2025,’ the CBN declared in its notice.
In the open letter dated 15 February 2025 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “the manifestly unlawful, unfair, unreasonable, and unjust increase in ATM transaction fees will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country.”
The SERAP said, “The increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public. The increase only benefits the CBN and commercial banks at the expense of poor Nigerians.”
According to the SERAP, “CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits mostly at the expense of their customers. The increase in ATM transaction fees would inflict misery on poor Nigerians and contribute to human rights abuses.”
The letter, read in part: “The increase in ATM transaction fees is also entirely inconsistent with the oft-expressed commitment by the government of President Bola Tinubu to address the growing poverty across the country.
“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest.
“The exorbitant and unlawful increase in ATM transaction fees at a time the country is facing economic and financial crises would contribute further to the impoverishment of the population.
“Imposing exorbitant ATM transaction fees on socially and economically vulnerable Nigerians at a time several Nigerian banks are declaring trillions of naira in profits yearly is manifestly unfair, unreasonable and unjust.
“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.
“The patently unlawful, unfair, unreasonable and unjust increase in ATM transaction fees also inherently contributes to violations of the human rights of socially and economically Nigerians.
“The increase creates a two-tiered financial system that discriminates against poor Nigerians who may not be able to afford or pay the increased fees.
“While the government of President Tinubu has primary responsibility for protecting the rights of Nigerians, the CBN also has the responsibilities to ensure that its practices and guidelines do not cause or contribute to human rights abuses.
“The CBN could play an important role in promoting economic opportunities for Nigerians where the majority of the people live in poverty.
“The CBN is failing to comply with the Nigerian Constitution, the Federal Competition and Consumer Protection Act and the country’s international human rights obligations in the exercise of its statutory powers and functions.
“The CBN is also compromising its stated mission to advance the management of the country’s economy, and ultimately, sustainable development.
“According to our information, 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.
“Section 42(1)(a) of the CBN Act 2007 provides that ‘The Bank shall wherever necessary seek the co-operation of and co-operate with other banks in Nigeria to – (a) promote and maintain adequate and reasonable financial service for the public.’ It also provides that any policy of the CBN ‘shall be in the national interest.’
“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.
“Significantly, the provisions of the Federal Competition and Consumer Protection Act are directly binding on the CBN, as the provisions constrain the exercise of the statutory powers and functions of the institution.
“Specifically, section 2(1) the Act provides that its provisions ‘apply to all undertakings [such as the CBN] and scope of application to all commercial activities within, or having effect within, Nigeria.
“Section 2(2) provides that, ‘This Act also applies to and is binding upon- (a) a body corporate or agency of the Government of the Federation; (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.’
“The Act prohibits abuse of dominant position by the CBN including charging excessive ATM transaction fees to the detriment of consumers.
“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. The only exception to the provision is the Nigerian Constitution 1999 [as amended].
“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.
“The CBN has clear responsibilities under the United Nations Guiding Principles on Business and Human Rights (UNGPs) to undertake human rights due diligence to identify and mitigate contributions to human rights violations of not only its own activities but also activities to which it is directly linked by its business relationships.
“The CBN has responsibilities under the UNGPs to take effective steps to avoid or mitigate potential human rights harm and to consider ending any charges or transaction fees where severe negative human rights consequences cannot be avoided or mitigated.”
The National Agency for Food and Drug Administration and Control (NAFDAC) has warned that indiscriminate alcohol consumption poses a serious threat to Nigerians, linking alcohol use to banditry and warning of its damaging effects on the body.
NAFDAC Director-General, Prof. Mojisola Adeyeye, raised the alarm during an interview on Channels Television’s Sunrise Daily on Wednesday.
According to Adeyeye, alcohol can damage vital organs, including the brain, lungs, kidneys and liver, while also posing a threat to the future of Nigerian children and the country’s workforce.
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The NAFDAC boss was speaking in defence of the agency’s enforcement of the ban on alcoholic drinks sold in sachets and PET bottles of less than 200 millilitres.
She explained that sachet alcohol was approved about three decades ago but eventually became difficult to control.
“But this monster became uncontrollable. This monster stood out to destroy the future of our workforce, of our children.”
Adeyeye said NAFDAC had taken decisive action to curb the production and distribution of such products, including shutting down three major companies for three weeks and taking enforcement action against individuals involved.
She acknowledged that the ban had faced resistance from some stakeholders, noting that some people demonstrated against the policy in Ibadan.
However, she maintained that the agency’s priority was to protect public health and prevent the long-term consequences of alcohol abuse.
The NAFDAC DG said the National Alcohol Policy launched by the Ministry of Health also includes a ban on sachet alcohol and alcohol sold in PET bottles below 200ml.
She said some Nigerians were focused on the immediate economic impact of the restrictions without considering the long-term consequences.
“They were demonstrating because they are seeing the situation now; they are not seeing into the future that alcohol destroys the brain, it destroys the lungs, it destroys the kidneys, the liver; it encourages banditry,” Adeyeye said.
She added that manufacturers had been required to sign undertakings not to produce alcoholic drinks in sachets or small bottles below the approved threshold.
Adeyeye maintained that although the measures had generated pushback, the agency would continue enforcing the restrictions in what she described as an effort to safeguard the health and future of Nigerians.
The National Agency for Food and Drug Administration and Control (NAFDAC) has clarified that fresh farm produce such as yam, oranges and apples are not under the agency’s direct regulatory control.
NAFDAC Director-General, Prof. Mojisola Adeyeye, explained that the agency regulates processed and semi-processed products, while naturally grown agricultural produce falls under the control of the Ministry of Agriculture.
Adeyeye made the clarification during an interview on Channels Television’s Sunrise Daily on Wednesday.
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“In terms of sister agencies, the civil service is amazing; people like to work in silos. ‘This is my turf, don’t go there.’ No, we are supposed to work corporately.
“For example, the National Food and Safety Policy said that produce from the farm is not under the control of NAFDAC. NAFDAC is in control of semi-processed products,” the NAFDAC DG stated.
She further explained that fresh agricultural products such as apples and oranges are not within NAFDAC’s direct mandate at the farm-produce stage.
“So, in the social media thing that we responded to, they said apples, NAFDAC; oranges, NAFDAC. No, that is under the Ministry of Agriculture, but we are supposed to work together because it is that produce that can be processed, which is under our control.”
Adeyeye, a professor, added: “So, when you take your oranges in the morning, you take your apple, that is not NAFDAC, but everything is about NAFDAC — yam is NAFDAC; fufu is NAFDAC. No.”
The clarification comes amid growing concerns over food safety in Nigeria, particularly allegations surrounding the use of potentially harmful chemicals in the production, preservation and processing of food items.
The NAFDAC DG’s comments also came days after former Vice President Yemi Osinbajo recalled in a viral video how laboratory testing reportedly showed that fresh juice squeezed from oranges by his wife was unsafe for consumption.
While speaking at an Open Day for Gardeners’ seminar themed “Leaving The Earth Better Than We Found It,” Osinbajo reportedly recounted that his wife began experiencing strange headaches after drinking her fresh orange juice every day.
The Benue State Government has denied any involvement in the reported blockade of the presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, during his visit to the state.
The Commissioner for Information and Culture, Solomon Lorpev, said the government was not officially informed about Obi’s visit and described the failure to notify the state authorities as a breach of protocol.
Speaking on Channels Television’s The Morning Brief on Wednesday, Lorpev rejected claims that Governor Hyacinth Alia or his administration sent people to prevent Obi from travelling within the state.
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According to the commissioner, the government only became aware of the incident after reports emerged that Obi’s convoy had been stopped along the Makurdi-Gboko federal highway.
Lorpev argued that Obi, being a former governor and presidential candidate, should have informed the state government of his arrival because of the security implications surrounding his movement.
He said the police could not be regarded as acting on behalf of the governor simply because Obi’s party had informed the police of his planned visit.
The commissioner also challenged individuals alleging that government appointees were behind the blockade to provide evidence.
He maintained that the state government was investigating the incident and would issue a statement once the facts were established.
The controversy followed Obi’s arrival in Makurdi on Tuesday for a planned visit to Yelewata, where he intended to sympathise with families affected by the deadly June 2025 attacks.
Obi arrived at the Tactical Air Command airport in Makurdi at about 9 a.m. and was received by NDC governorship candidate Terhemba Shija and other party officials.
However, his convoy reportedly encountered a roadblock mounted by youths along the Makurdi-Gboko federal highway shortly after leaving the airport.
The blockade reportedly caused traffic congestion after the road was closed to motorists.
Reacting to the incident, Obi described the development as “very worrisome” and condemned the use of youths to perpetrate political violence.
He said he had travelled to Yelewata to console victims and show solidarity with families affected by the killings.
The incident has since triggered renewed debate over political freedom, security arrangements and the responsibilities of state authorities during visits by prominent political figures.
While the Benue Government continues to deny responsibility for the blockade, it says its investigation will establish the circumstances surrounding the incident and determine whether any government officials were involved.
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