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SERAP To Court: Stop CBN From ‘Implementing ‘Unlawful, Unjust ATM Fee Hike’

Published

6 months ago

February 23, 2025

Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) “over 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made at a machine owned by a bank but outside its branch premises will now attract a charge of N100 per N20,000 withdrawn.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.”

SERAP is asking the court for “a declaration that the decision by the CBN to increase ATM transaction fees is arbitrary, unfair, unreasonable and contrary to the provisions of sections 1(c) and (d), 104, 105 and 127(1) of the Federal Competition and Consumer Protection Act 2018, which is binding on the CBN.”

SERAP is seeking “an order of interim injunction restraining the CBN, its officers, agents, associates or any other persons acting on its directive or instructions from enforcing and giving effect to the decision, pending the hearing and determination of the motion on notice for an order of interlocutory injunction filed in this suit.”

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 is also arguing that, “The increase creates a two-tiered financial system that discriminates against poor Nigerians who may not be able to afford or pay the increased ATM fees.”

According to SERAP, “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 suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Andrew Nwankwo, read in part: “The CBN is compromising its stated mission to advance the management of the country’s economy, and ultimately, sustainable development.”

“The CBN is also 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 increase in ATM transaction fees ought to have been shouldered by wealthy banks and their shareholders, not the general public.”

“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.”

“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 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 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 are directly binding on the CBN, as the provisions constrain the exercise of the statutory powers and functions of the institution.”

“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.”

“Section 2(2) provides that: ‘This 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.’”

“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.”

SERAP is therefore asking the court for the following reliefs:

A DECLARATION that the decision by the Defendant in upwardly reviewing and increasing ATM Transaction Fees, as contained in the Defendant’s circular dated 10th February 2025 is arbitrary, unfair, unreasonable, unjust and a dis-service to the consumers of the services rendered by Banks, Other Financial and Non-Bank Financial Institutions in Nigeria, and ultimately in breach of sections 1(c) and (d), 104, 105 and 127(1) of the Federal Competition and Consumer Protection Act 2018.

A DECLARATION that by the combined provisions of section 1 (c) and (d), 104, 105 and 127 (1) of the Federal Competition and Consumer Protection Act 2018, section 42(1) (a) of the Central Bank of Nigeria Act 2007 and section 10.7 of the Central Bank of Nigeria Guide to Charges by Banks, Other Financial and Non-Bank Financial Institution 2020, the Defendant cannot unilaterally increase ATM Transaction Fees without the consent of the Federal Competition and Consumer Protection Commission (FCCPC).

AN ORDER setting aside the Defendant’s circular dated 10th February 2025 and published on 11th February 2025, with reference number FPR/DIR/GEN/CIR/001/002, directed to all Banks and Other Financial Institutions for being arbitrary, unfair, unreasonable, unjust and a breach of the provisions of sections 1 (c) and (d), 104 and 127 (1) of the Federal Competition and Consumer Protection Act 2018.

AN ORDER restraining the Defendant, including its agents, assigns, privies and or representatives or such other persons acting on its behalf, and all Banks, Other Financial and Non-Bank Financial Institutions in Nigeria from implementing and/or enforcing the decision of the Defendant.

AND FOR SUCH FURTHER ORDER(S) that the Honourable Court may deem fit to make in the circumstance of this suit.

No date has been fixed for the hearing of the interim application and the substantive suit.

News

Nestle Sacks CEO Over Office Romance

Published

9 hours ago

September 1, 2025

Editor

Swiss food giant, Nestle, on Monday dismissed Laurent Freixe as chief executive with immediate effect over an “undisclosed romantic relationship with a direct subordinate.”

The multinational behind Nespresso coffee capsules and KitKat chocolate bars said Freixe’s dismissal followed an investigation.

In a swift move, Nespresso CEO, Philipp Navratil, was appointed to take over by his fellow board members.

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle’s code of business conduct,” a statement said.

The board said it had ordered an investigation overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with the support of outside counsel.

“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said in a statement.

A company veteran, Freixe joined Nestle in France in 1986. He ran the firm’s European operations until 2014, steering them through the subprime and euro crises that began in 2008.

He headed the Latin America division before his promotion as CEO.

Freixe had only been in the top spot since a surprise switch in September 2024, entrusted with reversing soft spending by consumers for the company’s food and household goods.

Nestle’s share price slumped by nearly a quarter last year, raising concerns in Switzerland, where pension funds invest heavily in the company, whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik chocolate-flavoured drinks.

Nestle shares closed up 0.13 percent at 75.49 Swiss francs on the Swiss stock exchange.

– Net profits –

In late July, Nestle reported a 10.3-percent drop in first half profits as it struggled to turn around its fortunes amid sluggish consumer spending in China, even as it passed on higher cocoa and coffee prices to consumers.

New chief executive Navratil had been an executive vice-president at Nestle, which is headquartered in Vevey on Lake Geneva.

“The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance,” insisted chairman Bulcke.

Navratil started his career with Nestle in 2001 and took on various roles in Central America, leading the coffee and beverage business in Mexico from 2013 to 2020, when he took over responsibility for global strategy and innovation for the Nescafe and Starbucks brands.

He became chief executive of the Nespresso brand in July last year and joined the company board in January 2025.

“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance,” said Navratil, pledging to “drive the value creation plan with intensity.”

News

VIDEO: Motorists Stranded As Bridge Fails On Lagos-Benin Expressway

Published

9 hours ago

September 1, 2025

Editor

Motorists and passengers were stranded for hours after a truck fell near a failed portion of a bridge along the Isoko axis of the Lagos-Benin Expressway, exposing the river beneath and rendering the route impassable.

A viral video from the scene showed queues of trapped vehicles as frustrated road users called on the Minister of Works, David Umahi, to urgently repair the dilapidated sections of the highway.

One stranded passenger, who was filmed in the video, lamented that the incident left commuters stuck for over two hours, halting both vehicular movement and the flow of goods.

He said, “I’m currently standing on the Benin-Lagos Expressway, and where we are now is Isoko Camp. This is a bridge, a very short bridge, and this message is to the Minister of Works, Dave Umahi, the one who is building a road from Lagos-Calabar Highway, the road to nowhere. This place is currently shut down.

“This truck fell here, and there’s no way. Look at this place. Vehicles are blocked. Look this way, everywhere packed up.”

The visibly frustrated commuter revealed the deteriorating state of the bridge, pointing to exposed sections above the river, which he described as a threat to lives and businesses.

He criticised the Federal Government’s focus on the Lagos-Calabar Coastal Highway project, accusing Umahi of neglecting critical economic routes such as the Lagos-Benin Expressway.

“This is an expressway, and we have a minister. This is the Lagos-Benin Expressway yet, our minister, dey do Lagos – Calabar Highway,” he said.

“This is what we have. Do you know how many people pass here? As I’m speaking to you now, if you look up, trailer. If you know the number of trailers that are here and are trapped, it means the economy of Nigeria is affected. Because the number of goods and services has been shut down. Everywhere is shut down.

“This road now, everywhere is at standstill. This vehicle is even lucky that it didn’t fall into the water. And we have a Minister of Works wasting money, saying Calabar Expressway.”

He further argued that the Lagos-Benin Expressway carries more economic importance than the Lagos-Calabar Highway, urging the minister to prioritise repairs.

He said, “Mr. Minister, let me educate you. If you have a small economic sense, you will know that this road alone is affecting Nigeria’s economy. But that Calabar Expressway, it’s not affecting anybody. If you go there now, you won’t see vehicles parked lined up there. The only place where you will see vehicles lined up is on this road. So if the Minister has more direction, he will go and fix this road.

“I see when they say they need more money, they are borrowing more money to put in the road we don’t use. Then the one we use is abandoned. So please, those who are close to the Minister, talk to him. We are stranded here now. We have been here for over two hours now, and nothing is moving.”

The video has gained the attention of concerned citizens on social media, some of whom describe the road as a “death trap” and joined in calling for quick intervention on the road.

Watch video below:

https://x.com/MobilePunch/status/1962577345832714466?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1962577345832714466%7Ctwgr%5Edf307ccd0eb71fe84e2d24b726307513398112b3%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fpunchng.com%2Fvideo-motorists-stranded-as-bridge-fails-on-lagos-benin-expressway%2F

News

Bauchi Govt Inaugurates Pastors, Imams Peace Building Committee

Published

12 hours ago

September 1, 2025

Editor

Gov. Bala Mohammed of Bauchi state has inaugurated a 32- member Pastors/Imams peace building Committee to promote peaceful coexistence in Bogoro and Tafawa Balewa Local Government Areas of the state.

Speaking during the inauguration ceremony on Monday, the governor said the move was necessitated by the need for the government to consolidate on the peace it had built and sustained over the last six years.

According to him, this peaceful coexistence had recently been threatened by the actions of unpatriotic elements within the state who didn’t wish the state well and were bent on hiding under the cover of farmer-herder clashes to taint the gains Bauchi has made so far.

While acknowledging that minor incidences are common, especially during the farming season, Mohammed said that the dimension of the recent threats in the areas was indicative of a deliberate attempt to cause disharmony.

He said it was to also portray the state in bad face in order to sully the recognition it had attained as one of the most peaceful states in not just the Northeast sub-region but in the country at large.

“We will not allow our hard earned peaceful coexistence to be truncated by the special grace of Allah. We have invested massively over the last six years in security and peace building measures and mechanisms.

“I will not allow anyone, no matter how highly placed, to scuttle the serenity and harmony that we have attained upon which our development and growth lies. I will deal decisively with all shenanigans fueling this crisis.

“I want to assure the citizens of the state that we are working very hard and continuously with the security agencies to contain every situation around the state”, he said.

The governor said the committee is to embark on religious, sensitisation to promote peaceful coexistence and encourage inter-group communication.

He said they are to also mediate disputes and foster dialogue between different groups where necessary, act as bridges by leading initiatives for inter-faith dialogue and understanding.

Mohammed added that they are to utilize their religious institutions to provide the platforms for community engagement and mobilisation of people towards peace building efforts, influencing attitude and behaviors.

The committee, the governor said, is to leverage on the teachings of religious sacred texts to inspire others to embrace the values of love, forgiveness, eschew hatred and violence.

Responding, Rev. Benson Bature and Imam Faidu Musa, Chairmen, Council of Imams and Pastors of the two LGAs who are the co-Chairs of the committee vowed to discharge their assigned duties even if they would have to pay with their lives.

They said they knew the miscreants were being pushed by some people that didn’t want peace to reign in the two LGAs, pledging to fish them out and hand them over to the authorities.

According to them, this would be done in no distant time as the religious leaders were working in unison, adding that even if a member of the committee is found culpable, he would be handed over to the authorities.