E-Financial
Six Cardinal Sins affecting ATM Accessibility in Nigeria.
“Bauchi Deputy Governor Can’t Access Cash At ATMs”, the headlines screamed on Jul 1 2015. Apparently, there was no money in any of the three ATMs that the Deputy Governor tried, just to access N20k, according to a statement by the Permanent Secretary, Rabi’u Bello.
ATMs are the most popular channel for bank customers
This is indeed a sad commentary for banks in Nigeria, especially against the backdrop of the recent NOI polls on Bank Financial Channels in the country, which revealed that ATMs were the most visible proceed of the banking sector reforms to Nigerians.
According to the survey, of all the bank channels, customers used ATMs 68% of the time compared to just 6% for Internet Banking and 6% for Point Of Sale terminals (PoS) respectively, with most customers using the ATMs more than once a week. The ATM has assumed great importance as the barometer of a bank’s brand as far as customers are concerned.
It is therefore difficult to phantom why banks have not taken advantage of this ubiquitous channel to enhance their brand value and gain customer loyalty.
Given that my company is an active player in the industry as a Value Added Reseller of Wincor-Nixdorf ATMs, I feel obligated to disclose my interest; but it is this same vantage position that affords me the insight to comment on this passionate issue bedeviling Nigeria’s bank customers.
The Six cardinal sins
In my view the unavailability of Banks’ ATM are predicated on six cardinal sins namely; Suboptimal Support Strategy, Low Spread, Low Penetration, Old Systems, Dirty and Mutilated Currency notes, and Techies running the show instead of business savvy personnel.
Suboptimal Support Strategy
The major culprit of ATM unavailability is the suboptimal support strategy of most banks. They are suboptimal because they usually fall on the sword of ‘penny wise and pound foolish’. Consider the following scenarios; a situation where by merely installing appropriate monitoring tools provided by the manufacturers, ATMs can be remotely diagnosed and most times proactively, before a fault occurs. In this situation the fault can be trapped and fixed before it occurs, or in the case where a fault has occurred, the engineer appears at the site with the appropriate spare part, rather than make two trips, one to diagnose and the second to carry the right spare part to fix the problem. By saving on the investment on the monitoring tool, the bank is losing much more on the opportunity cost of unearned fees and more importantly, on brand impairment.
Most banks opt out of weekend support for ATMs in order to save support money. This is akin to cutting down on cleaning at the cinemas at the weekends. This is just so counter intuitive. During the week, the ATM infrastructure benefits from the widespread support from the branches where they are located. The bank’s custodians ensure that the surround environment such as power and networks links are available, and any cash jam or out of service issue is quickly resolved or escalated to the support company. It is during the weekend when that support structure is unavailable that ATM attendance is most required. And it is precisely this critical period that banks chooses not to support their ATMs in order to save cost. What ostensibly happens is that the ATMs breakdown, being mostly mechanical devices, and there is no opportunity for any call-out to repair them. The ATM faults are piled up and reported en-block to the support company first thing on Monday morning, but they become overwhelmed because this bucks the trend of faults forecast under normal circumstances for which they would have been prepared. Being saddled with a ton of faulty ATMs simultaneously is not normal and inadvertently results in shortages of ATM Spares and long wait times. To compound issues, the banks typically do not make it easy for the support partners to have spares on hand by, insisting on maintenance payment in arrears. Maintenance payments in advance will greatly help sufficient spares procurement and readiness to attend to faults on time.
Another ‘catch 22’ situation in the support strategy relates to access of the ATMs for maintenance purposes during the weekend, in the few cases where banks have signed for weekend support. There is the dilemma of having the two people who each have an access key for the ATM, to both be on site, as the keys are simultaneously required to open the ATM from a security perspective. Many of the custodians live very far from the ATMs which keys have been entrusted to them, and so there is an inherent wait time for them to make the long journey to the ATM to open it for the support personnel to have access for repairs, or even for cash loading in the case of a cash out. It may be expedient to zone ATM keys to custodians who live close to the particular ATMs, or make adequate alternate arrangements.
Low Spread
The second cardinal sin is the poor distribution of ATMs across the country, with most of them concentrated around the 5,000 odd bank branches. Going by the statistics of the Central Bank of Nigeria (CBN) that there are 12,000 ATMs in Nigeria, and following the trend of at least two ATMs per branch, leaves only 2,000 ATMs to be distributed across all the other locations requiring cash dispensing in Nigeria. Typically, ATMs should be liberally placed around high footfall areas such as Malls, Markets, Petrol Stations, etc. The realities of distributing only 2,000 ATMs across all these areas are quite stark; not enough to go round. Barely enough to provide two ATMs each, for our 774 Local Government Areas.
Low Penetration
And this leads to the third cardinal sin, low penetration of ATMs where they exist. The story was told around Christmas of 2013, where the only ATMs that seemed to be working on the whole Gbagada axis were the couple at the Charlie Boy Bus stop. Of course the queue had built up to the extent that faint hearted customers rather opted to go without cash than risk the possible consequences of a stampede. The problem could be solved by providing appropriate number of ATMs per location based on a study of the queues. If the intention is to keep the customers from crowding the banking halls, it seems to me a circular argument bickering about the ATM and support costs, because this has to be compared against the cost of a bigger branch and more tellers, with their attendant salaries and benefits should the customers be compelled to go into a branch for lack of adequate ATM channels. The ATM penetration in Nigeria is about 11.4 ATMs per 100k adult population. Comparatively, Indonesia’s penetration of about 37 ATMs per 100k adult population is over three times that of Nigeria. South Africa has 60 ATMs per 100k adult population, while the UK has 124 ATMs per 100k adult population
Old systems
The fourth cardinal sin is over-flogging the ATM well past its ‘use by’ date. Many senior bank officials will typically have their official cars changed after every four years (the ATMs are much less than half the costs of the status cars of the banks’ middle management staff), yet even where statistics show that the cost of repair of a consistently failing old ATM is unsustainable and will be cheaper to replace, there is a deep reluctance to do so. This could perhaps be because the support partners aren’t given the opportunity of slab pricing, where they charge a higher support premium for very old systems. In the end, every shortcut gradually catches up with us. The system is just not able to perform the function for which it was procured, and the customers bear the brunch.
Dirty and Mutilated Currency notes
The fifth cardinal sin is loading the ATM cassettes with currency notes not fit for that purpose. While it is understandable that it is not possible to always have crisp notes in the ATM, every effort should be made to sort and aerate the notes going into the ATM to ensure that that they are fit for purpose, and do not cause cash jams, which throw the ATM out of service, notwithstanding the amount of cash in it. It is common knowledge that bank staff and their friends do somehow find crisp notes for ‘spraying’ at social functions at the weekends. These are the kind of notes that should be loaded into the ATMs and not the unfit ones that will quickly fill the ‘reject bin’ and render the ATM out of service.
Techies running the show instead of business savvy personnel
The sixth cardinal sin which is not limited to banks, is the common mistake of promoting techies out of their area of competence and comfort to business managers. Techies should have their own growth tracks and should aspire to the highest specialist positions where they can continue to usefully contribute to the organization. Having said so, I have seen techies who have imbibed deep management skills and made the cross from the technical line to the business line. These are indeed rare breeds, whose background in both technology and business help them to make better managers. But having pure techies run important businesses such as ensuring that the over 76 million Nigerian bank customers consistently have ATM availability, and the managerial intricacies that this will demand, is not fair to them, nor to the customers. In todays’ cashless Nigeria, e-Banking is going to be the key to the success or failure of a bank, based on her ability to retain customers. The need for this critical Division to be appropriately manned cannot be overemphasized.
If we get these right, then the deputy Governor, and indeed every bank customer will have the true benefit of the use of their ATM cards.
Austin Okere is the Founder of CWG Plc, the largest Systems Integration Company in Sub-Saharan Africa & Entrepreneur in Residence at CBS, New York. Austin also serves on the World Economic Forum Business Council on Innovation and Intrapreneurship.
The Senate yesterday recorded two major milestones in Nigeria’s financial sector, passing a landmark Insurance Regulatory Commission Bill to replace the nearly three-decade-old National Insurance Commission (NAICOM) Act of 1997.
Also in a separate development, the Committee on Banking Insurance and other Financial Institutions, overwhelmingly cleared former Director-General of the Securities and Exchange Commission (SEC) and current Deputy Governor of the Central Bank of Nigeria (CBN), Mr. Lamido Yuguda, for appointment as Chairman of the Board of the Asset Management Corporation of Nigeria (AMCON).
The insurance reform legislation, described by lawmakers as one of the most comprehensive overhauls of Nigeria’s insurance regulatory framework in decades, seeks to modernise regulation, strengthen consumer protection, enhance financial stability and align the nation’s insurance industry with global best practices.
The bill, passed during plenary presided over by the President of the Senate, Senator Godswill Akpabio, followed the adoption of the report of the Senate Committee on Banking, Insurance and Other Financial Institutions chaired by Senator Mukhail Adetokunbo Abiru (APC, Lagos East).
The legislation repeals the National Insurance Commission Act, 1997 and establishes a new Insurance Regulatory Commission with broader supervisory and enforcement powers designed to respond more effectively to the changing dynamics of the insurance industry.
Presenting the committee’s report, Abiru told senators that the existing legal framework had become grossly inadequate for regulating a rapidly evolving insurance sector.
He said: “The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business.”
According to him, although NAICOM had made significant contributions to regulating insurance companies, brokers and loss adjusters while protecting policyholders and enforcing industry standards, its enabling law had failed to keep pace with international developments.
Abiru explained: “Despite its significant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry, exposing numerous gaps in the law, necessitating urgent amendments.”
He disclosed that the proposed law guarantees the independence of the Insurance Regulatory Commission while substantially expanding its powers to supervise operators and safeguard the stability of the financial system.
According to him, the commission would have authority to issue regulations, standards, guidelines and directives, collaborate with domestic and international regulatory institutions, exchange supervisory information and intervene promptly in troubled insurance companies before their problems escalate.
He stressed that the strengthened intervention powers would remove bureaucratic bottlenecks that had previously delayed regulatory actions against distressed insurance firms.
Abiru said the legislation also introduces stricter corporate governance requirements by prescribing higher qualifications for members of the commission’s governing board.
He explained that only individuals with proven competence in insurance, finance, law, risk management and corporate governance would qualify for appointment, thereby ensuring more professional oversight of the industry.
The committee chairman further revealed that the bill significantly strengthens enforcement mechanisms by imposing stiffer sanctions on erring operators.
According to him, the law provides for heavier financial penalties, suspension of operating licences, additional liabilities for defaulting operators and disqualification of persons responsible for the collapse or regulatory failure of insurance institutions from occupying positions within the industry.
Abiru also noted that the legislation broadens the commission’s mandate beyond regulation to include the effective administration, supervision, control, integrity and overall development of insurance business in Nigeria.
He said the proposed change of name from the National Insurance Commission to the Insurance Regulatory Commission would eliminate longstanding confusion about the agency’s role and better reflect its statutory responsibility as the country’s insurance regulator.
Giving insight into the legislative process, Abiru disclosed that the committee subjected the bill to rigorous scrutiny, including a public hearing held on November 12, 2025.
He said more than 50 memoranda and several oral submissions were received from critical stakeholders, including the Federal Ministry of Finance, CBN, Nigeria Deposit Insurance Corporation, SEC, Federal Mortgage Bank of Nigeria, Nigerian Insurers Association, Nigerian Council of Registered Insurance Brokers and the Chartered Insurance Institute of Nigeria. Africans& Diaspora
According to him, the overwhelming consensus among stakeholders was that urgent reforms had become inevitable.
Abiru said: “The inputs made on the proposed bill will go a long way in providing a comprehensive legal framework for the regulation and supervision of all manner of insurance businesses in Nigeria to ensure that the industry is able to successfully compete on a global level and improve international competitiveness of Nigeria’s insurance industry.”
After considering the bill clause-by-clause in the Committee of the Whole, the Senate unanimously passed it for third reading.
Akpabio commended Abiru and members of the committee for championing what he described as a far-reaching reform capable of transforming Nigeria’s insurance industry.
He assured the committee that the National Assembly would continue to enact laws that would strengthen the country’s financial services sector, improve transparency and promote international competitiveness.
The bill will now proceed to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for presidential assent.
After the plenary on Tuesday, the Senate Committee on Banking, Insurance and Other Financial Institutions overwhelmingly cleared Yuguda as Chairman of the Board of AMCON after granting him the rare privilege of a “take a bow and go” screening.
The committee dispensed with the conventional screening process on the grounds that Yuguda had previously appeared before the Senate for confirmation into several strategic public offices and had consistently demonstrated exceptional competence.
Presenting the nomination, the Special Adviser to the President on National Assembly Matters (Senate), Senator Basheer Lado, reminded lawmakers that Yuguda had undergone rigorous screening in the past.
He explained that the latest appearance was simply to comply with the provisions of Section 10(1)(a) of the AMCON Establishment Act, 2019, as amended. Abiru described Yuguda as one of the most trusted public officials appointed by President Tinubu.
He told committee members: “As all of us may recall, the appointee, Mr. Lamido Yuguda, whose résumé is before every member, has appeared before this committee on previous occasions.”
He added: “More recently, he also appeared before us for screening as Deputy Governor of the Central Bank of Nigeria.”
In a light-hearted remark that drew laughter from members, Abiru observed: “If you ask me, I think he is probably the luckiest person in this administration, having been appointed by the same president on three different occasions for three different responsibilities.
“I am sure you will agree with me that he is more than qualified for the role he is about to assume.”
Former Senate Chief Whip, Senator Orji Uzor Kalu, immediately moved the motion for Yuguda to “take a bow and go”.
Kalu said: “President Tinubu has, on three occasions, appointed the same man to important national assignments. I therefore move that Mr. Lamido Yuguda be allowed to take a bow and go.”
The motion was seconded by the committee’s Acting Vice-Chairman, Senator Mohammed Sani Musa, who described the nominee as eminently qualified.
Musa said: “Looking at the résumé of the nominee and considering that Mr. President has repeatedly found him worthy of appointment to critical national offices, there is no doubt that he is eminently qualified.” ExecutiveBranch
The committee unanimously adopted the motion through a voice vote, after which Abiru formally declared Yuguda cleared.
The committee, however, quickly shifted attention to AMCON’s future, with Musa calling for a comprehensive briefing on the corporation’s performance as it approaches its statutory wind-up date in 2030.
He reminded the management that AMCON was established to resolve non-performing loans, distressed banks and systemic financial risks, stressing that lawmakers needed a comprehensive assessment of its achievements and pending obligations.
Musa said: “It has a statutory lifespan and is expected to wind up around 2030. Looking at that timeline, there is a need for this committee to receive an up-to-date report on the status of AMCON.
“We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset.”
Responding, Abiru assured the committee that the requested briefing would be provided.
He said: “I am sure the leadership of AMCON understands the point you have raised, and it is well noted.
“I have no doubt that, in the not-too-distant future, the committee will receive a comprehensive response on the issues you have highlighted.” The recommendation confirming Yuguda’s appointment is expected to be presented before the Senate in plenary for final approval.
E-Financial
CBN Retains Interest Rate at 26.5% as Cardoso Cites Global Uncertainty Despite Inflation Drop
Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the nation’s benchmark interest rate, at 26.5 per cent, citing heightened global uncertainties despite signs of resilience in the domestic economy.
The CBN Governor, Mr Olayemi Cardoso, announced the decision on Tuesday after the conclusion of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja from July 20 to July 21.
Cardoso said the committee resolved to maintain the current monetary policy stance after reviewing domestic and international economic developments.
“The Committee decided to retain the Monetary Policy Rate at 26.5 per cent,” he said.
The governor said renewed geopolitical tensions, particularly in the Middle East, continued to pose risks to global energy prices and inflation, necessitating a cautious approach.
He said the committee also retained the Standing Facilities Corridor at +50/-450 basis points around the MPR.
The Cash Reserve Ratio (CRR) was also left unchanged at 45 per cent for Deposit Money Banks, 16 per cent for merchant banks and 75 per cent for non-Treasury Single Account public sector deposits.
According to Cardoso, the MPC’s decision followed an assessment of the balance of risks confronting the economy.
“Although headline inflation moderated marginally in June 2026, global uncertainties have intensified, largely due to renewed hostilities in the Middle East,” he said.
He added that despite the challenging global environment, Nigeria’s economy had remained resilient, supported by ongoing structural reforms.
The governor noted that the committee would continue to monitor economic developments and adjust policy measures when necessary to maintain price stability.
The latest decision represents the second time in 2026 that the MPC has maintained the benchmark interest rate at 26.5 per cent.
The announcement came shortly after the National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation rate eased slightly to 15.91 per cent in June 2026 from 15.93 per cent recorded in May.
National Insurance Commission (NAICOM) has declared that it has no plans to extend the 31 July 2026, deadline for the ongoing insurance industry recapitalisation exercise, asserting that the date is firmly rooted in the new Insurance Act.
Speaking at the investiture of Mr Akinjide Oluwarotimi-Orimolade as the 53rd president of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, Olusegun Omosehin, commissioner for Insurance, emphasised that the exercise remained central to building a resilient market.
With less than two weeks left before the window closes, the regulator commended operators making steady progress but stressed that the timeline must be treated with absolute urgency.
Omosehin said, “A stronger capital base must translate into stronger service delivery, prompt claims settlement, improved consumer protection, and a market that Nigerians can trust.
“The industry’s future will be determined by the quality of leadership, depth of competence, and discipline in serving the public interest.”
The ongoing exercise follows the historic signing of the Nigeria Insurance Industry Reform Act by President Bola Tinubu, which effectively repealed the outdated 2003 Insurance Act. Under the new framework, the sector is transitioning from a static baseline model to a dynamic risk-based capital structure. This regulatory shift aims to fortify operators against systemic economic shocks and better position the industry to contribute significantly to the Federal Government’s target of a $1tn economy.
Consequently, the exercise requires a massive capital lift across the board, pushing life underwriters from N2bn to N10bn, non-life operators from N3bn to N15bn, and reinsurers from N10bn to N35bn.
The push comes amid strong legislative alignment, with the National Assembly pledging its full backing to ensure these reforms translate into deeper market penetration.
Also speaking at the event, Ahmadu Jaha, chairman of the House of Representatives Committee on Insurance and Actuarial Matters, reaffirmed the parliament’s dedication to providing the necessary legal frameworks to drive sector growth.
Jaha said, “As Chairman of the House Committee on Insurance and Actuarial Matters, I wish to reaffirm the unwavering commitment of the House of Representatives to supporting legislative initiatives that will strengthen the insurance industry, improve regulatory effectiveness, enhance consumer protection and promote wider insurance penetration across Nigeria.
“The National Assembly recognises the critical role of the insurance industry in mobilising long-term capital, financing infrastructure development, protecting businesses and households against unforeseen risks, promoting financial stability and driving sustainable economic growth.”
Responding to the charge, the newly inaugurated Orimolade, president, CIIN, stated that his administration would aggressively protect the public interest by advancing the core mandates of the institute.
Orimolade promised “to build on the programmes of my predecessors while evolving new ideas that can further increase insurance education, awareness and acceptance across the country.”
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