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.
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.”
Federal Competition and Consumer Protection Commission (FCCPC) has resumed implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
This follows the judgment delivered yesterday by Justice A.L. Allagoa of the Federal High Court, Lagos, in Suit No. FHC/L/CS/760/2026 instituted by the Wireless Application Service Providers Association of Nigeria Ltd/Gte (WASPAN).
In the ruling, the Court dismissed the Plaintiff’s Originating Summons in its entirety, declined all the reliefs sought, and upheld the validity of the DEON Regulations, holding that they were made pursuant to the FCCPC’s statutory and constitutional powers and are therefore intra vires the Commission.
The Court also upheld the validity of the specific provisions of the Regulations challenged in the suit and consequently discharged the interim ex parte order that had restrained implementation and enforcement of the Regulations.
Accordingly, the legal impediment that had necessitated the Commission’s temporary suspension of implementation and enforcement of the DEON Regulations has been removed, and the Regulations are once again fully operational and enforceable.
WASPAN had challenged the Commission’s authority to issue and implement the DEON Regulations. Upon being served with the Court’s interim order in April 2026, the FCCPC immediately suspended implementation and enforcement of the Regulations in full compliance with the Court’s directive, consistent with its commitment to the rule of law and respect for judicial authority.
Meanwhile, the FCCPC has welcomed the judgement.
Reacting, Ondaje ljagwu, director of Corporate Affairs, FCCPC, said: “The Commission has always maintained that the rule of law is fundamental to effective regulation and good governance. When the Court issued its interim order, we immediately suspended implementation of the Regulations in full compliance with the Court’s directive. Now that the Court has affirmed the validity of the DEON Regulations and delivered judgment in favour of the Commission, we will continue to discharge our statutory responsibilities faithfully, professionally and in accordance with the law.
“The DEON Regulations are designed to promote responsible lending, improve regulatory accountability, curb unfair and exploitative practices, and strengthen consumer protection in Nigeria’s digital lending market. Our objective has always been to ensure that innovation and financial inclusion flourish within a transparent, fair and accountable regulatory framework that inspires confidence among consumers, investors and responsible operators alike.
Nigeria Deposit Insurance Corporation (NDIC) has urged youths to shun investment scams and embrace the habit of saving.
NDIC said that for a nation to be prosperous, its citizens must learn to build legitimate wealth through savings and then advance to investment.
Mr Adegbenga Fagbuyi, assistant director, Communication and Corporate Affairs, NDIC, made the remarks while addressing students of Lagelu Grammar School, Ibadan, during the 2026 Financial Literacy Day.
Delivering his speech on “Smart Money,” Fagbuyi highlighted the importance of having basic knowledge of the financial system, making sound financial decisions, understanding the benefits of saving in banks, setting financial goals, maintaining financial discipline, and avoiding Ponzi schemes that promise high returns.
Fagbuyi said youths are among the major targets of the government’s financial inclusion drive, adding that the Financial Literacy Day formed part of activities marking Global Money Week, adopted by the Bankers’ Committee in Nigeria as a platform for mentoring youths on savings and investment.
He said, “The government wants everybody to be participants in the financial sector. But how can you be a participant if you don’t know how to save? How can you be a participant if you cannot convert your savings into an investment? So, most importantly, youths are one of the major targets of the financial inclusion drive of the government.”
Fagbuyi described financial inclusion as bringing everybody into the financial safety net by encouraging participation in banking, insurance, pensions, and the capital market.
He stressed that the government does not want youths to become adults who lack knowledge of safe banking practices, insurance, and the capital market.
“Government does not want them to grow old, to become adults who do not know about savings, safe banking habits, insurance, and the capital market. That is why we go to schools to sensitise students to all these basic financial matters, particularly savings, so that our students can begin to learn to save, learn credible investment habits through which they can be making legitimate income.
“We also educate them about the deposit insurance system administered by NDIC. When you save in banks, the banks are supervised and regulated. And if eventually they fail, you will not lose your money. That is what NDIC does,” Fagbuyi said.
He revealed that the sensitisation programme, which started about 10 years ago and is organised by the Bankers’ Committee, comprising the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all the deposit money banks in Nigeria, has been held across states nationwide.
He said, “Minimum, every year, we go to 10 states. And we normally sensitise 200 students in each school. So this year, that means we are targeting 2,000 students.”
Fagbuyi, however, said the objective of the programme is not to cover all schools across the country but to set a standard for state governments and schools to replicate.
“But I must emphasise that the objective is not to cover all schools. It is to set a standard for state governments and for schools to replicate. You agree with me that we cannot be everywhere.
“But as a partner, as a key stakeholder in the financial inclusion drive of the federal government, we go to states to showcase what the government’s intention, so that states and schools can replicate. So it is on this note that we always urge states’ Ministries of Education, Science and Technology to replicate and expand these programmes across their respective states.”
In his address, Olusegun Olayiwola, Oyo State Commissioner for Education, Science and Technology, represented by Alhaji Lukuman Kareem, permanent secretary, Education Inspectorate, Ibadan North, commended the NDIC for selecting a school in Ibadan for the financial literacy sensitisation programme.
He noted that such initiatives must go beyond the classroom to shape young minds, adding that children cannot achieve expected outcomes unless they are properly guided.
“That’s why we significantly appreciate the efforts of the Bankers’ Committee, NDIC, the Central Bank of Nigeria, and all other members for this,” he said.
The commissioner charged the students to take the lessons seriously, noting that opportunities lost may not be easily regained. He also advised the NDIC to expand the programme to include students from neighbouring schools in future editions to maximise its impact without additional transportation costs.
Additionally, Olayiwola urged teachers to cascade the training to other students, who should in turn enlighten their siblings at home.
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