Nigerian banks asked to remove ATM’s

Nigeria’s central bank has commended the efforts of most Nigerian banks to reach the un-banked segment of its population through the deployment of Automated Teller Machines (ATMs) across the nation.

However, the Automated Teller Machines Director of Banking Operations, James Olekah, reminded banks that the deployment of the electronic gadgets in public places is beyond the mandate given to banks as stipulated in the policies guiding the operations of ATM Consortium (ATMC).

He noted that banks are competing with ATMC in its sole mandate of deploying ATMs in public places.

The CBN expressed concern at indiscriminate deployment of bank’s ATMs in public places (particularly hotel lobbies and airports).
Consequently, banks are directed to restrict further deployment of ATMs to their premises and to withdraw bank ATMs in public places to their premises before June 30, 2009.

The CBN also officially made public its decision to begin the licensing process for an additional ATM Consortium with the sole mandate to deploy ATMs in public places thereby bringing to two the number of ATM consortia in the economy.

The ATMs have brought a new dimension to banking in Nigeria, making banking services and its delivery convenient and accessible. There is a growing demand for more ATMs across the country as the present distribution of bank ATMs are concentrated in Lagos and Abuja regions.

While bank customers are likely to feel the adverse effect of the withdrawal of bank’s ATMs from public places, it is expected that the present policy would give the ATM consortia in the country a business environment conducive to profitable deployment of their resources.

Hence, the number of ATMs and Point of Sales (POS) systems available in the country is expected to increase significantly. This technological development is also likely to boost other sectors of the economy that rely on ATMs and POS as business electronic distribution channels and payment systems. Such prospective beneficiaries include the telecommunication (recharge code distribution) and lottery (ATM/POS lotteries) industries.