The motion moved by a member, Marcus Onobun, drew the attention of the House to a circular by the Central Bank of Nigeria to that effect.

Lawmakers were worried that this would impose additional financial burdens on Nigerians.

The House asked the CBN to suspend the policy pending proper engagement with the relevant committees on banking, finance, and financial institutions.

Recall on February 10, 2025, the CBN announced that charges would apply anytime customers use the ATMs of banks other than theirs.

“The three free monthly withdrawals allowed for remote-on-us (other bank’s customers/not-on-us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” the bank said in a circular to financial institutions.

The CBN directed banks and other financial institutions to apply the following charges with effect from March 1, 2025.

The apex bank said while customers withdrawing at the ATMs of their banks and financial institutions won’t be charged, customers withdrawing from the ATM of other banks would now be charged ₦100 per every ₦20,000.

The CBN said for off-site ATMs — automated teller machines not on a bank’s premises – like those at shopping malls, eateries and other public places — a surcharge of not more than ₦500 per every ₦20,000 will apply in addition to the statutory ₦100 fee for withdrawals by customers of other banks’ ATMs.

The apex bank attributed the reviewed charges to rising costs and the need to improve the efficiency of ATM services in the country.

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service,” the circular stated.

Criticisms have trailed the new policy but the apex bank insisted that its policy is mutually beneficial to customers and commercial banks.

The goal?

To reduce operational costs for banks and improve ATM access nationwide.

This announcement has sparked conversations among consumers, financial institutions, and industry experts.

While the CBN policy is positioned as a solution to Nigeria’s ATM challenges, a deeper issue remains unaddressed—transaction inefficiencies.

For years, Nigerian banking customers have struggled with ATM-related frustrations, from failed withdrawals to slow dispute resolutions and system downtimes.

Will adjusting fees make ATMs more accessible? Possibly. But will it make transactions faster, more reliable, and hassle-free? That’s a different question.

The Real Issue: Inefficiency Over Cost

Interestingly, NIBSS reported that active bank accounts reached 311.65 million as at December 2024. However, Nigeria has less than 22,000 ATMs, serving a population of over 200 million people and access to cash remains difficult due to frequent cash shortages, connectivity failures, and reconciliation delays.

For many Nigerians, ATM challenges extend far beyond withdrawal fees. In this 2024 report, nearly 30% of ATM transactions failed due to network issues, cash shortages, or other operational failures.

The current system faces persistent challenges, including frequent transaction failures where customers are debited without receiving cash, leading to frustration and financial inconvenience. Dispute resolution is also slow, with refunds for failed withdrawals often taking days or even weeks to process.

Additionally, the limited availability of ATMs—due to high operational costs—prevents banks from expanding their networks, resulting in long queues and restricted access to cash for many customers.

These issues indicate that while fee adjustments may increase ATM installations, they won’t necessarily make transactions more efficient or customer friendly.

Why Fees Alone Won’t Solve the Problem

The new policy is expected to help banks offset the rising cost of ATM maintenance and cash handling, potentially leading to an increase in ATM installations across the country.

However, simply increasing the number of ATMs or the cash within them without improving their reliability will not solve the core issue.

Expanding the number of ATMs won’t be effective if transaction failures remain frequent. Lower fees will have little impact if customers still spend hours trying to withdraw cash. Even with improved infrastructure, adoption will be limited if trust in ATM reliability remains low.

For CBN’s initiative to truly succeed, banks need to go beyond just cost recovery and expansion—they must focus on efficiency, security, and automation in ATM transactions.

Technology as the Missing Link

One of the biggest gaps in Nigeria’s financial system is the lack of real-time, automated transaction processing for ATM withdrawals.

This is where technology can play a transformational role. Several innovative financial solution technologies have the potential to revolutionize ATM efficiency.

However, advancements like AI-driven fraud detection can enhance security by preventing unauthorized withdrawals, while real-time settlement solutions can eliminate delays in refunding failed transactions, improving overall customer experience and trust in the system.

Some Nigerian banks have already adopted blockchain-powered solutions for ATM transactions. These systems enable instant reconciliation and faster refunds when failures occur. Zone Payment Network, among others, has demonstrated how blockchain can streamline payment processing, reducing disputes and enhancing customer experience.

By integrating blockchain and real-time payment infrastructure, financial institutions can increase efficiency, eliminate delays, and restore consumer trust in ATM transactions.

A Holistic Approach is Needed

CBN’s new policy is a step in the right direction, but for meaningful, long-term improvements, Nigeria’s banking sector must go beyond fee adjustments.

A combination of regulatory policies and technological innovation is essential to create a system where ATM transactions are not just affordable—but also seamless, fast, and reliable.

To achieve this, key stakeholders must prioritize real-time reconciliation to ensure transaction failures are resolved instantly. Investing in decentralized financial infrastructure can help reduce transaction bottlenecks, while leveraging AI and automation will optimize ATM uptime and minimize failures, ultimately improving efficiency and customer experience.

The Bigger Question

As CBN works to improve ATM accessibility through fee restructuring, financial institutions must consider the bigger picture—does Nigeria’s ATM system need more machines, or does it need better technology to ensure smooth transactions?

If we truly want to enhance financial services, the conversation must shift from fees to efficiency.

Would better technology adoption make a bigger difference than fee restructuring?

Starting March 1, 2025, Nigerians won’t need to worry about saving money, because their banks will be doing the saving for them—one ATM withdrawal at a time—just that you can never access the funds. Sounds like a well-planned heist, right? Except this one is perfectly legal.

Nigerians will now be paying through their noses just to access their own funds, thanks to the Central Bank of Nigeria’s (CBN) latest policy blessing the banks with a multi-trillion-naira windfall in ATM charges. 

Let’s break it down.

The Billion-Naira Cash Grab Disguised as Policy

Under the new policy:

• On-Us Transactions: Withdrawals at your bank’s ATM? Free. (Phew.)
• Not-On-Us Transactions: Withdraw at another bank’s ATM? That’ll be ₦100 per ₦20,000.
• Off-Site ATMs: Withdraw from an ATM that isn’t inside a bank? That’s ₦100 per ₦20,000 withdrawal, plus a surcharge of up to ₦500.
• International Withdrawals: Fees are “based on cost recovery,” meaning whatever the international acquirer charges will be passed directly to you.

At first glance, ₦100 per withdrawal doesn’t seem like much—until you do the math.

How Banks Will Make ₦2.2 Trillion from Your Money

…and that’s just based on one withdrawal per active account a month

With 311.6 million active bank accounts in Nigeria, even a single monthly withdrawal per account could generate huge profits:

• Domestic Withdrawals: ₦100 x 311.6 million = ₦31.16 billion per month.
• Off-Site ATM Withdrawals: ₦600 per withdrawal x 311.6 million = ₦186.96 billion per month.

That’s over ₦2.2 trillion per year—not from lending, not from business investments, but simply from letting people access their own money.

And all this in an economy where inflation is running at over 30%, unemployment is skyrocketing, and the new ₦70,000 minimum wage barely covers rent and food.

If a worker withdraws ₦80,000 in a month from off-site ATMs, they could pay up to ₦2,000 in fees—nearly 3% of their salary. Meanwhile, banks continue to report record profits.

From Banking to Legalised Extortion

Globally, banks earn primarily from lending. But in Nigeria, financial institutions have found a more innovative model: charging customers for every financial move they make.

• In the first quarter of 2024, top-tier banks raked in over ₦125 billion from electronic banking charges.
• With just 16,714 ATMs for over 200 million Nigerians, long queues and machine downtime are already the norm. This policy will push more people towards expensive PoS withdrawals, where agents also charge their own fees.
• By contrast, in countries like Kenya, digital banking is encouraged through zero ATM withdrawal fees for many account types. Even in South Africa, withdrawal charges are significantly lower. So why are Nigerian banks making their customers pay so much for basic services?

The CBN claims these charges will prevent customers from breaking withdrawals into smaller amounts. But let’s be honest: This is just another revenue stream for banks, cleverly wrapped in the language of “financial policy.”

The Central Bank of Nigeria, rather than acting as a regulator in the interest of financial inclusion, seems to be tilting towards policies that favour banks at the expense of customers. 

The question is: why is there no cap on ATM charges? Why isn’t there a push for alternative, low-cost cash withdrawal solutions?

I mean! There is no upper limit or maximum limit on the charges for ATM transactions. The fees can vary and may increase based on different factors, such as the amount of money withdrawn or the location of the ATM. Essentially, there is no fixed maximum charge that customers can be guaranteed not to exceed. 

This means you might encounter different fees depending on which bank’s ATM you use or whether the ATM is located on-site (at a bank branch) or off-site (at a different location, like a shopping mall). 

Moving Towards Digital, or Just Financial Exclusion?

Supporters say that higher ATM fees will encourage electronic transactions—but here’s the problem:

• Digital Payments Are Not Universal: Many Nigerians, especially in rural areas, still rely on cash for daily transactions.
• Mobile Network Issues: Failed transfers and delayed alerts are common, making cash a safer option for many.
• Unbanked Population: With 26% of Nigerians still unbanked, these charges could further discourage financial inclusion.

So, what’s the alternative? Fintechs like Opay, PalmPay, and Kuda may benefit as Nigerians search for less exploitative banking options. But until digital banking becomes truly reliable, these ATM charges are nothing short of a tax on poverty.

So, Who Will Save Nigerians from Their Own Banks?

As it stands, the biggest threat to your finances isn’t inflation, unemployment, or even government policy—it’s your own bank.

At what point does banking stop being a service and start looking like state-approved extortion? Nigerians are being charged simply for existing within the banking system.

If the CBN does not cap these fees or introduce customer-friendly alternatives, we may soon see a mass exodus from traditional banking. The very institutions meant to safeguard our money seem more interested in finding new ways to take it—so as to “ease costs of operations.”

Until then, be prepared: In Nigeria, it now costs money to withdraw your own money.

The report, titled, “In Pursuit Value”, stated that the figures were obtained from surveyed customers of Nigerian and Ghanaian banks who narrated their experiences during the year 2023.

According to the survey, ATM usage in Nigeria has witnessed a notable decline due to the regular unavailability of cash in many bank ATM stands.

The multinational consulting firm further stated that medium digital transactions dropped from the top to outside the top 10 in the survey, indicating cash dependence on Point of Sales (PoS) operators.

It stated, “Currently, four in 10 customers report weekly ATM usage, a notable decline from the previous seven in 10 over the last few years. This decline in ATM usage coincides with a significant rise in agency banking usage, with six in 10 customers frequenting bank agents every week.”

The report further noted that the rise in agency banking emphasises the continued popularity of cash, underscoring customers’ quest for more readily available cash options, primarily driven by the popularity of bank agents across the nation.

Furthermore, the survey disclosed that payment via digital mediums rose by 52 per cent in 2023 between January and October, according to NIBSS data.

It said that the spike in digital payments was triggered by the cash crunch, occasioned by the CBN’s naira redesign policy in the first quarter of 2023.

It stated;

“Consequently, digital payments surged, marking a notable 52% increase in total NIBSS Instant Payment transactions by October 2023 compared to January of the same year. This was triggered by the Central Bank of Nigeria’s initiative to overhaul the Naira, aiming to regulate cash circulation and reduce reliance on physical currency.”

In October 2022, the Central Bank of Nigeria announced its move to redesign the naira and encourage cashless transactions in the country.

The policy which was badly implemented led to a decline in economic activities, causing pains and grief to Nigerians.

It further explained that the rise in digital payment overwhelmed Tier-1 banks with multiple cases of transaction failure but fintechs rose to the challenge leading to a significant change in customers’ preferences.

According to the survey, 58 per cent of respondents switched banks or had reasons to change to fintechs during the period. This presents a radical shift from the 15 per cent who switched banks in 2022.

Also, around 13 per cent of retail banking respondents now rely on fintech for their primary banking needs from the four per cent who made the switch in 2022. (Punch)

Verve International, Africa’s first and largest domestic payments scheme has yet again attained a remarkable new milestone in its business, firmly consolidating its growing market share in Nigeria – in terms of card issuance and transactions.

Verve now has over 50 million issued payment cards to date. This development comes barely a year after the scheme announced it had issued 35 million cards in Nigeria in March 2022, translating to 42% growth in issuance volumes YoY.

Verve has become the payment card of choice across various tiers of banking service and particularly within the burgeoning fintech space in Nigeria.

It would be recalled that in October 2022, Verve and Opay announced a significant partnership in Nigeria, rolling out the OPay Verve Instant Debit Card, directly linked to OPay user wallets, thereby making it easy and convenient to make payments for goods and services, essentially empowering millions of Opay users to transact with Verve cards directly from their wallets

Verve, as Africa’s premier and leading domestic payment cards scheme is focused on addressing peculiar market challenges in Africa by providing secure and cost-effective payment options for individuals and businesses to exchange value.

Verve offers both virtual and physical cards that facilitate payment for an increasing number of international services in local currency, and has made significant progress in this regard, having achieved merchant acceptance with platforms such as Netflix, Showmax, Amazon Prime, Facebook, Microsoft, Uber, and Flywire, to mention a few.

Verve also has a number of major partnerships in the works, underscoring its strong resolve to continue to drive such partnerships that provide users in Africa convenient opportunities to access global services in local denominations.

On the African front, Verve cardholders are provided with the benefit of using the Verve card in Nigeria and over 21 other African countries, underscoring the company’s resolve to ensure the seamlessness of transactions across the continent, particularly for the critical mass of consumer demographics, whilst driving value and efficiency for African financial institutions.

Particularly noteworthy, are rapidly expanding issuing and acceptance partnerships across East Africa, including major financial institutions such as the 2 largest financial institutions KCB Group and more recently Equity Bank.

On a global perspective, through strategic partnerships with Discover Financial Services, Verve cardholders are able to perform transactions and make payments while outside Africa, using their Verve Global Cards. The Verve Global Card from the Discover partnership is accepted in 185 countries that include the United States of America, United Kingdom, South Africa, and the United Arab Emirates (UAE).

Verve has significantly expanded its footprints in the East African region, deepening its partnership with KCB Bank of Uganda in a move that will see the acceptance of the Verve Card on KCB Bank’s widespread and strategically distributed Point of Sale (POS) merchant network across the region, in addition to a more recent partnership with Equity Bank Group announced in June 2022, which saw Equity also become an acquirer for Verve cards, adding to its wide portfolio of cards accepted by all Point-of-Sale (POS) machine locations and ATMs countrywide.

Speaking on this latest business milestone Vincent Ogbunude, Chief Executive Officer (CEO) for Verve International, stated that Verve continues to provide innovative ways to make transactions and payment more secure and convenient for our customers across Africa and beyond.

He said;

“As the progressive shift towards cashless payments accelerates, and in view of the peculiarities of the markets in which we do business, it has become important that we continue to consolidate in delivering global-standard payment solutions tailored to economic and operational realities of the environment, whilst doubling-down on value-adding partnerships that ensure we scale our impact and turbo-charge financial inclusion on the African continent…”

“13 years ago, we defied daunting odds and set out to chart a course for a brave new world of payments in Africa. Today we are thoroughly delighted and proud to celebrate this phenomenal milestone of 50 million cards and counting, which effectively positions Verve as the leading payment cards scheme in Africa’s most significant consumer market.”

Verve international, a subsidiary of the Interswitch Group, Africa’s leading integrated digital payments and commerce enabler is the first EMV-certified pan-African domestic payment card scheme (a subsidiary of the Interswitch Group), issuing cards and payment solutions to individuals, issuers, and organizations; and remains committed to pushing the bounds in terms of customer experience and payment possibilities.

Cardholders have come to regard Verve as a safe, convenient and reliable payment solution for everything payment.

Verve cards can be used across a wide range of payment channels like Point of Sale (POS) terminals, Automated Teller Machines (ATMs), Agency banking channel, Web / eCommerce, and Mobile Apps

On Wednesday, the commercial banks in the country were granted permission to start issuing multipurpose cards that unify ATM access and the National Identity Number (NIN) into a single card.

This decision, announced by the Federal Government, aims to streamline identification and banking services while providing significant benefits to Nigerian citizens.

The move comes as a response to the increasing demand for physical NIN cards, particularly among rural residents.

By collaborating with NIMC and leveraging the existing infrastructure of commercial banks, the government seeks to simplify citizens’ lives and promote financial inclusion.

Benefits for Nigerians

The introduction of multipurpose cards presents numerous advantages for Nigerians. First, individuals will no longer need to carry separate cards for banking transactions and identification purposes.

This consolidation of services into a single card not only enhances convenience but also reduces the risk of misplacing or losing important documents.

Moreover, the issuance of these multipurpose cards at no cost eliminates any financial burden for citizens who may have previously been deterred from obtaining the physical NIN card due to associated fees.

Streamlining the Process

To ensure a smooth implementation, the Federal Executive Council, led by outgoing President, Muhammadu Buhari, approved the decision after a meeting.

Remember, the memo from the National Identity Management Commission catalyzed allowing banks to print these innovative multipurpose cards.

Minister of Communications and Digital Economy, Professor Isa Pantami, emphasized that the cards would serve as both a national identity card and a bank card, seamlessly integrating ATM functions from major providers like Mastercard and Visa.

Collaboration and Data Protection

Recognizing the importance of privacy and confidentiality, the NIMC and the Central Bank of Nigeria have signed a nondisclosure agreement, assuring the protection of the personal information of card applicants.

The process of obtaining the multipurpose card involves banks connecting to the NIMC database to verify individual details. Once the verification is complete, the card will be printed and issued immediately, providing a swift and efficient experience for citizens.

According to data as of January 2023, the commission was able to enroll 21.3 million people to the database in 2022, which made the country close last year with 94,037.793. Notably, as of January 2022, the number of NIN issued was 72,700,360.

Expanding Integration

In addition to the introduction of multipurpose cards, the Federal Executive Council also approved the deployment of an automated system that integrates NINs with individual SIM cards.

This move aims to simplify the process of linking NINs to SIM cards and further enhance the implementation of the policy.

The government’s commitment to embracing technological advancements highlights its dedication to improving efficiency and promoting a seamless convergence of identity verification and banking services.

On the benefits of the NIN-SIM integration, the Nigeria Communications Commission (NCC) the exercise will significantly enhance national security as NIN is the primary identity for Nigerians, stressing that in line with Federal Government’s commitment to ensure that Nigeria deploys technology to improve service delivery, the NIN-SIM database will enhance citizens’ access to government services

Conclusion

The Nigerian government’s decision to introduce multipurpose cards that combine ATM access and the NIN represents a significant leap forward in simplifying identification and banking processes for its citizens.

This initiative streamlines services, reduces the need for multiple cards, and offers a convenient solution to meet the demands of both urban and rural populations.

By leveraging the collaboration between the NIMC and commercial banks, the government aims to create a comprehensive and efficient card that unifies ATM access and NIN functions.

This development signifies the government’s commitment to leveraging technology for the betterment of its citizens’ lives and promoting financial inclusion in Nigeria.

However, the speedy and smooth implementation of this initiative remains a concern.

Justice Godfrey Okamgba writes on the challenges faced by Nigerian bank customers, the questionable profitability derived from failed transactions, and the role of the Nigeria Inter-Bank Settlement System (NIBSS) in addressing these issues.

Customers’ Frustrations

Abdullah Oladipo has been struggling for over two weeks to recover his funds from Access Bank following a failed transfer. Abdullah is an avid football betting enthusiast who attempted to deposit N10,000 into his Sportybet wallet using his mobile app. Despite being debited, the money did not appear in his wallet.

“I have sent several emails to Access Bank asking for a refund. I have spoken to their customer representatives, and they keep saying that the transfer was successful, but it never reflected in my Sportybet wallet, Abdullah told TechEconomy.

Despite reaching out to customer representatives at a Sportybet, Abdullah claimed that they were unable to track the transaction and advised him to contact Access Bank for a refund. Frustrated with the lack of progress, Abdullah described the entire process as a fruitless back-and-forth.

This is one of the many ugly stories Nigerians share daily about traditional banks. A critical look at the social media pages of almost all the big traditional banks shows that there is a huge lacuna in terms of customer satisfaction.

As a common ugly occurrence in the banking sector, reversals are an issue that takes weeks to solve, but many Nigerians suspect that the trend of failed transactions has become an income stream for the banks. 

Godman Oman finds himself in a frustrating situation as he waits for a bank reversal that has now exceeded 10 working days. This extended delay has led him to contemplate a critical question: What if this transaction had been an emergency?

Godman said Nigerian banks must awaken to the gravity of the situation. While the Central Bank of Nigeria preaches the virtues of a digital economy, it is disheartening to witness the evident unpreparedness of our banks to meet the increasing demands of this digital era, he said.

Another victim of a failed transaction is Abiodun Adedeji, a Real-Estate Investment Advisor who claims that GTB is yet to refund his money for five months. 

“It’s crazy what the Banks are doing to the Nigerian people.  No form of apology for this failure that has been going on for more than 5 months now,  it has caused the death of some Businesses, the death of sick people that need finance in the hospital, and all.

“I credited my mum for HMD, to thank her, but till today @GTCO has not credited her nor refunded me. This same GTB debited me last year without any transaction and has not been refunded till today.”

Banks Keep Cashing Out

Out of the ten most profitable public companies in Nigeria, according to StatiSence, five are banks – Guarantee Trust Bank, Access Bank, Stanbic ICT, United Bank for Africa, and Zenith Bank. 

GTB generated N490.13 billion and had a profit margin of 34.52 percent. Stanbic IBTC made a 28.10 percent profit margin from N287.53 billion. Zenith generated N921.13 billion and a 24.31 percent profit margin. Access Bank generated N1.33 trillion with 11.44 percent as profit. UBA made N748.29 billion and 22.76 percent profit.

These banks defy many odds associated with running a business in Africa’s biggest economy: inflation, a spike in diesel prices combined with foreign exchange scarcity, and high input costs forced some firms to close shop while many others struggled to stay afloat.

Analysts at Tekedia argue that banks thrive not primarily due to hard work or innovation, but rather due to a system that heavily favors them. With minimal effort, they can still generate substantial profits. It is a rarity to come across commercial banks that do not report profitability.

“Our market system is broken, just like the Nigerian State, so profits and advancements aren’t necessarily tied to the ingenuity and excellent execution, rather a case of aligning with the right forces, and your small hustle will balloon in profits.”

Reports show that nine of Nigeria’s largest deposit money institutions generated N554.23 billion in fees and commissions in 2021. The difference between this and their 2020 revenue of N428.32 billion is 29.4%.

Access Bank Plc, Zenith Bank Plc, Guaranty Trust Bank Limited, United Bank for Africa Plc, First City Monument Bank, Stanbic IBTC, Wema Bank, Sterling Bank, and Fidelity Bank Plc are the banks in question.

Net fee and commission income banks’ annual financial statements ended December 31, 2021, were combined to arrive at a total of N554.23bn.

NIBSS’s Role and Challenges

The Nigeria Inter-Bank Settlement System (NIBSS) serves as a vital platform for the clearing and settlement of inter-bank transfers and payments. 

This institution plays a crucial role in facilitating seamless interbank transfers and payments, yet its operational disruptions have caused significant inconveniences. It has been plagued with frequent downtimes since last year, hindering its ability to automatically reverse unsuccessful transactions.

The continuous occurrence of dispensing errors and the absence of a reliable system for reversing failed transactions have placed the blame squarely on NIBSS.

Many Nigerians are left frustrated by the inability to rectify transaction errors promptly, leading to customer dissatisfaction and mistrust in the system.

TechEconomy gathered that upon any failed transaction, the NIBSS platform is supposed to reverse it. However, a bank official said “But the non-reversal has put our customers against us. Of course, we are not blaming customers because they only know us, not NIBSS and the intricacies of the electronic payments system.”

Addressing the Challenges

NIBSS must recognize the significance of its role in the Nigerian financial ecosystem and take decisive action to rectify the current challenges. By prioritizing system stability, transaction reversals, and effective communication, NIBSS can regain confidence from banks, merchants, and customers alike. Ultimately, a reliable and robust NIBSS platform will contribute to the overall growth and development of the Nigerian financial sector.

“Nigerian banks: what is going on? Transactions have been failing and reversals are now a constant. This MUST be fixed urgently. Stop paying dividends to your investors and invest some of your profits in better technologies,” Professor Ndubuisi Ekekwe, Chairman Fasmicro noted.

“I understand that NIBSS is part of this weak link – and if that is the case, inject funds into NIBSS and evolve the ownership. Stop these reversals; they’re affecting our operations in Nigeria.”

Ibukun Olaniyan, Operational Risk Analyst, LOTUS Bank said evolving the NIBSS leadership remains imperative as everyone has a role to play in ensuring seamless transactions across boards. 

“There are interdependencies and links between every payment system when one is down, the processors and end users would experience transaction failure. This will affect all service users(of any institution)”

According to Ibukun, industry regulators should also be involved in ensuring seamless transaction processing by developing and enforcing policies and frameworks that will provide direction and ensure all necessary services record 100% uptime.

“One of those policies could be on DR, routine upgrades, patches, staffing, and affordable technology. Achieving a stable system and services is an intentional effort and the regulators must make this a top priority to instill confidence in e-payments as we lean towards cashless policy.”

Fintechs 

Nigerians have started seeking alternate channels, this was most evident when the likes of Opay, Palmpay, and Moniepoint experienced a surge in the number of accounts that were opened during the case crunch few months when almost all the digital channels from traditional banks were down. 

Fintech businesses have emerged as disruptive forces, utilizing technology to offer the general public cutting-edge financial services, particularly to individuals who were previously underserved by traditional banks. They have launched technology-driven financial services such as mobile banking apps, peer-to-peer lending platforms, and digital payment systems. 

Nelson Offor, former Data Analyst at UnikHeights Services Ltd said the sooner the banks realize that customers no longer need a bank they just need banking, the better.

“According to a global survey, 54% of consumers trust at least one tech company more with their money than banks. Competitors are fast emerging in the financial services space to satisfy unmet customer demand through disruptive business models.” 

According to Nelson, it is evident that financial services incumbents are largely unable to adapt to changing consumer preferences, including a desire for personalized and low-cost options, seamless transactions, and hyper-convenience. 

“The incumbents have a choice to either own the future or get disrupted by it.”

In conclusion on the failed transactions, customers struggle with the ongoing problem of unsuccessful transactions notwithstanding the financial success of Nigerian banks. Concerns about the banks’ accountability and dedication to customer happiness are raised by the disparity in fortunes. 

The Nigerian banking sector may promote trust and offer smooth transactions by putting a priority on system stability and good communication while also addressing the difficulties faced by NIBSS, thereby assisting the nation in its transition to a cashless economy.

Some bank staff who spoke to TechEconomy on Monday said ever since the Supreme Court ruled that the old notes will remain legal tender until December 31, 2023, the CBN hardly delivers the new notes to commercial banks. 

Nigerian deposit banks have been largely dispensing the old naira notes through Automated Teller Machines (ATM) and paying over the counter.

“The amount of old notes I see the banks give out to customers as of now is a call for concern. If we aim to meet the December 31st deadline, by now the banks should solely be releasing new notes, allowing the old notes to naturally go out of circulation without any stress,” staff from Access Bank who prefer her name not to be mentioned said.

According to a Customer Service Specialist at GTB, the CBN at the beginning of the year usually conveys new notes to various branches, however, “the story isn’t the same today.”

He admitted that banks have not been issuing out the new notes as they should but Nigerians aren’t complaining as long as there is no scarcity. 

Background Story – Naira Redesign Policy 

Governor Godwin Emefiele, CBN Governor on October 26, 2022, announced in a press conference the intention of the apex bank to implement the naira redesign policy. 

Governor Emefiele said the recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier.

“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes,” Emefiele said.

“Although global best practice is for central banks to redesign, produce and circulate new local legal tender every five to eight years, the naira has not been redesigned in the last 20 years.

The CBN began the implementation of the new naira policy on December 15, 2022. The policy incorporates setting weekly withdrawal limits for individuals (N100,000) and corporate entities (N500,000), as well as redesigning N1000, N500, and N200 notes.

Consequently, some state Governors initiated a legal battle against the CBN which led to the final judgment that apex banks should release old notes by 31st December 2023. 

Economic Loss 

The new naira redesign policy backfired leading to scarcity of notes, suffering, economic losses, and social unrest across the country. Physical cash was largely unavailable and that crippled many activities in the country. 

Nigeria lost N20 trillion to the policy, according to a report by the Centre for the Promotion of Private Enterprise (CPPE).

According to reports, some frustrated Nigerians who were unable to withdraw money broke ATM terminals at several banks. Others forced their way into the banking premises in order to cause havoc.

Bank officials are becoming targets and at the receiving end of the anger of frustrated customers.

Videotapes show that some of the bankers were attacked on their way home from work. Bank employees are concerned about potential social unrest if the situation is not addressed, expediently.

“The scarcity is even affecting us who work in the bank.” “I don’t even have the cash to transport myself home after today’s work,” an Acess Bank official who doesn’t want her name mentioned told TechEconomy on a Friday phone call.

“The social unrest is something that scares us too. We don’t dress corporate to work anymore. We oy wear jeans and polo shirts.”

Naira Deadline Saga

Nigerians are currently in a dilemma over two conflicting orders from the Supreme Court of Nigeria and the Central Bank of Nigeria. The CBN has set the deadline for the submission of the old naira notes for today, February 10, but the Court is saying otherwise.

Two days ago, the apex court restrained the Federal Government from implementing the February 10 deadline, after three northern states—Kaduna, Kogi, and Zamfara—had, in a motion ex-parte filed on February 3rd by their lawyer, Abdul Hakeem Mustapha (SAN), prayed the apex court to halt the Central Bank of Nigeria’s (CBN) naira redesign policy.

Meanwhile, in another judgment, the Federal Capital Territory (FCT) High Court in Wuse Zone 2, Abuja, directed the CBN to ensure that its 10-day deadline for the validity of old naira notes is met.

Eleojo Enenche, the judge, issued the order on Monday in response to an ex parte application filed by four opposition political parties.

The four parties—Action Alliance (AA), Action Peoples Party (APP), Allied Peoples Movement (APM), and National Rescue Movement (NRM)—claimed in their applications that Nigerian banks were undermining the CBN’s new monetary policy.

At the time of filing this report, Nigerians were still using the old naira notes and felt reluctant to abide by the CBN rules owing to the fact that the new naira note and the old ones were still scarce.

Nigerians are becoming worried and recalcitrant, breaking up ATM terminals. Some have gone naked inside the banking hall, crying and shouting. There are fears that the situation could turn into social unrest.

Checks by TechEconomy on Monday morning at some of the banks at Oshodi bus stop reveal that many Lagosians were already queuing at Fidelity, UBA, Stanbic, Access, Union, and Zenith banks. This has been the trend for over 2 weeks.

The deadline for the deposition of the new currency remains fixed at February 10, but the Central Bank of Nigeria (CBN) said that banks will still be available to collect the old notes until February 17. There are clues as to whether the dates will be extended any further.

“The lower class, especially in the rural areas, is bearing a huge part of the brunt,” Emeka Orji, a twenty-four-year-old bike man in Aba, told TechEconomy on a call.

“There are no Naira notes here, old or new, and POS operators have no cash.” Some people are trekking and using more bicycles. “It’s even tougher right now because a liter of fuel now costs N500 at filling stations,” he said.

CBN Looking Vindicated

Many Nigerians including notable public office holders have accused the Central Bank Governor, Godwin Emefiele, of sabotaging the process of distributing cash to Nigerians, lately. But, the reality on the ground shows that the narrative is shifting.

Remember, last week, the Speaker of the House, Femi Gbajabiamila, threatened to issue arrest warrants for Emefiele and the managing director of any commercial bank that did not honor the House’s invitation.

However, in his address to the ad hoc committee on Tuesday, Emefiele explained that he had been out of the country, thus failing to honor the House’s previous invitations.

The CBN Governor said the apex bank’s actions on the newly redesigned currency were consistent with international best practices and that the bank must maintain control over the currency in circulation in the country.

Emefiele, unequivocally stated that cash was made available to commercial banks. According to him, N1.4 trillion was in circulation in 2015, and by 2022, it would have risen to N3.33 trillion.

Commercial Banks Looking Like Culprits

As the situation worsens, the CBN takes another major step just to ensure that Nigerians have access to cash. It directed commercial banks on Thursday to begin issuing the newly redesigned Naira notes to customers over the counter, not just through the ATMs. However, the regulator stated that each customer can only be paid a maximum of N20,000 over the counter.

In addition, the CBN began monitoring the distribution of the new naira notes. They are meticulously touring several states to determine whether banks are truly making cash available. The findings reveal that commercial banks are the culprits.

The CBN discovered N4 million in new naira notes hoarded in some commercial banks in Ogun State last week.

The Central Bank apprehended some banks that have new notes in their vaults and forced them to upload them to their machines.

In another ugly situation – after receiving the funds for more than two weeks, the CBN discovered N6 million of the new Naira notes hoarded in Sterling Bank Plc’s Ado Ekiti branch on Bank Road, Ado Ekiti in Ekiti State.

In a trending video on social media, a man identified as Oluwole Owoeye, a Deputy Director of the CBN, was seen questioning bank officials about why they have not uploaded the funds into their Automated Teller Machines (ATMs), despite having six of the machines in place, while monitoring the distribution of the new naira notes in the state.

In addition, the CBN director announced a N1 million fine for each day the fund remained in the bank’s possession.

“I am currently at Sterling Bank on Bank Road as part of the new Naira notes compliance monitoring team,” the CBN official said.

ALSO READ: CBN Should Introduce N5,000 Note Instead of Redesigning Naira, says NACCIMA

Sterling Bank had N6 million in its possession but has yet to disburse any of it. They claimed they had yet to configure their ATMs. On the contrary, there were approximately 5 ATMs in the banking establishment.

“The Zonal Service Manager, Tunde Onipede promised that by 10:00 am tomorrow (Monday), because I told him that by 10:00 a.m. latest, I’d be here and I want to see the machine dispensing this money.

“What is the name again?” Olumide Owolabi (Service Manager, Ado) & Motunrayo Babayele. My name is Oluwole Owoeye and I am a Deputy Director of CBN.”

“This is the third week of ensuring strict implementation of our directive regarding the issuance of new notes,” a CBN senior staffer said. New notes are circulated in the economy by banks, agents, and super agents. We saw some people trying to hoard new notes, we forced them to upload them into ATM terminals, and others had poor cash management.

“In our experience, commercial banks, not the CBN, should be blamed for scarcity.” We caught some of them, with new notes in their vault, and we compelled them to upload them to their machines. We told them that instead of trying to ration, upload the ones they have and contact your central cash management unit, which has direct access to CBN, for more.

“We came across instances of sabotage on the part of operators, we will take the case up and they will be dealt with appropriately.

“We came across one of them that couldn’t account for almost four million Naira of new notes, and appropriate sanction will be placed on them.”

Potential Social Unrest

Limited access to cash can have far-reaching consequences for individuals, communities, and society as a whole. This can result in protests, demonstrations, and other forms of public dissatisfaction.

It is critical for the CBN and financial institutions to maintain access to cash and other essential financial services, particularly during times of economic stress.

Already, disturbing videos have emerged online, and one of them showed a female bank official being attacked after the day’s work. The tire of her vehicle was removed while she screamed helplessly for help.

This sort of situation must be nipped in the bud before it escalates beyond control.