Nigerian banks have long been criticized for their inefficiencies, but the plight of customers relying on Automated Teller Machines (ATMs) highlights a particularly troubling dimension of this problem. Across the country, these financial institutions charge customers monthly fees for ATM card maintenance, yet the services they promise are often absent.
Many banks have a fleet of ATMs installed at their premises, sometimes as many as eight or more machines. However, these machines frequently fail to dispense cash when customers need it most. Instead, they display frustrating messages such as “No Cash” or “Temporarily Out of Service,” with no indication of when the situation will improve. Customers, left with no choice, are often forced to visit other banks in search of functional ATMs.
The experience at other banks is usually no better. Machines there may be sealed with notices stating they are out of cash or inoperable. The scenario is particularly frustrating for individuals who have urgent needs, parents seeking funds for emergencies, small business owners trying to settle transactions, and everyday Nigerians simply attempting to access their hard-earned money.
This lack of service delivery raises fundamental questions: Why do banks impose charges for services they consistently fail to render? Every month, ATM card maintenance fees are deducted from customers’ accounts, yet the inconvenience of cashless ATMs persists. This trend reflects a lack of accountability and respect for customers who entrust their funds to these institutions.
One might expect that lawmakers would intervene to protect citizens from this exploitative practice. However, the legislative arm of government has remained disturbingly silent on the matter. Despite the public outcry and the financial strain on Nigerians, there has been no significant effort to hold banks accountable for their service failures.
This silence raises concerns about whether lawmakers are disconnected from the everyday struggles of the people they represent. A proactive stance from lawmakers could compel banks to improve their ATM services or, at the very least, justify the monthly fees charged for card maintenance. Until such action is taken, customers will continue to bear the brunt of this systemic failure.
Meanwhile, other agencies like the Economic and Financial Crimes Commission (EFCC) appear focused on tackling an entirely different set of problems, often with questionable methods. Reports abound of EFCC agents conducting midnight raids, barging into people’s homes at 2 a.m., and harassing innocent citizens, including pregnant women, in their pursuit of alleged fraudsters.
These operations often target young men based on stereotypes rather than concrete evidence, creating a climate of fear and mistrust. While the EFCC’s mandate to combat financial crimes is vital, its approach appears to be misaligned with the broader systemic issues affecting Nigerians. Instead of focusing on the failures of the banking sector, a domain critical to the economy, the agency prioritizes headline-grabbing raids that often yield little to address the root causes of financial instability.
The Way Forward
For meaningful change, several steps must be taken:
The Central Bank of Nigeria (CBN) must impose stricter oversight on banks, ensuring that ATM services meet acceptable standards. Maintenance fees should be tied to performance metrics, and banks failing to deliver should face penalties.
Lawmakers must prioritize this issue, holding public hearings to investigate the state of ATM services and enacting laws that protect consumers from exploitative charges.
Banks must provide transparency regarding the use of maintenance fees. Customers deserve to know how their money is being utilized and why service delivery remains inadequate.
The EFCC should allocate resources to investigate systemic financial inefficiencies and hold institutions accountable for negligence, instead of targeting individuals through questionable methods.
Nigerians deserve better from their financial institutions and the bodies tasked with regulating them. Monthly charges for ATM card maintenance should come with a guarantee of functional services, yet customers are met with frustration and hardship. The inaction of lawmakers and misplaced priorities of enforcement agencies like the EFCC exacerbate this issue, leaving citizens to fend for themselves.
It is high time for systemic reforms that prioritize the welfare of Nigerians. Accountability must be enforced, and the culture of impunity in the banking sector must come to an end. Only then can the promise of financial inclusion and convenience be realized in Nigeria.
Adding to this crisis is the exploitation by some Point of Sale (POS) operators who take advantage of these lapses to charge customers exorbitant fees. Knowing full well that people have no other option but to withdraw cash from them, they hike their charges, leaving already burdened citizens with even less money in their pockets.
This Christmas season promises to be another trying time for Nigerians. Many will struggle to access their own money, facing endless frustration with cashless ATMs and inflated POS charges. It is a stark reminder of how a broken system continues to fail its people, especially during times when financial access is most critical.
