News

ATMs take off in Nigeria

September 14, 2006

All Africa: Nigeria in the last few years has recorded technological advancements against all odds. First was the rapid growth of GSM technology; now it's the spread of ATMs. More than 800 ATMs have already been deployed by Nigerian banks on the InterSwitch network in the last three years, making it one of the fastest-growing ATM markets in Africa.

The combined network may hit more 4,000 ATMs by December 2007, if the current rate of operation by banks is sustained. However, industry watchers are concerned that banks are not collaborating enough, which could lower deployment and branding costs. Most local banks are busy deploying off-site ATMs, and the Central Bank of Nigeria, after extensive consultation with the banks, has put in place a statute that empowers banks to release cash to third parties for ATM operation. One banker said: "There is no alternative to the outsourcing model because for the banks running the ATM network is typically not our core business. We therefore don't focus on the necessary expertise and technical ability to do it. In fact, the alternative to this model is chaos. But I hope the banks realize this early enough."

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