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Resumption of ATM fees drives Nigerians to other channels

ATM transaction has volume declined by approximately 9.6 percent since the reinstatement of charges, according to figures from the nation's central bank.

December 4, 2014

The Central Bank of Nigeria reports that the reintroduction of ATM charges has increased the use of other payment channels in the financial services sector, according to an article by BusinessDay.

In a three-day workshop organized by the Nigeria Deposit Insurance Corp., a CBN representative said that POS transactions increased by 20.59 percent between August and October. Additionally, the representative said, the use of mobile money payments rose by 21.52 percent during the same period.

Meanwhile, ATM transaction volume has declined by approximately 9.6 percent since the reinstatement of fees, the CBN says.

In August, the central bank overturned its own two-year ban of off-us ATM transaction fees. As of Sept. 1, the nation's banks were permitted to collect a fee of about 39 cents (65 naira) per transaction once a customer had exceeded a monthly alowance of three free transactions at foreign banks' ATMs.