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Despite Challenges, ATM Transactions Hit N3.5tr in Nine Months



ATM machine
  • Despite Challenges, ATM Transactions Hit N3.5tr in Nine Months

Despite several challenges confronting financial transactions done in the country via the Automated Teller Machines (ATMs), N3.5 trillion deals took place through the 17, 253 ATMs spread across the country from January to September 2016.

An ATM is an electronic telecommunications device that enables customers of a financial institution to perform financial transactions, particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.

The sum could have been higher but for many glitches associated with using ATMs in Nigeria, including network failures, frauds, and truncated transactions relating to the inability of the machines to dispense cash; and debiting without getting the funds.

Besides, the number of ATMs, according to market observers, is said to be grossly inadequate to serve an estimated 180 million people, as many areas are cut off from this quick teller machine services, leading to congestion at the available ATMs.

Aside from the massive investments that have gone into the deployment of ATMs across the country by the operators, the current challenges may as well be a dent on the Central Bank of Nigeria’s cash-less economy initiative, which kicked off in Nigeria in 2011.

The CBN’s motive was to reduce cash-based transactions in the country by as much as 90 percent, however, the series of challenges as mentioned earlier might as well be a limiting factor to ensuring the success of the project, for which enthusiasm has waned considerably well in the country in the last one and half years. In addition, these limiting factors have also been identified as impacting the various investments that had gone into the deployment of ATM terminals across the country.

An unconfirmed report claimed that the banks might have invested about N390 billion on the acquisitions of ATMs in the country in the last three years.

The report however, gathered that as at 2015, the cost of ATMs is determined by their functionalities, which include mono-functional, cashless and multi-functional ATMs.

A mono-functional ATM is the type mostly deployed by banks in the country, which dispenses cash as well as carrying out other transactions such as payment of utility bills and cost $20,000. This type of ATM is the one mostly deployed by banks in the country.

Multi-functional ATMs whose cost is between $50,000 and $100, 000 are those that, aside dispensing cash, also accept cash deposit as well as cheque. There are few of this type deployed in the country.

Besides, cash-less ATMs, as the name implies, does not accept or dispense cash are but rather carry out electronic payment transactions only and it costs some $3,000.

The two major brands of ATMs deployed by the banks are NCR and Wincor Nixdorf.

A spokesperson for Nigeria Inter-Bank Settlement System (NIBSS), Lilian Phido, said on the telephone that the challenges currently confronting the technology in the country were not insurmountable.

According to her, “If you look back like five to 10 years ago, you will see that we have come a long way.

“All the challenges you spoke about are not peculiar to Nigeria, even in the developed countries you still encounter some of these challenges. Ours is peculiar because of our infrastructure issues, but I can tell you that we will get there; it can only be better.”

She added that banks had been told to improve their services with regard to the operations of the ATMs, noting that only the banks could determine how many ATMs they could operate in a given location.

The statistics from the NIBSS showed that between January and September, there were 414 million transactions from the about 29 million active ATM cards in the country.

According to the ATM Industry Association (ATMIA) there are now close to three million cash machines installed worldwide.

Meanwhile, customers have called on banks to ensure their ATMs work efficiently and are loaded with cash in the New Year.

Most of the customers complained about their experiences during the Christmas period, which they described as very challenging.

A customer with UBA, who gave her name as Sidikat Sowole, lamented that she could not make any withdrawal with her ATM card at the bank branch located at 7 and 8 bus stop on Airport Road, Ikeja. “They should try and put their house in order this New Year holiday. Please, help me tell them.”

A customer with GTB located at Isolo, Malik Garba, said he no longer had confidence in the ATMs, adding “I now prefer to use my cheque book. Apart from the queues, the network is another issue. They should work on this. They shouldn’t allow their servers to go down this time around. The Christmas period was something else.”

While many banks are happy to do away with some workers in the categories of cashiers and tellers because of the ATMs, they have to improve their services in this regard or lose their customers who are frustrated. To encourage transactions through the ATMs, the CBN needs to be more efficient in ensuring that problems that arise over them are quickly resolved when customers complain.

Meanwhile, Point of Sales (PoS) services, according to NIBSS for the first three quarters of the year were worth N498 billion from 41.37 million transactions. While there are 140,281 registered PoS, those connected and active were 120, 042.

The PoS operators ride on technologies including Local Area Network (LAN), General Packet Radio Service (GPRS), Code Division Multiple Access (CDMA) and WIFI to connect the registered terminals for operations.

NIBSS, which provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks and card companies in Nigeria, is owned equally by all licensed banks in Nigeria, and the Central Bank of Nigeria (CBN).

According to it, as at September 2016, there were four million mobile money customers in the country. While mobile money operation has 10, 070 registered agents, the total volume of transactions was 33.6 million, which culminated in N527 billion. The sub-sector has 21 licensed operators.

A further analysis of the statistics showed that as at September, there are 59.19 million active bank customers from the about 93 million bank accounts.

NIBSS claimed that Nigeria has 63.68 million active bank accounts; 25.39 million current accounts; 65.44 million saving accounts.

The number of corporate accounts is 12.38 million, while 75.12 million accounts belonged to individuals.

NIBSS puts Bank Verification Number enrolments at 26.35 million.

Though Nigeria is pushing for a cashless economy, statistics showed increase in cheque transactions, which can be attributed to the challenges associated with the ATMs and PoS. For instance, within the period under review, the banks processed 8.74 million cheques worth N4.31 trillion. NIBSS puts average daily cheques at 31,899.

The total number of corporate cheques processed was 4.34 million, which was worth N2.70 trillion, while the number of individual cheques processed was two million and value was N0.70 trillion.

In terms of web payments, there were 8.91 million transactions with total worth of N88.73 billion.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020



electronic channel

Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020

Companies in Nigeria have started embracing electronic payment platforms established to ease the tax payment process and facilitate accountability.

According to the National Bureau of Statistics (NBS), businesses operating in Nigeria paid the highest amount of taxes through electronic channels in five years in 2020.

The statistics office puts the total amount paid in Company Income Tax (CIT) through the electronic channels at N238.1 billion in 2020.

The amount represents 16.9 percent of the total CIT paid in 2020 as more businesses adopt safer online payment methods.

NBS noted that payments were done through E-transact, E-tax pay and Remita.

However, a further breakdown of the report showed taxes fell by 13.5 percent from N1.63 trillion in 2019 to 1.41 trillion in 2020 due to the lockdown that crippled business activities in the first half of the year.

Taxes paid by Nigerian owned companies declined by 2.78 percent from N813.17 billion in 2019 to N790.58 billion in 2020. While taxes paid by international companies declined from N615.52 billion achieved in 2019 to N388.77 billion in 2020.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes



Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge



Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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