Nigerian bank customers 'need more protection over ATMs'

Sep 13, 2010

Banking rules in Nigeria should be altered to increase protection for customers, one political analyst has suggested.

Speaking to Leadership Weekend, Dr Al-Mustapha Ussiju Medaner said more action is required in order to improve the regulation of financial institutions in the country. He argued the increasing use of ATMs across the nation is proving damaging for some customers, as banks often charge for the use of the machines - which have become popular as they can give fast access to cash.

"The mere owning of an ATM card has eroded, in many instances, the supposed interest on savings accounts of small enterprising depositors," Dr Medaner stated, adding many banks and ATM service providers impose "several undisclosed charges" for activities such as withdrawing funds or receiving monthly balance alerts.

According to the Nigerian Compass, the country's central bank recently announced plans to make financial institutions liable for charges that have resulted from customers falling victim to ATM fraud.