Category: e-Business

  • How Nigeria can grow IT adoption

    Nigeria is trailing South Africa in the adoption of Information Technology (IT), an expert has said. According to Michelle Bulbring, adoption of IT is low in Nigeria compared with that of South Africa.

    Bulbring, who is the Regional Manager, Africa, Europe, Middle East, and Africa (EMEA) of eBeam, said Nigeria’s adoption capacity is lower that that of South Africa.

    Speaking at the sealing of a deal with Technology Distribution Limited (TDL) in Lagos, she said the country has huge market with high prospect for growth, adding that the country will overtake South Africa in the next two or three years if the right things are done.

    According to her, development cannot be achieved if IT adoption is not increased and made to permeate the different strata of the economy, especially the education sector.

    According to her, with the eBeam ineractive technology solution, teaching and learning can be achieved in compelling lessons that excite the children and create enthusiasm for learning.

    She adds that a company executive can host a meeting that allows everyone to contribute, no matter where they are, up to 25 locations.

    “eBeam systems recognise that schools and businesses often have tight budgets, therefore, the solutions can be used on the projectors and white boards that you already own or on the wall in the absence of a white board,” she added.

    She said the systems are designed to bring interactivity to the environment with relevant solutions that will work.

     

     

     

     

     

     

     

     

     

     

     

     

  • NCC canvasses local IT training for ex-militants

    THE Nigerian Communications Commission (NCC) has got the greenlight to train some former militants for re-integration into the society.

    The training will be at NCC’s Digital Bridge Institute (DBI) in Oshodi, Lagos.

    Vice President of the Institute, Dr Okechukwu Ugweje told The Nation when the Permanent Secretary, Ministry of Communications Technology, Dr Henry Akpan, visited the institute’s Oshodi, Lagos Campus. He said there was no further need to take people under the Amnesty Programme who desire training in any field of information communication technology (ICT) to other parts of the world when the facilities, competence and capability to do so are available at home.

    “The Federal Government is training a lot of people as part of the Amnesty Programme. Some people were even sent overseas for training. We believe that instead of going overseas, we can train here in Nigeria and we have facilities here at the DBI to train the amnesty people in ICT. Anything that is related to ICT, anything that is related to film, cinema and cinematography and anything related to computers. They can do the training in Nigeria instead of taking Nigerians to other countries. We have more than enough facilities here at DBI. We also have the capability. That is why I said we are prepared for such training,” Ugweje said.

    Though he said the number of ex-militants that would be trained was not known, an official of DBI said some thousands of the militants are expected in batches in Lagos. “So many of the ex-militants will be trained here, but for a start, some 300 will be trained in the first batch while the second batch will accommodate the same numbers. We hope the Federal Government will continue with the training,” he said on condition of anonymity.

    Akpan expressed satisfaction with the state of facilities in the campus, adding that they will help train the crop of ICT entrepreneurs that will move the country to the next level.

    “DBI has changed the aesthetics of the structure. DBI will provide opportunity for the youth to learn and reduce poverty and restiveness. We are interested in knowing how soon we will be converting the structure to use,” Apkan said.

    Ugweje said the institution has patnered both local and international universities to deliver internationally acceptable curriculum to the people that pass through it. “We already have partners. We have partnered with Nigerian universities, we have international partners in ICT. In fact, partnership is one of the strengths of the DBI vcos. We partner with a lot of institutions in the US, Europe, as well as universities in Nigeria. We have been doing that. We shall continue to do this. I don’t want to start naming the universities because they may not have direct relevance to the amnesty ptogramme. The amnesty programme is coming up anytime from now,” he added.

     

     

     

     

     

     

     

  • Why local content failed, by NITDA

    WHY has the local content policy not made an impact? It is because of the government’s inability to convince its ministries, departments and agencies (MDAs) to patronise local software and original equipment manufacturers (OEMs).

    Director-General, National Technology Development Agency (NTDA), Prof Cleopas Anagaye, said these OEMs lacked capacity, throughput and performance analyses.

    He spoke at a forum by the Pan African University, Lekki, Lagos entitled: Role of ICT in the transformation agenda in job creation.

    He said when the directive to partonise the OEMs was issued in 2006 during Obasanjo administration, the aim was to grow the local OEMs for job creation.

    But one of the local OEMs, Beta Computers, described the allegations as baseless, insisting that none of the factories of the local OEMs is running above 25 per cent.

    Its Managing Director,Will Anyaegbunam, said the MDAs misinformed the NITDA chief, adding that the mentality to keep patronising foreign brands and inability to monitor and sanction erring MDAs are responsible for the situation.

    “Seven years down the line, another directive was issued last year. Let the MDAs come out and say, ‘We gave this OEM jobs to do, but it could not meet up with quality and schedule of delivering the job.’ They keep advertising foreign brands in their offices.

    “As for support, they are talking balderdash. NITDA should monitor and sanction them. Toyota, IBM and other world class manufacturers have had causes to recall goods already in the market. NITDA is a technology development agency. It should help in developing OEMs,” he said.

    Angaye said the ‘directive’ required that they should patronise indigenous software and computers. He insisted that no sooner had the directive been implemented than the MDAs, especially, public institutions, started complaining.

     

     

     

     

     

     

     

     

     

     

     

     

     

  • ASUS Fonepad for launch

    Technology firm, ASUS, said the ASUS Fonepad, will soon be launched in Africa.

    According to a statement, it is the first Android tablet that runs the new Intel processor and is a budget-friendly option in the market, adding that it was built upon the successes of the ASUS 7″ Android tablet range.

    The Fonepad brings real voice capabilities to a tablet, incorporating all phone and tablet functions into a single device, the firm added.

    Regional Director of Asus Africa, Shawn Cheng, said the continent is central to its business. “Africa is a priority market and ASUS Africa will release all their new products at the same time with other markets. Users will now be able to enjoy the ASUS quality and value without the wait,” he said.

    The Asus Fonepad will have the new 1.2GHz Intel Atom processor Z2420. This processor was specifically designed by Intel for smartphone and tablet devices.

    Intel Country Manager for West Africa, Ekundare Olubunmi, said: “Extending our long history of collaboration, including most recently on the ultrabook and Intel-based tablets, we are very excited on our continued collaboration with ASUS.

    “The new Intel Atom processor Z2420 delivers the power, performance and flexibility required to accommodate a range of devices and market needs. We think the ASUS Fonepad is a very innovative device in an emerging category of 3G tablets with telephony features.”

     

     

     

  • Can NCC halt MTN’s dominance?

    Can NCC halt MTN’s dominance?

    About one month ago, the Nigerian Communications Commission (NCC) directed telecom gaint MTN, which it described as the dominant operator, to take steps to ensure a level-playing field in the industry. It threatened to impose price caps on wholesale leased lines and transmission. While MTN is yet to comply, analysts doubt if NCC will walk the talk, writes LUCAS AJANAKU.

     

    Then the Nigerian Communications Commission (NCC) declared two mobile operators as the dominant players in the telecommunications market and promised to take steps to protect subscribers and other operators, the public welcomed the move.

    Those who praised the NCC’s action recalled the days of the former state-run, Nigerian Telecommunication Limited (NITEL) and its mobile subsidiary, MTEL, which monopoly was to the detriment of the industry.

    Whereas there were only about 5,000 lines in the days of NITEL, today there are more than 113 million lines. NCC said there is need to ensure fair play. So, in June last year, in exercise of its power to “ensure fair competition in all sectors of the communications industry” vide section 1 (e) of its Act, it embarked on a Study of the Assessment of the Level of Competition in the Industry.

    KPMG Professional Services was in the same month engaged to carry out a Study on Assessment of the Current Level of Competition in the industry, having undertaken a similar study for the Commission in 2005. For the study, the market was segmented into mobile voice market, fixed voice market, mobile data market and upstream market.

    “The mobile voice market is not effectively competitive and is still highly concentrated with an HHI of 3063. MTN has a 44 per cent market share of subscribers within this market. There is also a wide differential (of about 300 per cent) between on net and off net calls and this is indicative of the likely establishment of a calling club for MTN subscribers,” the report said.

    In the fixed voice market, it said though Starcomms (with about 33 per cent market share of subscribers) has the highest market share within the fixed voice market, it is not considered to have significant market power in this market as it has consistently lost market share over the past three years. The fixed voice market has been on the decline since 2008 and has lost 70 per cent of its market over that period while in the mobile data market, the report noted that it accounts for 99 per cent data market.

    “The GSM operators lead this market segment. The major competition concern is that the wholesale providers of bulk bandwidth also play in the retail mobile data market and potentially stifle competition in this market. The study, however, concluded that no operator is dominant within the mobile data market,” it added.

    In the upstream market, MTN and Glo control about 62 per cent of the public terrestrial transmission infrastructure, which is a bottleneck resource in the provision of voice and data services. There are concerns that operators playing in the wholesale and retail sub segments of these markets have the leverage to “squeeze” the margins of their competitors who are also their customers.

    In view of these, the NCC resolved that the Dominant Operator in the mobile voice market shall be required to certain obligations, which incude accounting separation, collapse of on net and off net retail tariffs and submission of required details.of operations from time to time as the need arises. “The Commission shall make a determination of pricing principle to address the rate charges for on-net and off-net calls for all other operators,” NCC added.

    In the wholesale leased lines and transmission capacity market, which are dominated by Glo and MTN, NCC said they shall be required to adhere to the obligations of price cap/price floor, accounting separation, and submission of required details.

    NCC said all these would take effect from “May 1, 2013 and remain valid and binding on licencees for the services specified in relevant market segment of this sector until further reviewed by the commission.”

    Analysts have faulted the attempt of the NCC to cap the price in the wholesale and transmission sector. “How do you regulate what you do not own? This is the major problem with the deregulation of the downstream oil sector. The government said it deregulated and issued licences to people to build refineries and insisted in capping the price of the finished products. That is why no private enterpreneur is jumping at the offer,” a sector analyst said on condition of anonymity.

    “MTN should, among others, collapse on-net and off-net retail tariffs immediately. MTN booster weekly prepaid charge, for instance, offers MTN-to-MTN calls at 10 kobo per second; while subscribers are charged 150 per cent more – 25 kobo per second – for calls to other networks. At 30 kobo per second for calls from the second minute till the rest of the day, “MTN Super Saver off-net call rates are exploitative. There is a huge difference of 200 per cent as it charged 10 kobo per second for on-net calls,” a subscriber lamented.

    But the General Manager, Public Affairs, MTN, Funmi Omogbenigun, concedes the power to regulate tariffs to NCC. She, however, added that the telco was in talks with the regulator on the market dominance.

    “By law, NCC must approve tariffs; as such, we are in discussion with the NCC. We are also discussing the implementation with the NCC, to ensure that their directive is implemented in a manner that causes the least possible negative impact on our customers, if any,” she said.

    Glo’s Talk-Free pre-paid package, on-net calls cost 15 kobo per second and 18 kobo per second for off-net calls. On Glo Hi-Flier and G-BAM Hi 5ive, subscribers enjoy the same 18 kobo per second charge to any network within Nigeria. But subscribers say it charges 10 kobo per second for on-line calls on Glo Gista, but 30 kobo per second for off-net calls, while Glo 1derful rates for voice calls are 15 kobo per second for on-net calls and 25 kobo off-net. These, they argue, is also exploittative.

    Airtel has 2good Classic and Airtel Club 10, among other packages. For the former, voice calls have a flat rate of 18 kobo per second for calls to all national destinations, irrespective of the network. Airtel Club 10 requires subscribers to register 10 Airtel lines of family, friends or associates which would then enable calls to be made at 8.34 kobo per second. Calls to other Airtel numbers on this package cost 20 kobo per second on-net and 30 kobo per second off-net.

    Etisalat has Easy starter, among its several bouquets. Calls to networks cost 50 kobo per second, while Homezone calls are charged at 40 kobo per second whether on-net or off-net. On Easycliq, calls within the network at peak period cost 40 kobo per second and a minimal increase to 50 kobo per second for off-net calls.

    Omogbenigun argued that the difference between MTN’s on-/off-net tariff is competitive. “With respect to the other comments in your enquiry on MTN tariffs, our response is that the differential between our on-/off- net tariff is extremely competitive compared with other operators. Indeed, the differential between on-/off-net tariffs for one network is as much as 1000 per cent,” she said.

  • Centum, IDM to inaugurate academy

    Centum Learning is partnering International Data Management Services (IDM) to launch Centum International Academy in Nigeria to offer high end vocational education programs in various professions.

    The Managing Director of IDM Chief J.C.Dugad said the centre, which will be based on skill and vocational acquistion, will eradicate unemployment in the country, adding that trainees would become entrepreneurs on graduation.

    He further said the agreement IDM has with Centum Learning will cut across Nigeria and Ghana and will provide best in class content and will certify candidates jointly with IDM.

    The Chief Executive of IDM Atul Kshetry said the company has established an international quality voice-based customer care centre in Abeokuta that is offering employment to over 1,000 persons in the region, which will cater to the industry.

    He said the partnership is looking at providing a short term and long term programmes covering vocations as mobile repair, mobile engineering, Telecom Call Centre executives, programmes for customer service executive, business process outsourcing (BPO) services executive and hospitality.”

     

     

     

     

  • Airtel introduces Bid & Get service

    The telecoms market is set to witness another major breakthrough in service delivery for consumers as Airtel Nigeria introduces the first-ever bidding service in Nigeria tagged Bid and Get .

    The service is a direct reverse of the traditional concept of auction, where the highest bidder is declared a winner.

    With Airtel Bid and Get, a customer whose bid is the lowest and unique automatically, wins the bid for the advertised item for the day. The winner can purchase the item for N100 only irrespective of the retail price of the item.

    To register for Airtel Bid and Get, customers are to send the word “BID’ to the short code 3210 free of charge, and thereafter participate in the bid by sending their bid amount to the 3210, at N10 for every bid SMS.

    The customer, whose bid is the lowest and is unique at the end of the bidding cycle, is declared the successful bidder and would be eligible to buy the product for N100.

    On receiving SMS, informing a participant of winning a particular bid auction, the successful bidder is to send the word “WIN” to “3211” and, thereafter, would be presented with his winning at the nearest Airtel office.

     

     

     

     

  • Zinox builds digital plant

    Zinox Technologies Group, said it has completed the installation of its 21st Century digital PC/phones assembly plant, ahead of the deadline set last year by management.

    Committed to the manufacture of quality ICT equipment to empower digital natives to drive the development of the nation, Zinox has tested the reliability of the digital plant, first of its kind in Africa.

    The plant has capacity to assemble in-house brands as well as execute contract manufacturing for other brands.

    In a statement, the Corporate Affairs Consultant of the Zinox Group, Mr. Echika Ezuka, said the digital plant with multiclass functionality produces smart desktops, laptops, tablet PCs, phones, and is structured to produce a wider range of gadgets with available components.

    He said the digital plant has enhanced the capacity of Zinox to keep pace with international quality standards.

    “Zinox would now be more competitive in terms of pricing, delivery and after sales support while increasing the rate of introducing new products,” he said, adding that it is an opportunity for Zinox to customise large orders.

     

     

     

  • Should interception of calls be regulated?

    Should interception of calls be regulated?

    The Nigerian Communications Commission (NCC) is proposing the regulation of interception of calls as part of its mandate. To some, the Draft Lawful Interception of Communications Regulation is good; others see no reason for it. The latter believes that invasion of citizens’ privacy should not be done by regulation but by legislation. LUCAS AJANAKU reports.

     

    It was an interesting debate and the discussants cited relevant laws to back up their arguments.

    Former Minister of Federal Capital Territory, Mallam Nasiru el-Rufai, fired the first salvo by making reference to the fourth volume of William Blackstone’s Commentaries on the Laws of England, where eavesdropping was recorded as an offence.

    He spoke at a forum organised by a group, JACITAD, to review the Draft Lawful Interception of Communications Regulations of the National Communications Commission (NCC) in Lagos.

    In 1769, Blackstone said in Common Law, “Eavesdroppers, or such as listen under walls or windows, or the eaves of a house, to hearken after discourse, and thereupon to frame slanderous and mischievous tales, are a common nuisance and presentable at the court-leet; or are indictable at the session, and punishable by fine and finding of sureties for good behaviour.”

    el-Rufai, who said he was one of the architects of the Nigeria Communications Act 2003 that gave legal teeth to the NCC, said: “It is on reliance of and pursuant to sections 70, 72, 146, 147 and 148 that the NCC has issued “The Draft Lawful Interception of Communications Regulations (2013?).”

    He said to do justice to the draft regulation, it is important to establish the legitimacy of the regulation and examine its ‘substantive content and language.’ Doing this will involve knowing the constitutional provisions on privacy or otherwise of physical and electronic communications between citizens; conditions the constitution and laws allow the violation of such privacy, if any; whether the legislature, in passing the NCA ‘reasonably’ intended to give the NCC the powers to regulate the interception of private communications, thus enabling the infringement of fundamental rights without specific legislation via an Act of National Assembly.

    He added that it was also vital to establish if Sections 70, 72, 146-148 of the NCA granted the NCC the legitimacy to issue and enact the regulations under consideration, adding that if the constitution and NCA empower the NCC to issue the regulation, is fit to protect the privacy of the citizens while at the same time giving law enforcement agents access to citizens’ privacy in public interest.

    According to him, the primary duties of any government are internal security, maintenance of law and order and monopoly of coercive power over its territory, while respecting the rights of the citizens, adding that the challenge for any government is to what extent it can tamper with the rights of a few for the good of the many.

    “The dilemma for citizens is the extent to which they will give up their individual rights to a leviathan called government in order to be protected in the arrangement Rousseau called a social contract,” he averred, stressing that while citizens are entitled to their dignity and privacy, governments argue that they can protect citizens only if they know what a handful of criminal elements may be up to. But with the rapid development of communications and encryption technologies, side by side with the proliferation of cybercrimes, terrorism and insurgencies, this question has become even more troubling for everyone.

    Striking a balance between respecting individual privacy and spying enough on citizens to ensure our collective security is the standard that should be applied to analyse the regulations being proposed, he said.

    On the legitimacy of the regulation, he said it contravened the provisions of 1999 constitution of Nigeria. Chapter IV of the Constitution of the Federal Republic of Nigeria 1999 deals with fundamental rights of citizens that are guaranteed against the state. He quoted relevant sections of the constitution, which will be breached if the government unlawfully intercepts communications between citizens. Section 37 is very specific about telephone communications: “The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected,” he said, adding that the provision is, however, moderated by Section 45 which states: “(1) Nothing in sections 37, 38, 39, 40 and 41 of this Constitution shall invalidate any law that is reasonably justifiable in a democratic society (a) in the interest of defence, public safety, public order, public morality or public health; or (b) for the purpose of protecting the rights and freedom of other persons.”

    He said the NCC has no powers to regulate the subject matter it is seeking to do, Section 70 of NCA 2003 empowers the NCC to make and publish regulations for six classes of issues all of which have to do with technical and economic regulation of the industry, and none to do with citizens’ rights to the privacy of their communications.

    “Section 72 merely enables the NCC to review rules and regulations already issued, while sections 146 and 147 refer to technical issues and legal indemnities when licensees are required to assist law enforcement agencies in preventing the commission of crimes. The sections do not obviate the need for an Act of the National Assembly that will ‘authorise interception’ of communications without violating the constitution. Merely mentioning these in Ss. 146-147 does suffice in my humble opinion,” he said.

    Director, Government and Regulatory Affairs, Airtel, Osondu Nwokoro, said it is trite that interception of communications interferes with the right to privacy. He said such interference however, is expected to conform to extant international and domestic laws.

    On the paragraph that allows interception with a warrant issued by a judge, he said it seeks to impose an obligation on operators to intercept subscriber’s communication. “Our understanding in obeying NCC’s directive that we make our networks intercept capable and grant access to both the National Security Adviser (NSA) and the Directorate of State Service (SSS) is that both agencies shall mark, monitor and intercept numbers of interest independent of operators. He lamented that requiring operators to intercept has administrative and security implications which are too onerous for operators to bear.

    On the paragraph that details who can apply for a warrant, the structure of an application for a warrant and the circumstances under which an interception can be done without a warrant, among other things and a proviso which requires intercepts done without Warrant to be regularised via Warrant within 48 hours of its occurrence of commencement, he said it should be expanded to provide an exculpatory clause protecting operators from liability for acts or omissions done further to the duty the paragraph imposes.

    He said the paragraph should state clearly that receiving a communication, purporting to emanate from the NSA should be sufficient for the licencee to act. In other words, there should be no duty on the licencee to investigate the veracity or otherwise of the letter, instrument or communication from the NSA.

    On the prohibition of certain communications services which state that “Notwithstanding any other law in force….” He argued that the paragraph also prohibits certain communications services and makes it the responsibility of the licensee to acquire, at its cost, devices and facilities that will enable monitoring of communications.

    “We contend that the use of the phrase “Notwithstanding any other law in force …” supposes that the NCC can by regulation proscribe an Act of the National Assembly. The NCC cannot do this. We, therefore, suggest that the offending phrase be removed or redrafted to reflect what the NCC can safely do.

    On the requirement that intercept capability be acquired at the licencee’s cost, he said it should be reconsidered in the light of operational realities in the country, adding that licencees are operating in challenging environment and require support to succeed. “As things stand, critical sectors of the industry are distressed. Some licencees might not have the resources to comply, especially in an environment characterised by flux as technology continues to change dramatically” he said, adding that licencees derive no economic benefit from providing interception capability on their networks.

    He argued that in other jurisdictions like the United States under the Communications Assistance for Law Enforcement Act (CALEA), support is provided to licensees to ensure that the requirement for intercept capability does not become a burden.

     

     

     

     

     

     

     

     

     

  • Making ATMs serve depositors better

    Making ATMs serve depositors better

    Automated Teller Machine (ATM) is a key element of cash-less banking, which was introduced last year by the Central Bank of Nigeria (CBN). ATM is meant to ease certain banking activities. Rather than going to their banks, customers can make withdrawals using their debit cards at designated ATM points. But these days, it is not that easy as customers encounter problems such as poor network; system failure and long queues at ATM points. LUCAS AJANAKU writes on the need for banks to increase the number of ATMs to alleviate depositors’ sufferings.

     

    He had bandages on his head and hands. On seeing him, one would think he was a robbery victim.

    Alhaji Zakarau Kangiwa, 54, was not a robbery victim. His problem was caused by the failure of an automated teller machine (ATM).

    According to him, early this month, he travelled to Abeokuta, the Ogun State capital on business. Business over, he boarded his car for the journey back to Lagos. When he got to Ifo, still in Ogun State, his car developed a fault.

    He was directed to a nearby mechanic workshop by a passer-by. After examining the car, it was discovered that his alternator was faulty. He was told that the repair would cost him N16,000. He had only N6,000 and his ATM card. Confident that he could get some cash, he dashed into the premises of a nearby bank.

    “I was directed to a nearby ATM in Ifo. When I got there, the vault was empty. Since I don’t live in that area, I became worried, especially as it was getting dark. There was no one around. Another good Samaritan told me that the only place I could get another ATM is Sango-Ota. I quickly boarded a bus to Sango. When we got there, the bus ran under a stationery articulated vehicle,” he said.

    According to him, after the five occupants of the bus were rescued, they were taken to Ota General Hopital where they were attended to. “Pieces of the shattered windshield of the bus pierced my head and other body parts. The doctor carried out several minor surgeries to remove them,” he recalled, adding that if the first ATM had worked, he probably would have been saved the predicament.

    A London-based businessman, Felix Ilori, will not forget the experience he had with an ATM when he came to the country recently. Shortly after his arrival, he converted his hard currencies into naira, opened an account and got an ATM card. He travelled to Ilawe Ekiti in Ekiti State for the wedding of a kinsman. He exhausted his money on fuel, hoping to withdraw from an ATM. At Ilawe, he went to the only ATM around. He was disappointed.

    “When I got to the ATM point, I inserted the card only to be told my financial institution was not available. I tried it again and I got the same response. I was frustrated and my cousin saw it on my face,” he said. He was advised to go to Ado Ekiti, the state capital, which is about 25 minutes drive away. At Ado Ekiti, he got the same message. He would have been stranded if not for the assistance from his people.

    These are, but a few of the pains bank customers who use ATMs go through in the country. If it is not network, it is non-availability of cash for the machine to dispense to customers. At other times, it would be the refusal of the banks to load the ATMs with cash.

    Idimu Road, Egbeda in Lagos has no fewer than eight banks. Some of these banks have between four and six ATMs installed on their premises, but most times, it is only one of the ATMs that is loaded with cash. This leads to long queues at the only functional ATM, subjecting the customers to the vagaries of the elements – the sun and rain.

    Frustrated by the long queues outside the banking hall, customers who are even prepared to pay the bank charges that go with on-counter transactions, are not encouraged to do so because the halls are usually filled to capacity without any arrangement made for their comfort.

    Another problem with the ATMs is that they are deployed in cities and scarcely in rural communities. But this was not the case before the CBN rolled out a policy that saw to the removal of all off-site ATMs. Before then, there were quite some ATMs in strategic locations in the country.

    Justifying the rationale for the removal of ATMs from off-site locations, the CBN said one of the policies guiding the operations of ATM consortium (ATMC) is that the ATMC shall have the mandate to deploy ATMs at public places while the banks shall deploy ATMs only within their premises.

    The apex bank also said the banks were competing with the ATMC in the deployment of ATMs in public places, adding that a worrisome trend is the number of ATMs at the airports and hotel lobbies, which if unchecked could congest these public places. It added that in line with its policy on shared payments infrastructure by the industry and the need to respond to the rising demand for ATM services by the public, the CBN decided to license an additional ATM consortium.

    But with the full roll-out of the cash-less exercise, the apex bank has since rescinded this decision.

    But Deputy Governor (Operations), CBN, Tunde Lemo disagrees.

    Said Lemo:“There was no reversal. Recall that at the time, the CBN said banks should not put branded ATMs outside their banking premises in off-site, it was because then, when you get to some key locations, such as Hilton, you see 25 ATMs; virtually every bank is there and yet other areas are not well-served. So, we felt that instead of wasting resources, why not get licensed Independent ATM Deployers (IADS) to have those equipment there that will serve the industry. The IADs, then, were just three and so we had three in those important locations as opposed to having between 20 and 25 different machines, just to save cost. But recall that at that time, we did’t have a cash-less programme. We decided to look away from that to encourage banks to invest heavily in ATMs. So, it was the cash-less programme that made it unnecessary to do that and of course, we have since ensured that they were compensated for the change in policy.”