Bottom photo: An empty ATM stand, highlighting the sharp decline in usage.
By Peace Udugba -The daily torch media
Concerns are mounting among bank customers in Nigeria over what many describe as excessive and multiple charges on their accounts, prompting a noticeable shift away from Automated Teller Machines (ATMs) to Point-of-Sale (POS) operators.
Across several cities, ATMs that once witnessed long queues are now often deserted, as customers increasingly opt for POS services despite the added convenience fees. Many account holders say the cumulative effect of bank charges has made traditional banking channels less attractive.
Customers have raised questions about the range of deductions applied to their accounts, including maintenance fees, SMS alert charges, transfer fees, and other service-related costs. Some argue that these charges persist regardless of whether certain services—such as ATM withdrawals—are actively used.
A frequent concern is the monthly maintenance fee deducted from accounts, which customers say continues even when there is little or no transaction activity. Others point to SMS charges for transaction alerts and fees applied to both sending and receiving money, describing the system as burdensome.
Financial analysts note that while banks are permitted to apply certain charges in line with regulatory guidelines, transparency and customer awareness remain key issues. Many customers admit they are unaware of the full breakdown of charges associated with maintaining an account.
“There is a growing demand for clearer communication from banks on what customers are being charged for and why,” a Lagos-based financial consultant said. “People want to understand the value they are getting in return for these deductions.”
The shift to POS operators reflects a broader trend in Nigeria’s informal financial ecosystem, where ease of access and perceived flexibility often outweigh cost considerations. However, this trend also raises concerns about regulation, security, and consumer protection.
Customers are now calling on regulatory authorities, including the Central Bank of Nigeria (CBN), to review existing banking charges and ensure that they are fair, transparent, and reflective of actual services rendered.
As the debate continues, stakeholders say restoring trust in the banking system will depend on striking a balance between operational costs for banks and affordability for customers.
