The paradox of ATMs in Nigeria: A hindrance to socio-economic development

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The paradox of ATMs in Nigeria: A hindrance to socio-economic development
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Nigeria's independent online newspaper

December 10, 2024 11:27 amThe automated teller machine was introduced as a technological innovation to make banking more accessible, convenient, and efficient for people and businesses. In a world where time is money, the advent of ATMs revolutionised financial transactions, enabling customers to access cash and other banking services without entering a bank or waiting in long queues.

While these operators fill a critical gap in cash availability, their services come at a steep price. Fees for cash withdrawals, often inflated in times of scarcity, impose an additional financial burden on ordinary Nigerians. For a populace already grappling with high inflation, rising unemployment, and other economic pressures, these costs amplify financial strain.

The conditions of ATMs in Nigeria can have a negative impact on foreign investment. Nigeria’s inability to maintain an efficient financial infrastructure sends troubling signals to potential foreign investors. A reliable banking system is a cornerstone of any thriving business environment, as it ensures seamless financial transactions, encourages commerce and builds investor confidence.

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