Nigeria: The Deployment of ATM Machines on Mobile Molue (Buses)

By

Femi Oyesanya

yeyerolling002@aol.com

     A recent article in a Nigerian newspaper quoted the Director General of Nigerian Information Technology Development Agency (NITDA) as announcing that NTIDA in partnership with  a  Private Business  will be overseeing the installation of 1000 ATM machines at various locations in Nigeria.   As if to validate  the general perception of incompetence  the Nigerian public has towards NITDA, the Director General of NIDTA went further to state that,  “NITDA will provide Mobile Internet Units, which are minivans specially fitted with internet access to the CHAMS Consortium. Each of the MIUs will house five computers and three kiosks/ATMs to enable the users have the opportunity to browse the internet and also use other”[1] 

The revelation that NITDA would even consider implementing ATM machines on mobile buses, given the high rate of Bank Robbery and crimes in general in Nigeria, is shocking.   Why would a National Information Technology Development Agency propose policies for implementing ATM without consideration for Physical Security?

Why does NITDA disregard Section 1.4.2(G) of Nigerian Central Bank Guideline For Electronic Banking which states: “ATMs not located within bank premises must be located in a manner to assure the safety of the customer using the ATM.”[2]?    Additionally, one White Paper on ATM Security published by  DIEBOLD, had this to say about Physical Security for ATM installations, “many physical  attacks are designed to steal entire ATM and to transport it to a location where its safe can be laboriously penetrated and its content removed.”[3]   

The Physical Security of ATM implementation in Nigeria is so critical to the success of ATM installation in Nigeria.  Not only is the general crime rate very high, there have been numerous attacks on the so called “Bullion Vans”.  Bullion Vans are transportation vehicle used to move cash from one location to the other by Nigeria’s Financial Institutions. 

The attacks on these vans have become so numerous, that recently, to address the alarming rate of Police killings that follow Banking Transport Vehicle robbery, the Nigerian Chief of Police recently insisted that the form of transportation used by Nigerian banks to move cash from one location to another should be in highly secured vehicles. 

The Nigerian Police Chief proposed a requirement that these Vehicles be bullet proof and armored.

According to an article, the Nigerian Police Chief, in a statement to the press said, “the police lose an average of three policemen weekly during raids on bullion vans by robbers. I have told Commissioners of Police that anyone of them that assigns policemen to any of the banks who fail to comply by the 27th day of October and such policemen gets killed, I would hold them responsible” [4]

Nigerian Mobile Internet Unit’s, are basically buses fitted with VSAT technology and Personal Computers.  They are not armored Vehicles, do not meet the Physical Security protection requirement that will ensure the security of ATM personnel and equipment.  

According to another article on ATM Fraud and Security, “Physical attacks, ram-raids or smash and grabs burglary to ATMs can be carried out in a number of ways. One of the most common is through physical attacks, which attempt to gain access to the safe or vault inside the ATM through mechanical or thermal means. Typical entry methods include caulking shut every opening on the machine and using explosive devices to blow open the safe and reveal the cash cassettes or the use of high speed grinders, construction saws, pry bars and torches to cut away the outside security lock to gain access to the inside of the ATM without setting off the alarm. Regardless of the tactic, the ultimate goal is to penetrate the ATM on location and open the safe door, or make an opening in the safe sufficiently large enough to quickly remove cash.”[5]

Why then does the Director General Of NITDA envision the transportation of ATM machines fitted on Mobile Internet Units that do not meet basic prerequisite for Financial Institution cash transportation? 

Why is NITDA’s ATM policy implementation proposal inconsistent with the Chief of Police Security requirement for armored vehicles?

Around the world, “collaboration between all sectors in the ATM Life Cycle and Law Enforcement is key to defeating ATM crime.  In the UK, a police operation know as operation ARTIC, involved the provision of intelligence, ATM expertise and crime prevention advice from ATM deployers, the post office, ATM Security Working Group, British Bankers Association, and Building Society Association” [6]

Today in Nigeria, there is no evidence of collaborative policy harmonization towards ATM deployment. 

Although the Central Bank of Nigeria has implemented the E-Banking guidelines, with a section on ATM security requirements, and the Chief of Police has announced a requirement for armored Bullion Vans, there is little indication of an overall ATM deployment policy harmonization.

There are other inconsistencies in NITDA’s ATM implementation proposal that potentially set the stage for

ATM deployment failure.  The Director General of NITDA went further to envision in his proposal, that ATM machines be located in every Local Government area in Nigeria.  According to the article published in the Nigerian Press, NITDA’s vision is to have, “…one stationary booth comprising five CHAMS  Access Service terminals, one ATM and three point of sale terminals in each of the 774 local government areas of the federation, while 5,000 terminals would be deployed in hospitals, higher institutions and Federal government’s secretariats across the country”

What is surprising in the above statement is the fact that, NITDA has not factored business activity as a model for deploying these ATM’s, it’s primary goal is to place one piece of equipment in each Local Government Area in Nigeria, regardless of commerce activity.   It appear that the underlying objective is not the result of a Business Study, but placement of ATM’s across the Country regardless of financial transaction traffic.