It was a hectic day for most bank customers in the Lagos metropolis yesterday, as several automated teller machines (ATMs) deployed at various bank branches failed to dispense cash requested by them, even after debiting their respective accounts.

The worrisome development, which struck as banks were preparing to contend with challenges posed by the planned restriction on encashment of third party cheques in excess of N150,000 across the counter by the Central Bank of Nigeria and Bankers Committee was, however, attributed to network failure from telecommunications service providers, which lease links powering e-Payment transactions in the country.

As at last weekend, deposit money banks were busy sensitizing customers on the commencement of the ban on third party cheques slated for June 1.

However, while intermittent network flops have become a dominant character of Nigerian banking sector’s e-Payment platforms, many still believe that yesterday’s experience could be another bad signal that regulators and operators of the nation’s banking industry still have more ground work to do ahead of the July 2013 flag of the second phase of the cashless policy to other six states and the Federal Capital Territory.

Only recently the CBN listed six other states including Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT) for the next phase of the cashless policy, citing high velocity of cash transaction in them for the choice.

The CBN Deputy Governor, Operations, Mr. Tunde Lemo, while defending the choice of centres for the second phase of the cashless policy implementation said large volume transactions in the cities was the reason the six states were being chosen for the next stage of the project billed to kick off on July 1, 2013.

While acknowledging the numerous challenges the CBN and the Bankers Committee have encountered with the cashless project including interconnectivity in some of the clusters, Lemo assured that most of these are currently being addressed through the feedback from stakeholders.

Lemo said that besides the use of alternative channels of transactions such as Point of Sales (PoS), the cashless project would be driven through the telephone, since Nigeria is second largest user of mobile phone users in sub Saharan Africa after South Africa, which is also the largest economy in the region.

Prior to that experience, some stakeholders had advocated a further extension of the deadline, to enable them firm up preparation for the second phase of the cashless banking policy.

bank branches in Lagos metropolis recently insisted that the June 1 deadline given by the CBN, was too short to effect necessary adjustments in view of the geographic configuration of the country.

They warned that sticking to the date could jeopardize current transactions particularly where most account holders presently do not have functional demand deposit account to warehouse cheques in excess of N150,000.

Another source of worry according to them was the limited number of account holders using mobile money or other forms e-banking services to make payment to third parties.

Mr Tunde Lemo, said the apex bank would not compromise on its policy of implementing cashless policy, stressing that limiting the use of third party cheques in the banking industry was part of the whole policy.

He enjoined bank customers to consider opening demand deposit accounts with banks of their choice to lodge such cheques, stressing that those who can earn as much as N150 000 or more should be able to own current account.