The Central Bank of Nigeria (CBN) has issued a new directive compelling Deposit Money Banks and other financial institutions to refund customers within 48 hours for failed Automated Teller Machine (ATM) transactions, in a move aimed at restoring public confidence in the banking system.
The directive was contained in a draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” signed by the Director of the Payments System Policy Department, Musa I. Jimoh, and released on Saturday.
According to the CBN, the document has been circulated to banks, payment service providers, card schemes, and independent ATM deployers, who have until October 31, 2025, to submit their feedback.
Under the new draft policy, failed “on-us” transactions — when customers use their own bank’s ATM — must be reversed instantly. However, in cases where technical issues prevent immediate reversal, refunds must be processed manually within 24 hours.
For “not-on-us” transactions, which occur when a customer uses another bank’s ATM, the apex bank directed that refunds be completed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular emphasized.
The CBN further mandated banks and ATM acquirers to adopt technology that automatically reverses failed or partial transactions, eliminating the need for customers to lodge complaints.
To modernise the ATM infrastructure, the apex bank also directed that banks and card issuers deploy at least one ATM for every 5,000 active cards — with compliance targets set at 30% by 2026, 60% by 2027, and full compliance by 2028.
Additionally, the new framework requires that all ATM installations receive prior CBN approval before deployment, relocation, or decommissioning.
Safety and Accessibility Standards
The guidelines set out strict safety and accessibility standards for ATM operators. All ATMs must:
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Be equipped with anti-skimming devices and CCTV cameras.
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Be placed in enclosed or well-lit areas.
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Comply with Payment Card Industry Data Security Standards (PCI-DSS).
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Maintain audit logs and display helpdesk contacts.
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Include tactile symbols for visually impaired users (at least 2% of ATMs nationwide).
Other requirements include dispensing cash before returning cards, displaying transaction fees clearly, issuing receipts (except for balance inquiries), dispensing only clean banknotes, and providing reliable backup power to reduce downtime.
Operators are also required to ensure that no ATM remains out of service for more than 72 consecutive hours. In such cases, they must inform the public of the cause and the expected restoration time.
Enforcement and Sanctions
The CBN said it will enforce compliance through regular audits, on-site inspections, and mandatory monthly reports from operators detailing ATM locations and deployments. While specific fines were not disclosed, the apex bank warned that defaulters would face sanctions.
Explaining the motive behind the reforms, the CBN said the measures are designed to address growing complaints over failed transactions, cyber fraud, and poor service delivery across Nigeria’s electronic payments ecosystem.
“The goal is to build a payments system that works seamlessly for everyone — urban and rural users alike,” the circular stated.
Nigeria’s electronic payments sector has grown exponentially, with over 200 million cardholders now relying heavily on digital banking. However, network disruptions, aging infrastructure, and delays in transaction reversals have continued to undermine consumer trust.
The new draft guideline comes barely eight months after the CBN last reviewed ATM charges, signaling renewed efforts to strengthen consumer protection and service efficiency in the nation’s financial system.