The Central Bank of Nigeria (CBN) has issued a sweeping reform aimed at protecting consumers and restoring confidence in the banking system, directing Deposit Money Banks (DMBs) and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The directive is contained in a draft guideline released by the apex bank on Saturday, titled Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.
The document, signed by Musa I. Jimoh, Director of Payments System Policy Department, was circulated to various financial stakeholders, who were called upon to provide feedback by October 31, 2025.
The guidelines specify different timelines for refunds:
- “On-us” transactions (using one’s own bank’s ATM) must be reversed instantly. If technical issues prevent immediate reversal, the bank “is required to manually refund the customer within 24 hours.”
- “Not-on-us” transactions (using other banks’ ATMs) “must be processed within 48 hours.”
The circular stressed that “Customers must not be made to suffer for failed transactions caused by system errors or network failures.”
Furthermore, in a significant shift, the CBN mandated banks to deploy technology that “automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.
The apex bank explained that these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.
The guidelines will also overhaul ATM operations nationwide.
Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased compliance targets of 30% in 2026, 60% in 2027, and full compliance by 2028.
Any future deployment, relocation, or decommissioning of ATMs “must receive prior approval from the CBN.”
To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.
Other operational requirements include:
- Machines must comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts.
- At least 2% of all ATMs must feature tactile symbols for visually impaired customers.
- ATMs are required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only “clean banknotes,” and provide backup power to reduce downtime.
- Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.
The CBN stated it “will enforce compliance through regular audits, on-site inspections, and monthly reports from ATM operators,” warning that “Defaulting institutions risk sanctions.”
The apex bank explained that the overhaul was necessary due to rising complaints, noting that the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.
The fresh guidelines, coming eight months after a revision of ATM fees, are expected to streamline service delivery, enhance transaction security, and hold banks accountable.
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