The Central Bank of Nigeria (CBN) has issued a directive ordering Deposit Money Banks and financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, as part of a comprehensive reform to bolster consumer protection and restore trust in the nation’s banking system.
The Central Bank of Nigeria (CBN) has issued a directive ordering Deposit Money Banks and financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, as part of a comprehensive reform to bolster consumer protection and restore trust in the nation’s banking system.
The directive is outlined in the “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released on Saturday by Musa I. Jimoh, Director of the Payments System Policy Department. The draft, circulated to banks, payment service providers, card schemes, and independent ATM deployers, invites stakeholder feedback by October 31, 2025.
Under the new guidelines, “on-us” transactions—where customers use their own bank’s ATM—must be reversed instantly. In cases of technical issues, manual refunds must be processed within 24 hours. For “not-on-us” transactions involving other banks’ ATMs, refunds are required within 48 hours. The CBN emphasized, “Customers must not be made to suffer for failed transactions caused by system errors or network failures.”
In a groundbreaking move, the CBN mandated the adoption of technology to automatically reverse failed or partial transactions, eliminating the need for customers to file complaints. Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.
The guidelines also introduce sweeping changes to ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with compliance targets of 30% by 2026, 60% by 2027, and 100% by 2028. Any ATM deployment, relocation, or decommissioning requires prior CBN approval.
To enhance security, ATMs must be equipped with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas. Compliance with Payment Card Industry Data Security Standards is mandatory, alongside maintaining audit logs and displaying functional helpdesk contacts. At least 2% of ATMs must feature tactile symbols for visually impaired users.
Operational improvements include dispensing cash before returning cards, offering free PIN changes, issuing receipts for all transactions except balance inquiries, displaying clear transaction fees, dispensing only clean banknotes, and ensuring backup power to minimize downtime. Downtime exceeding 72 consecutive hours must be publicly reported, with details on the cause and expected restoration time.
The CBN will enforce compliance through regular audits, on-site inspections, and mandatory monthly reports from ATM operators detailing deployments and locations. Non-compliant institutions face unspecified sanctions.
The apex bank cited rising complaints about failed transactions, cyber fraud, and declining service quality as the impetus for the overhaul. “The goal is to build a payments system that works seamlessly for everyone, urban and rural users alike,” the CBN stated. With Nigeria’s 200 million cardholders increasingly reliant on digital banking, persistent issues like network failures and delayed refunds have eroded public confidence.
Coming eight months after a revision of ATM fees, the guidelines aim to streamline service delivery, enhance transaction security, and hold banks accountable. The CBN’s push for modernization aligns with global standards, and the final policy could take effect before year-end, pending stakeholder input.
