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The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions to refund customers for unsuccessful Automated Teller Machine transactions within 48 hours, as part of wide-ranging reforms aimed at safeguarding consumers and restoring confidence in the financial system.
This directive is outlined 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 the Payments System Policy Department, was distributed to banks, payment service providers, card schemes, and independent ATM operators, inviting feedback from stakeholders by October 31, 2025.
According to the draft, failed “on-us” transactions — where customers use ATMs belonging to their own banks — must be reversed instantly. If technical issues prevent automatic reversal, the bank is required to manually process the refund within 24 hours.
For “not-on-us” transactions, which occur when customers use other banks’ ATMs, refunds must be completed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular emphasised.
In a major change, the CBN instructed banks and ATM operators to adopt technology capable of automatically reversing failed or partial transactions, removing the need for customers to lodge refund complaints.
Financial institutions holding customer funds due to failed disbursements must reconcile and return those balances without delay.
The apex bank explained that these new measures address the growing frustration over delayed refunds and poor customer service, forming part of a wider initiative to enhance consumer protection, improve efficiency, and modernise Nigeria’s payment infrastructure in line with global practices.
The guidelines also introduce major reforms to ATM operations across the country. Banks and card issuers must now provide at least one ATM for every 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. Any future installation, relocation, or removal of ATMs will require prior approval from the CBN.
To enhance security, all ATMs must be equipped with anti-skimming devices and CCTV cameras and must be installed in enclosed or well-lit areas.
The machines are also required to comply with the Payment Card Industry Data Security Standards, maintain audit logs, and display contact details for functional helpdesks. In addition, at least 2% of all ATMs must include tactile symbols to assist visually impaired users.
ATMs are further mandated to dispense cash before returning cards, permit free PIN changes, issue receipts for all transactions except balance enquiries, clearly display transaction fees, dispense clean banknotes, and operate with backup power systems to minimise downtime.
Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the reason and provide an estimated time for restoration.
The CBN will ensure compliance through periodic audits, on-site inspections, and monthly reports from ATM operators detailing the number and location of deployed machines. Institutions found in violation of the guidelines will face sanctions, though specific penalties were not disclosed.
The apex bank stated that the reform became necessary due to the growing number of complaints about failed transactions, cybercrime, and declining service quality, noting that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”
Nigeria’s electronic payments sector has expanded significantly in recent years, with around 200 million cardholders and increasing adoption of digital banking. However, network disruptions, weak infrastructure, and delays in transaction reversals have continued to affect public confidence.
These new guidelines, which follow eight months after the last adjustment of ATM fees, are expected to streamline service delivery, strengthen transaction security, and ensure greater accountability among banks. Stakeholders are invited to submit their feedback before the final policy is approved, which could take effect before the end of the year.
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