The Central Bank of Nigeria (CBN) has instructed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, as part of reforms aimed at protecting consumers and restoring confidence in the financial system.
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 the Payments System Policy Department, was distributed to banks, payment service providers, card schemes, and independent ATM deployers, requesting stakeholder feedback by October 31, 2025.
According to the draft, failed “on-us” transactions—when customers use their bank’s own ATM—must be reversed immediately. Where technical issues prevent instant reversal, the bank must manually refund the customer within 24 hours.
For “not-on-us” transactions involving 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 stated.
In a major policy shift, the CBN also directed banks and ATM operators to deploy systems that automatically reverse failed or partial transactions, eliminating the need for customers to file complaints.
Institutions holding funds from unsuccessful disbursements must reconcile and return such balances promptly.
The CBN explained that these measures respond to growing public dissatisfaction over delayed refunds and poor customer service, forming part of broader efforts to enhance consumer protection, improve reliability, and modernize Nigeria’s payment systems in line with global best practices.
The guidelines also introduce sweeping changes to ATM operations nationwide.
Banks and card issuers must deploy at least one ATM for every 5,000 active cards, meeting compliance milestones of 30% in 2026, 60% in 2027, and full compliance by 2028.
Any new deployment, relocation, or decommissioning of ATMs will require CBN approval.
For security, all ATMs must be equipped with anti-skimming technology, CCTV cameras, and located in secure, well-lit environments.
Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts.
At least 2% of all ATMs must include tactile features for visually impaired users.
ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display transparent transaction fees, dispense only clean banknotes, and have backup power to minimize downtime.
Machine downtime must not exceed 72 consecutive hours, after which operators must publicly disclose the cause and the expected restoration timeline.
The CBN said it would ensure compliance through periodic audits, on-site inspections, and monthly operational reports from ATM operators detailing locations and deployments. Non-compliant institutions will face sanctions, though specific penalties were not stated.
According to the apex bank, the overhaul was prompted by rising complaints about failed transactions, cybercrime, and poor service delivery, adding that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”
Nigeria’s electronic payments system has expanded rapidly in recent years, with over 200 million cardholders relying heavily on digital banking. However, persistent network issues, inadequate infrastructure, and delayed transaction reversals have weakened public confidence.
The new guidelines, coming eight months after the revision of ATM charges, aim to improve service delivery, enhance security, and ensure accountability among banks.
Stakeholders are expected to submit feedback before the final policy is adopted, which could take effect before the end of the year.
