The Central Bank of Nigeria (CBN) has issued new draft guidelines directing Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The directive, contained in a document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria” and signed by the Director of Payments System Policy Department, Musa I. Jimoh, was released on Saturday for stakeholder feedback before October 31, 2025.
According to the proposed policy, failed transactions carried out on a customer’s own bank ATM (“on-us”) must be reversed instantly. If immediate reversal is impossible due to technical issues, a manual refund must be processed within 24 hours. For interbank transactions (“not-on-us”), refunds are to be completed within 48 hours.
The CBN stressed that customers should not bear the burden of system errors or network failures, mandating banks to adopt technologies that automatically reverse failed or partial transactions without requiring customer complaints.
The guideline also introduces reforms in ATM operations across Nigeria. Banks and card issuers are required to install one ATM for every 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. Any new ATM installations, relocations, or removals will require CBN approval.
Security and accessibility standards have also been raised — ATMs must have anti-skimming devices, CCTV coverage, and tactile features for the visually impaired. Machines are to dispense cash before returning cards, display clear transaction fees, issue receipts (except for balance inquiries), use clean notes, and maintain backup power.
In cases of downtime lasting over 72 hours, operators must inform the public and disclose expected restoration timelines.
The apex bank said the move is part of broader efforts to modernize Nigeria’s payment system, address growing complaints about failed transactions and poor service quality, and align the country’s financial infrastructure with global standards.
CBN plans to enforce compliance through regular inspections and monthly reports, with sanctions for defaulting institutions. The policy, expected to take effect before the end of the year, aims to rebuild consumer trust, improve service reliability, and strengthen the digital banking experience nationwide.
