The policy is part of a sweeping draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” which was released on Saturday for industry review and feedback. Signed by Musa I. Jimoh, Director of the Payments System Policy Department, the document invites comments from banks, payment service providers, card schemes, and independent ATM operators before October 31, 2025.
Under the proposed framework, banks are now expected to automatically reverse failed “on-us” transactions—those that occur when customers use their own bank’s ATMs. If technical issues delay the automatic reversal, refunds must be processed manually within 24 hours. For “not-on-us” transactions involving another bank’s ATM, the refund window extends to 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stated, underscoring the apex bank’s stance on accountability within the financial system.
Beyond transaction reversals, the CBN is also directing banks and ATM operators to deploy systems capable of automatically identifying and correcting failed or partial transactions. Institutions holding funds from such incomplete disbursements will be required to promptly reconcile and return the affected balances to customers.
The move addresses long-standing complaints about delayed refunds, poor ATM reliability, and deteriorating customer service standards. It also reflects the CBN’s intention to modernise Nigeria’s payment infrastructure and align domestic practices with international benchmarks.
The new guidelines extend beyond refund timelines to cover ATM deployment, accessibility, and operational standards. Every bank and card issuer must now maintain at least one ATM for every 5,000 active cards, with gradual implementation targets set at 30% by 2026, 60% by 2027, and full compliance by 2028. Additionally, any installation, relocation, or removal of an ATM will require prior CBN approval.
In the area of security and functionality, ATMs will be mandated to include anti-skimming technology, CCTV surveillance, and compliance with Payment Card Industry Data Security Standards. They must also display valid helpdesk contact details and issue receipts for all transactions except balance inquiries.
To promote inclusivity, at least 2% of all ATMs are to feature tactile designs for visually impaired users. Machines will also be configured to dispense cash before returning cards, allow free PIN changes, display clear transaction fees, and only dispense clean banknotes.
Downtime is another critical focus: the CBN has capped allowable ATM downtime at 72 consecutive hours. Beyond that period, operators must publicly disclose the cause of the disruption and provide an expected restoration timeline.
Compliance with these new rules will be monitored through regular audits, on-site inspections, and monthly deployment reports. While the document stops short of detailing specific penalties, it warns that sanctions will apply to institutions that fail to meet the required standards.
According to the CBN, the initiative was prompted by growing reports of failed transactions, cyber threats, and declining service quality across the banking sector. “The goal is to build a payments system that works seamlessly for everyone—urban and rural users alike,” the bank explained.
Stakeholders have until the end of October to submit feedback, after which the final version of the guidelines is expected to be adopted before the end of the year, ushering in what could become the most comprehensive overhaul of Nigeria’s ATM operations in over a decade.