In a decisive move to strengthen Nigeria’s banking infrastructure and protect consumers, the Central Bank of Nigeria (CBN) has released a new draft guideline on Automated Teller Machine (ATM) operations, replacing all previous regulations governing the service.
The comprehensive framework, now open for stakeholder review, sets ambitious standards that aim to improve ATM accessibility, enhance security, ensure faster refunds, and strengthen consumer confidence in the nation’s financial system.
Raising the Bar for ATM Deployment
According to the new directive, card issuers are now required to deploy one ATM for every 5,000 active cards by 2028, with an initial compliance milestone of 30 percent by 2026.
This initiative is designed to close the service gap between urban and rural areas, ensuring that Nigerians—particularly those in underserved communities—have better access to cash and electronic financial services.
The CBN also emphasized that all ATM deployments must receive its explicit approval and be installed in secure, well-lit, and accessible locations, to guarantee both safety and convenience for users.
Faster Refunds, Stronger Consumer Redress Mechanism
A major highlight of the new guidelines is the CBN’s focus on instant and transparent customer refunds. For failed “on-us” transactions (those occurring within the same bank’s network), the guidelines mandate instant reversal. Where manual intervention is required, the refund must be completed within 24 hours.
For “not-on-us” transactions involving different banks or payment networks, refunds must be processed within 48 hours.
These provisions, according to the apex bank, are part of its ongoing commitment to protect depositors’ funds, ensure fair treatment of customers, and build greater trust in Nigeria’s e-payment ecosystem.
Security Takes Centre Stage
The new ATM standard places heavy emphasis on security and fraud prevention.
Each ATM must now be equipped with surveillance cameras to monitor all activities around the terminal without recording customers’ keystrokes. Additionally, every machine must have anti-skimming devices installed to prevent card cloning and related cybercrimes.
Operators are also required to change their encryption keys annually, maintaining full compliance with Payment Card Industry Data Security Standards (PCI DSS)—a global benchmark for financial data protection.
This renewed focus on security highlights CBN’s commitment to combatting fraud, enhancing transaction safety, and safeguarding the integrity of Nigeria’s payment infrastructure.
Improving Service Quality and Operational Transparency
Beyond security, the CBN is pushing for greater reliability and efficiency in ATM operations. Under the new guideline, no ATM should remain out of service for more than 72 hours, while operators must ensure constant cash availability at their terminals.
Furthermore, all ATMs must display applicable fees clearly before transactions are processed, ensuring full disclosure and transparency. Receipts must also be printed for every transaction, except balance inquiries.
These measures are intended to enhance user experience, eliminate hidden charges, and promote consumer satisfaction across Nigeria’s growing digital economy.
Compliance and Regulatory Oversight
To guarantee adherence, the CBN will conduct regular audits of ATM operators and require monthly compliance reports to be submitted by the 5th day of every month.
Failure to comply with the new standards will attract sanctions and penalties, depending on the severity of the violation.
The CBN said this compliance-driven approach will “ensure that Nigeria’s ATM network remains reliable, secure, and customer-centric,” further aligning with the bank’s long-term goal of modernizing the financial services landscape.
Driving Financial Inclusion and Economic Access
Experts have hailed the draft guidelines as a progressive step toward improving financial inclusion in Nigeria. With over 38 million unbanked adults still outside the formal banking system, the CBN’s strategy is seen as crucial to bridging access gaps, particularly for those in rural and semi-urban regions.
By setting measurable targets for ATM deployment, the apex bank is also promoting shared accountability among financial institutions, ensuring that every Nigerian has access to convenient and secure cash withdrawal channels.
Looking Ahead
The CBN’s move to update the ATM operation framework reflects a broader transformation agenda within the Nigerian financial sector—one that prioritizes innovation, security, and inclusiveness.
Stakeholders, including banks, fintechs, and independent ATM deployers, are expected to review and align their operations with the new guidelines ahead of final implementation.
As the 2028 target draws closer, the Central Bank’s initiative stands as a bold policy direction—a blend of reform, regulation, and reassurance—designed to keep Nigeria’s payment infrastructure resilient, transparent, and future-ready.
The Central Bank of Nigeria (CBN) has released new draft guidelines for ATM operations, setting a 2028 target for improved access, tighter security standards, faster refunds, and stricter compliance measures to enhance consumer protection and financial inclusion across Nigeria.
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