In a decisive move to strengthen consumer protection and rebuild public confidence in Nigeria’s financial system, the Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMBs) and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The directive is contained in a draft guideline titled ‘Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria’, released yesterday by the apex bank.
The document by the Director of the Payments System Policy Department, Misa I. Jimoh was circulated to banks, payment service providers, card schemes and independent ATM deployers, seeking stakeholder feedback by 31 October 2025.
According to the CBN, failed ‘on-us’ transactions—those conducted on a customer’s own bank ATM—must be reversed instantly. However, where technical challenges make instant reversal impossible, banks are required to process refunds manually within 24 hours.
For ‘not-on-us’ transactions—those involving ATMs operated by other banks—refunds must be processed within 48 hours.
‘Customers must not be made to suffer for failed transactions caused by system errors or network failures’, the circular stated.
The CBN directed all banks and ATM operators to deploy technology capable of automatically reversing failed or partial transactions, removing the need for customers to file complaints.
Financial institutions holding customer funds from failed ATM withdrawals are to reconcile and refund such balances immediately.
The apex bank explained that the move follows increasing complaints from customers over delayed refunds and poor service delivery across the banking industry.
It said the reforms were part of broader efforts to modernise the nation’s payment infrastructure and align Nigeria’s financial system with global standards.
Beyond refund timelines, the new draft guidelines propose sweeping reforms to ATM operations across the country.
Under the new framework, banks and card issuers are required to deploy at least one ATM for every 5,000 active cards.
Institutions are to achieve 30 per cent compliance by 2026, 60 per cent by 2027, and full compliance by 2028.
Any future ATM deployment, relocation, or decommissioning must first receive CBN approval.
For customer safety and improved accessibility, ATMs must be installed in enclosed or well-lit areas, equipped with anti-skimming devices, CCTV cameras, and compliant with the Payment Card Industry Data Security Standards (PCI DSS).
Machines are also required to display functional helpdesk contacts, maintain audit logs and ensure that at least two per cent of all deployed ATMs feature tactile symbols for visually impaired users.
Additionally, ATMs must: Dispense cash before returning cards; Allow free Personal Identification Number (PIN) changes; Issue receipts for all transactions except balance inquiries; Clearly display all transaction fees; Dispense only clean banknotes; and Maintain backup power to minimize downtime.
The CBN also set strict standards for ATM uptime, stipulating that downtime must not exceed 72 consecutive hours. Operators are required to publicly disclose the causes of service disruption and the estimated restoration period if the downtime extends beyond this limit.
To ensure compliance, the apex bank said it will conduct regular audits, on-site inspections, and require monthly reports from all ATM operators detailing the number and location of deployed machines.
Institutions found to be non-compliant will face appropriate sanctions.
The central bank said the reforms were necessary, given the rising cases of failed transactions, cyber fraud, and deteriorating service quality in the financial system.
‘The goal is to build a payments system that works seamlessly for everyone—urban and rural users alike’, the CBN stated.
Nigeria’s electronic payments landscape has expanded rapidly, with over 200 million cardholders and an increasing shift toward digital banking.
However, persistent network failures, inadequate infrastructure, and delayed refunds have continued to erode public trust.
The latest draft guidelines—coming just eight months after the review of ATM fees—are expected to streamline operations, enhance consumer experience, improve security, and ensure greater accountability from banks and payment service providers.
Stakeholders have until 31 October 2025, to submit their feedback before the final guidelines take effect, likely before the end of the year.
