The Central Bank of Nigeria (CBN) has issued a new directive compelling Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, as part of efforts to boost consumer protection and public confidence in the banking system.
The directive, contained in a draft document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” was released on Saturday. It was signed by Musa I. Jimoh, Director of the Payments System Policy Department, and circulated to banks, payment service providers, card schemes, and independent ATM operators for review and comments by October 31, 2025.
Under the proposed rules, failed “on-us” transactions — those made using a customer’s own bank’s ATM — must be automatically reversed. If this fails due to technical issues, banks are required to process manual refunds within 24 hours. For “not-on-us” transactions, where customers use another bank’s ATM, 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.
The CBN emphasized that institutions must deploy advanced systems capable of automatically reversing failed or partial transactions, thereby ending the need for manual complaints. Any funds trapped from failed withdrawals must be reconciled and refunded immediately.
The move follows increasing complaints about delayed refunds, frequent ATM failures, and poor service quality across the banking sector. The CBN said the new framework aims to modernize Nigeria’s payment systems and align them with global standards.
As part of broader reforms, the apex bank also introduced new ATM deployment requirements, mandating banks and card issuers to provide at least one ATM per 5,000 active cards, with phased implementation — 30% compliance by 2026, 60% by 2027, and full compliance by 2028.
In addition, all ATM installations, relocations, or deactivations will now require CBN approval.
The guidelines also set stringent security and accessibility standards, requiring ATMs to feature:

Anti-skimming technology and CCTV surveillance
Adequate lighting or enclosed locations
Tactile features for visually impaired users (at least 2% of all ATMs)
Backup power systems to prevent downtime

ATMs must also dispense clean notes, display transaction fees, and return cards after cash is dispensed.
The new rules further cap ATM downtime at 72 consecutive hours, after which operators must publicly disclose the cause and estimated restoration time.
The CBN said compliance will be monitored through regular audits, inspections, and monthly operator reports detailing ATM deployment and locations. Non-compliant institutions will face sanctions.
Explaining the rationale behind the reforms, the apex bank said:
“This move is driven by increasing reports of failed transactions, cybercrime, and deteriorating service quality. The goal is to build a payments system that works seamlessly for everyone — urban and rural users alike.”
Stakeholders are invited to submit feedback before the final version of the guidelines is issued, with implementation expected before the end of the year.
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