In a sweeping move to strengthen consumer protection and restore confidence in the financial system, the Central Bank of Nigeria (CBN) has directed Deposit Money Banks 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 on Saturday by the apex bank. The document, signed by Musa I. Jimoh, Director of the Payments System Policy Department, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, inviting stakeholder feedback by October 31, 2025.
According to the draft, failed “on-us” transactions—where customers use their own bank’s ATM—must be reversed instantly. If technical issues prevent immediate reversal, refunds must be completed manually within 24 hours.
For “not-on-us” transactions, involving other banks’ ATMs, refunds are to be processed within 48 hours.
> “Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular emphasized.
The CBN also mandated banks and ATM acquirers to deploy technology capable of automatically reversing failed or partial transactions, eliminating the need for customers to file complaints. Institutions holding customer funds from failed disbursements must reconcile and return balances immediately.
The apex bank said the measures respond to widespread frustration over delayed refunds and poor service delivery. The reforms are part of broader efforts to modernize Nigeria’s payment infrastructure and align it with global standards.
Beyond refund timelines, the guidelines introduce comprehensive reforms in ATM operations nationwide.
Banks and card issuers must deploy at least one ATM for every 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. Any future ATM deployment, relocation, or decommissioning must receive prior approval from the CBN.
For improved safety and accessibility, ATMs must be installed in enclosed or well-lit areas, fitted with anti-skimming devices and CCTV cameras, and meet Payment Card Industry Data Security Standards (PCI DSS). Machines should display functional helpdesk contacts, maintain audit logs, and at least 2% of all ATMs must feature tactile symbols for visually impaired users.
ATMs are also required to:
Dispense cash before returning cards;
Allow free PIN changes;
Issue receipts for all transactions except balance inquiries;
Display clear transaction fees;
Dispense only clean banknotes; and
Maintain backup power to minimize downtime.
Operators must not allow downtime to exceed 72 consecutive hours and must publicly disclose causes and restoration timelines if exceeded.
To enforce compliance, the CBN will conduct regular audits, on-site inspections, and require monthly reports from ATM operators detailing deployments and locations. Non-compliant institutions risk sanctions.
The bank said the reforms are necessary amid rising complaints about failed transactions, cyber fraud, and deteriorating service quality.
> “The goal is to build a payments system that works seamlessly for everyone—urban and rural users alike,” the apex bank stated.
Nigeria’s electronic payment system has expanded rapidly, with over 200 million cardholders and increasing reliance on digital banking. However, persistent network failures, infrastructure gaps, and delayed refunds have eroded public confidence.
The new guidelines—coming eight months after a review of ATM fees—are expected to streamline service delivery, enhance security, and hold banks more accountable. Stakeholders are invited to submit feedback before the final policy takes effect, likely before the end of the year.
