The Central Bank of Nigeria (CBN) has introduced a new set of draft guidelines for Automated Teller Machine (ATM) operations in furtherance of its regulatory mandate of deepening financial inclusion and enhancing transparency in transactions and customers’ confidence in the banking system.
Under the new draft guidelines, card issuers are required to deploy at least one ATM for every 5,000 payment cards in circulation by the year 2028, and the implementation timeline set for 2026 with a 30 percent target in 2026.
The apex bank also directed that all ATM installations must receive prior approval and be positioned in secure, accessible locations to ensure safety and ease of use.
On the Refund Timeline for Failed Transactions, the CBN stated that to enhance customer satisfaction, failed “on-us” transactions, that is, those carried out on a bank’s own ATMs, should be reversed instantly, adding however, that in cases requiring manual intervention, the refund must be completed within 24 hours.
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Similarly, for “not-on-us” transactions, those made using another bank’s ATM, the refund timeline should not exceed 48 hours.
The new guidelines, based on the Enhanced Security Requirements components, mandated all ATMs to have functioning surveillance cameras that do not record customers’ keystrokes. Each machine must also be equipped with anti-skimming devices to prevent fraud and card cloning.
In addition, all financial institutions are to change ATM encryption keys annually and comply with the Payment Card Industry Data Security Standard (PCI DSS) to maintain system integrity.
The guidelines also stated that for Operational Standards and Customer Transparency, ATMs were expected to have no more than 72 hours of downtime in any given period. Machines must also be well-stocked with cash to avoid service interruptions.
In addition, the apex bank required all ATMs to display transaction fees clearly before completion and issue receipts for every transaction except balance inquiries.
The draft guidelines Oversight and Penalties for Defaulters indicated that apex bank would be conducting periodic audits to ensure strict compliance. Financial institutions are also required to submit monthly operational reports by the fifth day of each month.
The CBN warned that financial institutions that fail to comply with these new rules would face sanctions.
It stated that the draft guidelines were open for stakeholder review before final approval, and expressed optimism that the reforms would modernise ATM usage, enhance financial inclusion, and strengthen consumer confidence in the nation’s banking system.
