The Central Bank of Nigeria (CBN) is taking a firm stance on one of Nigerians’ most common banking frustrations — failed ATM transactions.
In new draft guidelines released on October 9, 2025, the apex bank directed commercial banks and other financial service providers to provide instant refunds for failed Automated Teller Machine (ATM) transactions.
The document, signed by Musa I. Jimoh, Director of the Payments System Policy Department, outlines measures aimed at strengthening consumer protection, improving service reliability, and boosting confidence in Nigeria’s payment system.
Stakeholders have until October 31, 2025, to send in their feedback before the guidelines are finalized.
Instant Refunds — No More Waiting Days for Reversals
Under the new rules, failed transactions that occur on a customer’s own bank’s ATM — known as on-us transactions — must be reversed immediately.
If a technical issue prevents an instant refund, banks will be required to resolve it manually within 24 hours.
For not-on-us transactions — when a customer uses another bank’s ATM — the refund must be completed within 48 hours.
ATM operators will also need to set up automatic refund systems, so reversals happen even before customers file complaints. The CBN says this move will reduce the frustration often tied to delayed refunds and strengthen public trust in digital banking.
Overhauling ATM Deployment and Standards
Beyond refund timelines, the CBN is proposing a complete overhaul of how ATMs are deployed and maintained across the country.
Banks and card issuers will now be required to deploy at least one ATM for every 5,000 cards issued — a goal that will be rolled out gradually:
- 30% compliance by 2026
- 60% by 2027
- Full compliance by 2028
Each deployment, relocation, or removal of an ATM will also require CBN approval.
The guidelines further introduce stricter standards for machine quality and user experience. ATMs must:
- Comply with Payment Card Industry Data Security Standards (PCI DSS)
- Keep detailed audit logs for disputes
- Feature clear card orientation symbols
- Dispense cash before releasing cards to prevent forgotten money
- Provide receipts on request and allow free PIN changes
- Use only fit banknotes
- Operate in secure, well-lit areas with anti-skimming and surveillance systems
To promote inclusion, at least 2% of all ATMs must include tactile symbols for visually impaired users.
Driving Trust and Efficiency
The CBN says it will ensure compliance through audits, on-site inspections, and monthly deployment reports.
Non-compliant institutions risk penalties, though details on sanctions are yet to be disclosed.
This move comes just months after the CBN scrapped the “three free withdrawals” policy on other banks’ ATMs — signaling a broader push to reform the sector and enhance customer experience.
By enforcing stricter refund timelines and improved operational standards, the CBN is sending a clear message: Nigerians deserve a faster, safer, and more reliable ATM experience.
