The Central Bank of Nigeria (CBN) has introduced new draft guidelines compelling banks to provide instant refunds for failed Automated Teller Machine (ATM) transactions.
Under the draft framework, all on-us transactions—where a customer uses their own bank’s ATM—must be reversed instantly. The CBN noted that if instant reversal is not possible due to technical hitches or system glitches, the transaction must be manually corrected within 24 hours.
For not-on-us transactions—where customers use another bank’s ATM—the maximum refund window has been set at 48 hours.
ATM acquirers are also required to put in place mechanisms that automatically initiate refunds without waiting for customer complaints or prompts from the issuing bank. In addition, they must reconcile and refund all funds in their possession that belong to customers as a result of failed or partial cash disbursements.
The new guidelines are contained in a circular signed by Musa Jimoh, Director of the Payments System Policy Department, andaddressed to banks, payment service providers, card schemes, and independent ATM deployers, and designed to strengthen consumer protection, improve service reliability, and ensure greater accountability in Nigeria’s financial system.
Stakeholders have until October 31, 2025, to provide feedback before the guidelines are finalised.
The CBN explained that this measure is aimed at improving consumer confidence in the banking system and reducing the frustration often associated with delayed transaction reversals.
The refund directive is part of a wider overhaul of Nigeria’s ATM regulatory framework, which replaces earlier provisions in the 2020 electronic payments guidelines. The CBN explained that the review was necessary in light of the rapid evolution of the payment’s ecosystem, rising cyber threats, and the push to expand financial inclusion.
The new rules require banks and card issuers to deploy a minimum of one ATM for every 5,000 cards issued. This target will be phased in over three years, with 30 per cent compliance expected in 2026, 60 per cent in 2027, and full compliance by 2028.
It added that any deployment, redeployment, or decommissioning of ATMs will require prior approval.
The CBN further stated that ATMs must also meet higher operational standards and are to be fully compliant with Payment Card Industry Data Security Standards, maintain detailed audit logs for dispute resolution, and provide clear card orientation symbols.
It said at least 2 per cent of all ATMs deployed by each bank must be equipped with tactile symbols to serve visually impaired customers.
Under the new guidelines, machines must be sited in secure, well-lit areas, fitted with anti-skimming devices, and backed by surveillance cameras that monitor transactions without recording keystrokes.
Customer convenience also features prominently in the draft rules and ATMs must dispense cash before releasing cards to reduce the risk of abandoned cash, provide receipts when requested, allow free personal identification number (PIN) changes, and ensure that only fit banknotes are dispensed.
Operators are also mandated to provide backup power, functioning helpdesk lines, and screen prompts that offer users more time to complete transactions.
The CBN said it would enforce compliance through regular audits, on-site inspections, and mandatory monthly reports from ATM operators listing all new deployments and their locations and that institutions that fail to comply with any part of the guidelines will face penalties, though the circular did not specify the scale of sanctions.
