The Central Bank of Nigeria (CBN) has introduced draft guidelines that will compel banks to provide instant refunds for failed Automated Teller Machine (ATM) transactions to customers.
It issued the draft guidelines on Saturday, October 11, accompanied by a circular dated October 9 and signed by its Director of the Payments System Policy Department, Musa Jimoh.
The circular, ‘Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria’, was addressed to banks, payment service providers, card schemes, and independent ATM deployers.
CBN said it is seeking stakeholders to provide feedback on the draft guidelines before the framework is finalised, setting an October 31, 2025, deadline to receive the feedback.
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The new guidelines are designed to strengthen consumer protection, improve service reliability, and ensure greater accountability in Nigeria’s financial system, CBN said.
“Failed on-us ATM transaction reversals shall be instant.
“However, where instant reversal fails due to technical issues or other system glitches, the timeline for manual reversal shall not exceed 24 hours,” it introduced.
It added that “the timeline for refunds on failed not-on-us ATM transactions shall not
exceed 48 hours.”
ATM acquirers are required to put in place mechanisms that automatically initiate refunds without waiting for customer complaints or prompts from the issuing bank.
The operators must also reconcile and refund all funds in their possession that belong to customers as a result of failed or partial cash disbursements.
The CBN stressed that the measure is aimed at improving consumer confidence in the banking system and reducing the frustration often associated with delayed transaction reversals.
Overhauling ATM deployment and operations
The refund measure is part of a wider overhaul of the ATM regulatory framework, which replaces earlier provisions in the 2020 electronic payments guidelines.
CBN said the review guidelines are necessary in light of the rapid evolution of the payment ecosystem, rising cyber threats, and the push to expand financial inclusion.
It will require banks and card issuers to deploy a minimum of one ATM for every 5,000 cards issued.
It said 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.
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The apex bank noted that any deployment, redeployment, or decommissioning of ATMs will require prior approval from the apex bank.
It said ATMs must also meet higher operational standards and be fully compliant with Payment Card Industry Data Security Standards, maintain detailed audit logs for dispute resolution, and provide clear card orientation symbols.
At least two per cent of all ATMs deployed by each bank must be equipped with tactile symbols to serve visually impaired customers, it stated.
It reiterated that ATMs must be sited in secure, well-lit areas, fitted with anti-skimming devices, and backed by surveillance cameras that monitor transactions without recording keystrokes.
Pinnacle Daily reports that the draft guidelines come nearly eight months after CBN announced a revision to ATM transaction fees, removing the three free monthly withdrawals previously granted to customers using other banks’ ATMs.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
