The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks (DMBs) and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, in a new move aimed at boosting consumer protection and restoring public confidence in Nigeria’s financial system.
The directive was contained in a draft document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released by the apex bank’s Director of Payments System Policy Department, Misa I. Jimoh. The CBN is seeking stakeholder feedback before October 31, 2025, ahead of the guideline’s final adoption.
According to the CBN, failed transactions that occur on a customer’s own bank ATM, known as “on-us” transactions—must be reversed instantly. If technical issues prevent this, banks are required to manually process the refund within 24 hours. For transactions carried out on another bank’s ATM, referred to as “not-on-us” transactions, refunds must be completed within 48 hours.
The CBN emphasized that customers should not suffer financial loss due to system errors or network failures. All banks and payment operators are now mandated to deploy technologies that allow automatic reversals for failed or partial transactions, eliminating the need for customers to lodge complaints.
The new directive follows rising complaints from bank users about delayed refunds, poor service quality, and unresolved transaction failures. The central bank said these reforms are part of its broader effort to modernize Nigeria’s payment infrastructure and align the nation’s financial system with global best practices.
CBN Introduces Comprehensive ATM Operation Reforms
Beyond refund timelines, the CBN’s draft guidelines propose far-reaching reforms to ATM operations across the country.
Under the new framework, banks and card issuers must deploy one ATM for every 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. Any deployment, relocation, or removal of ATMs must also receive CBN approval.
For improved safety and accessibility, all ATMs must be installed in well-lit, enclosed areas, equipped with CCTV cameras, anti-skimming devices, and compliant with the Payment Card Industry Data Security Standards (PCI DSS). Machines must also display visible helpdesk contacts, maintain audit logs, and ensure that at least two percent of deployed ATMs have tactile symbols for visually impaired users.
Higher Standards for Customer Experience and Service Delivery
The CBN has outlined a series of mandatory operational standards for banks and ATM operators, including:
- ATMs must dispense cash before returning cards
- Free PIN changes for customers
- Receipts for all transactions except balance inquiries
- Transparent display of transaction fees
- Dispensing of only clean banknotes
- Reliable backup power systems to minimize downtime
In addition, ATM downtime must not exceed 72 consecutive hours. Operators are required to publicly disclose service disruptions and provide an estimated restoration time if the outage persists beyond the limit.
To ensure compliance, the CBN will conduct regular audits, on-site inspections, and require monthly performance reports from all ATM operators. Financial institutions that fail to comply will face appropriate sanctions.
A Push for Transparency and Customer Trust
According to the CBN, the reforms were introduced in response to increasing cases of failed transactions, cyber fraud, and poor banking infrastructure. The goal, the apex bank said, is to build “a payments system that works seamlessly for everyone—urban and rural users alike.”
Nigeria’s electronic payment landscape has grown rapidly in recent years, with over 200 million cardholders and a surge in digital banking adoption. However, persistent network disruptions and refund delays have eroded public trust in the financial system.
The latest draft guidelines, coming just eight months after the last review of ATM fees, are expected to enhance customer experience, improve security, and strengthen accountability among banks and payment service providers.
Stakeholders have until October 31, 2025, to submit feedback before the CBN finalizes the new ATM refund and operations policy later this year.
