CBN has ordered banks to refund failed ATM transactions within 48 hours.
NaijaOnPoint Nigeria reports that the Central Bank of Nigeria (CBN) has issued a new directive ordering Deposit Money Banks and financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, in a move aimed at improving consumer protection and rebuilding public trust in the banking system.
The directive is contained in a draft document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released on Saturday and signed by Musa I. Jimoh, Director of the Payments System Policy Department. The CBN has invited feedback from banks, payment service providers, and ATM operators before October 31, 2025.
Under the new guideline, failed ‘on-us’ transactions—those carried out by customers using their own bank’s ATM—must be automatically reversed. If this is not possible due to technical issues, banks must manually refund the customer within 24 hours. For ‘not-on-us’ transactions conducted via another bank’s ATM, refunds must be processed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stated.
The CBN also mandated the deployment of automated reversal systems to eliminate manual complaint filing. Any funds held from failed disbursements must be promptly reconciled and returned to customers.
The guidelines address persistent complaints about delayed refunds, poor service quality, and network failures, while also aiming to align Nigeria’s payment infrastructure with global banking standards.
In a bid to improve accessibility, the apex bank also directed that banks must provide at least one ATM per 5,000 active cards, with gradual implementation targets of 30% by 2026, 60% by 2027, and full compliance by 2028. Any new installation, relocation, or deactivation of ATMs will now require prior approval from the CBN.
To enhance security and reliability, all ATMs must include anti-skimming features, CCTV surveillance, backup power, and Payment Card Industry Data Security Standards (PCI-DSS) compliance. Machines must also display clear transaction fees, issue receipts, allow free PIN changes, and only dispense clean banknotes.
Additionally, at least 2% of ATMs must have tactile features for visually impaired users. ATMs are now required to dispense cash before returning cards to prevent card trapping.
The guideline further limits ATM downtime to 72 consecutive hours, after which operators must publicly disclose the reason and provide a restoration timeline.
The CBN said enforcement will involve routine audits, inspections, and monthly reports from operators, warning that non-compliance will attract sanctions.
Explaining the motive behind the reform, the apex bank said it was responding to rising cases of failed transactions, cybercrime, and poor service quality, noting that the goal is to build a seamless, secure, and inclusive payment system for all Nigerians.
Implementation of the final policy is expected before the end of 2025 after stakeholder consultations conclude.