The Central Bank of Nigeria (CBN) has unveiled a comprehensive set of new draft guidelines for Automated Teller Machine (ATM) operations, effectively superseding all previous regulations.
The far-reaching framework lays out a ambitious, time-bound strategy to dramatically improve physical access to cash, fortify security protocols, and ensure swift redress for customers, marking a significant shift towards a more reliable and user-centric banking experience for millions of Nigerians.
A cornerstone of the new guidelines is a mandatory deployment quota designed to directly address the perennial issue of ATM scarcity.
In a first-of-its-kind directive, the CBN has mandated that all card issuers must deploy one ATM for every 5,000 cards issued, a target to be fully achieved by 2028. To ensure steady progress, financial institutions are required to meet 30% of this quota by the end of 2026. Furthermore, every new ATM installation will require prior approval from the CBN and must be situated in a secure and accessible location, moving beyond mere quantity to ensure quality and safety of service.
The guidelines also deliver a powerful blow to one of the most common customer frustrations: failed transactions.
The CBN has instituted a strict timeline for refunds, demanding instant reversals for failed “on-us” transactions (those within the same bank) and a maximum of 24 hours if a manual process is required.
For “not-on-us” transactions (interbank), refunds must be processed within 48 hours, a rule that promises to end the agonizing wait for funds to be returned to accounts. On the security front, the regulations leave no room for compromise.
All ATMs must be equipped with functional surveillance cameras—though explicitly prohibited from recording keystrokes to protect PIN integrity—along with anti-skimming devices, and must undergo annual encryption key changes.
Full compliance with the global Payment Card Industry Data Security Standard (PCI DSS) is now compulsory, creating a fortified barrier against digital fraud.
Operational integrity is further reinforced through stipulations that ATMs must not be offline for more than 72 consecutive hours and should have constant cash availability.
Banks are also mandated to display all applicable charges clearly and provide transaction receipts for every action except balance inquiries.
To ensure these rules are more than just words on paper, the CBN will conduct regular audits and requires financial institutions to submit detailed monthly compliance reports by the 5th of the following month, with clear penalties for non-compliance.
Collectively, these guidelines represent the most robust effort in years to transform the humble ATM from a point of frequent frustration into a pillar of a secure, efficient, and inclusive financial system.
