The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. The move aims to protect consumers and restore confidence in the banking sector.
This directive was included in a draft guideline released by the apex bank on Saturday, titled *“Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”*
Signed by Musa I. Jimoh, Director of the Payments System Policy Department, the document was sent to banks, payment service providers, card schemes, and independent ATM operators, requesting stakeholder feedback by **October 31, 2025**.
Under the guideline, failed transactions on a customer’s own bank’s ATM (“on-us” transactions) must be reversed immediately. If not possible, the refund should be completed manually within 24 hours. For transactions involving other banks’ ATMs (“not-on-us”), refunds must be made within 48 hours.
The CBN stressed that *“customers must not suffer for failed transactions caused by system errors or network failures.”* Banks and ATM operators are also mandated to deploy systems that automatically reverse failed or partial transactions without requiring customers to file complaints.
Institutions holding funds from failed disbursements must reconcile and refund affected customers immediately.
The new rules also aim to modernise Nigeria’s ATM infrastructure. Banks are now required to provide at least one ATM per 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028.
All ATMs must include anti-skimming devices, CCTV cameras, proper lighting, and backup power. They must also comply with data security standards, issue receipts for transactions, display helpdesk contacts, and serve visually impaired users with tactile symbols.
Additionally, ATMs are required to **dispense cash before returning cards**, allow free PIN changes, and only dispense clean banknotes. Operators must not allow downtime beyond 72 hours and must publicly announce the reason for any prolonged outage.
The CBN said it will ensure compliance through regular audits, inspections, and monthly reports. Sanctions will be applied to any defaulting institution.
According to the apex bank, these reforms come in response to growing complaints about failed transactions and poor customer service, aiming to build *“a payment system that works seamlessly for everyone.”*
Nigeria’s digital banking and card usage continue to grow rapidly, but network instability and delayed reversals have long been a source of frustration. The new guidelines are expected to strengthen reliability, consumer protection, and confidence in the nation’s financial system.
