The Central Bank of Nigeria (CBN) has launched new draft tips compelling banks to offer instantaneous refunds for failed Automated Teller Machine (ATM) transactions.
The foundations, launched on October 9, 2025, are designed to strengthen shopper safety, enhance service reliability, and guarantee higher accountability in Nigeria’s monetary system.
The round, signed by Musa I. Jimoh, Director of the Funds System Coverage Division, was addressed to banks, fee service suppliers, card schemes, and impartial ATM deployers. Stakeholders have till October 31, 2025, to offer suggestions earlier than the rules are finalised.
Strict timelines for failed transaction refunds
Underneath the draft framework, all on-us transactions—the place a customer makes use of their very own bank’s ATM—should be reversed immediately. The CBN famous that if instantaneous reversal just isn’t doable because of technical hitches or system glitches, the transaction should be manually corrected inside 24 hours.
For not-on-us transactions—the place prospects use one other bank’s ATM—the utmost refund window has been set at 48 hours.
ATM acquirers are additionally required to place in place mechanisms that robotically provoke refunds with out ready for customer complaints or prompts from the issuing bank. As well as, they need to reconcile and refund all funds of their possession that belong to prospects on account of failed or partial money disbursements.
The CBN emphasised that this measure is geared toward bettering shopper confidence within the banking system and decreasing the frustration typically related to delayed transaction reversals.
Broader reforms to ATM deployment and operations
The refund directive is a part of a wider overhaul of Nigeria’s ATM regulatory framework, which replaces earlier provisions within the 2020 digital funds tips. The CBN defined that the evaluation was needed in mild of the fast evolution of the fee’s ecosystem, rising cyber threats, and the push to develop monetary inclusion.
The brand new guidelines require banks and card issuers to deploy a minimal of 1 ATM for each 5,000 playing cards issued. This goal will probably be phased in over three years, with 30% compliance anticipated in 2026, 60% in 2027, and full compliance by 2028. Any deployment, redeployment, or decommissioning of ATMs would require prior approval from the apex bank.
ATMs should additionally meet larger operational requirements. They’re to be totally compliant with Fee Card Trade Information Safety Requirements, keep detailed audit logs for dispute decision, and supply clear card orientation symbols.
At the very least 2% of all ATMs deployed by every bank should be outfitted with tactile symbols to serve visually impaired prospects.
Machines should be sited in safe, well-lit areas, fitted with anti-skimming gadgets, and backed by surveillance cameras that monitor transactions with out recording keystrokes.
Buyer comfort additionally options prominently within the draft guidelines. ATMs should dispense money earlier than releasing playing cards to scale back the chance of deserted money, present receipts when requested, enable free private identification quantity (PIN) modifications, and be certain that solely match banknotes are allotted. Operators are additionally mandated to offer backup energy, functioning helpdesk strains, and display prompts that supply customers extra time to finish transactions.
What it’s best to know
The apex bank acknowledged that it will implement compliance by way of common audits, on-site inspections, and necessary month-to-month stories from ATM operators itemizing all new deployments and their places. Establishments that fail to adjust to any a part of the rules will face penalties, although the round didn’t specify the dimensions of sanctions.
By setting strict timelines for failed transaction refunds and overhauling operational necessities, the CBN hopes to enhance reliability in ATM providers, cut back customer complaints, and align Nigeria’s fee system extra intently with worldwide requirements.
The contemporary tips come almost eight months after the CBN introduced a significant revision to its ATM transaction charges, successfully eliminating the three free month-to-month withdrawals beforehand granted to prospects utilizing different banks’ ATMs.
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