The Central Bank of Nigeria (CBN) has ordered that Banks and other financial institutions must make refunds to customers for failed Automated Teller Machine transactions within 48 hours.
The directive comes in a draft guideline released this weekend and titled: “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”
Signed by CBN’s Director of Payments System Policy Department, Musa I. Jimoh, the memo was circulated to banks, payment service providers, card schemes, and independent ATM deployers.
Under the draft, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly.
If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours.
For “not-on-us” transactions, involving other banks’ ATMs, 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 stressed.
The apex bank said banks and ATM acquirers should put in place technology to automatically reverse failed or partial transactions, removing the need for customers to lodge complaints.
Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.
According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.
The guidelines will also overhaul ATM operations nationwide.
Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30per cent compliance in 2026, 60per cent in 2027, and full compliance by 2028.
Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.
To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.
Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts.
At least 2% of all ATMs must feature tactile symbols for visually impaired customers.
ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only clean banknotes, and provide backup power to reduce downtime.
Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.
Defaulting banks risk sanctions, although fines were not specified.
According to the apex bank, the overhaul became necessary due to rising complaints about failed transactions, cyber fraud, and declining service quality.
It said that the “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”
