The Central Bank of Nigeria (CBN) has released a new draft guideline for Automated Teller Machine (ATM) operations across the country, introducing stricter standards for deployment, security, and consumer protection. The new directive, which supersedes previous regulations, is designed to enhance financial inclusion, improve transaction reliability, and safeguard users from fraud.
According to the draft, card-issuing banks are now required to deploy one ATM for every 5,000 active cards by the year 2028, beginning with 30 percent compliance by 2026. All ATM deployments must receive prior approval from the CBN and be installed in secure, accessible locations to serve customers efficiently.
The apex bank also emphasized a renewed focus on refund timelines for failed transactions. Under the new rule, all failed “on-us” transactions those carried out on the same bank’s ATM network—must be reversed instantly. Where automatic reversal is not possible, banks must complete the refund manually within 24 hours. For “not-on-us” transactions, which involve interbank networks, refunds must be processed within 48 hours.
In a bid to tackle fraud and enhance user safety, the CBN mandated that all ATMs must be equipped with cameras, anti-skimming devices, and encryption systems to protect customer data. However, cameras must not record keystrokes to prevent exposure of customers’ Personal Identification Numbers (PINs). Additionally, all cryptographic keys used in ATM systems must be changed annually or immediately after any suspected security breach.
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The draft also places strong emphasis on operational efficiency. ATMs are now required to maintain a maximum downtime of 72 hours, ensuring machines are consistently loaded with cash and operational. Furthermore, banks must clearly display all transaction fees at the ATM point and issue receipts for every transaction, except for balance inquiries.
In its oversight role, the CBN stated that it will conduct periodic audits to ensure compliance with the new guidelines. Financial institutions are required to submit monthly compliance reports by the fifth day of each month. Failure to meet the stipulated standards will attract regulatory sanctions, including penalties and possible withdrawal of operating licenses for persistent non-compliance.
According to the apex bank, the new framework is aimed at fostering a more resilient, secure, and user-friendly ATM environment that aligns with global best practices. By enforcing these rules, the CBN seeks to build consumer trust, reduce fraud, and enhance accessibility to electronic banking services, particularly in underserved regions.
Analysts say the updated guidelines are timely, coming at a period when Nigeria’s cashless policy and digital payment systems are expanding rapidly. With more Nigerians relying on electronic channels for financial transactions, the move is expected to strengthen the operational integrity of the country’s banking infrastructure.
The draft guidelines are currently open for stakeholder feedback before final implementation, signaling the CBN’s commitment to a more inclusive and technology-driven financial ecosystem.