The Central Bank of Nigeria (CBN) has issued a sweeping directive mandating Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours, as part of a broader effort to strengthen consumer protection and restore public confidence in the banking sector.
The directive is contained in a newly released draft document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” made public on Saturday.
Signed by Musa I. Jimoh, Director of the Payments System Policy Department, the document was circulated to banks, payment service providers, card schemes, and independent ATM operators, inviting industry feedback by October 31, 2025.
Under the proposed framework, failed “on-us” transactions—those carried out by customers using their own bank’s ATM—must be automatically reversed. In cases where technical issues prevent instant reversal, banks are required to manually refund affected customers within 24 hours.
For “not-on-us” transactions involving other banks’ ATMs, refunds must be completed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.
The new guideline also requires banks and ATM operators to deploy advanced systems that automatically reverse failed or partial transactions, eliminating the need for customers to manually file complaints. Institutions holding customer funds from failed disbursements must reconcile and return those balances immediately.
According to the apex bank, the new policy addresses persistent complaints about slow refunds, poor service quality, and growing frustration among customers. It also aims to modernise Nigeria’s payment infrastructure and align local banking practices with global standards.
The guidelines will also restructure ATM deployment and management nationwide. Banks and card issuers must now provide at least one ATM for every 5,000 active cards, with implementation targets set at 30% by 2026, 60% by 2027, and full compliance by 2028.
Any new installation, relocation, or deactivation of ATMs must receive prior approval from the CBN.
To enhance security and user experience, ATMs are required to feature anti-skimming technology, CCTV surveillance, and be installed in well-lit or enclosed areas. Machines must also comply with Payment Card Industry Data Security Standards, maintain detailed audit logs, and display functional helpdesk contact information.
At least 2% of ATMs must include tactile features to assist visually impaired users.
Furthermore, ATMs must dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees and only dispense clean banknotes. Backup power systems must also be installed to prevent downtime.
The new rules cap downtime at 72 consecutive hours, after which operators must publicly disclose the reason for the outage and provide an expected restoration timeline.
The CBN said compliance will be enforced through routine audits, physical inspections, and monthly reporting by ATM operators detailing deployments and locations. Institutions that fail to meet the new standards will face sanctions, though the circular did not specify penalties.
Explaining the rationale behind the overhaul, the apex bank noted that the move was driven by growing reports of failed transactions, cybercrime, and deteriorating service quality, adding that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”
Stakeholders have been invited to submit comments and recommendations before the final version of the guidelines is adopted, with implementation expected before the end of the year.
The post CBN orders banks to refund failed ATM transactions within 48 hours appeared first on Vanguard News.
