A New Era for ATM Operations — CBN’s Draft Guidelines Signal Reform, But Must Deliver
A New Era for ATM Operations — CBN’s Draft Guidelines Signal Reform, But Must Deliver
Today marks a pivotal moment in Nigeria’s financial infrastructure as the Central Bank of Nigeria (CBN) unveiled its draft guidelines on Automated Teller Machine (ATM) operations, set to supersede earlier regulations. For many Nigerians who have endured broken machines, delayed reversals, and opaque processes, these new rules offer promise but their success will hinge on rigorous implementation rather than regulatory rhetoric.
It aim to tighten standards, enhance consumer protection, and enforce greater accountability on banks and ATM operators.
Faster refunds for failed transactions “on-us” transactions (using your own bank’s ATM) must be reversed instantly, or within 24 hours if technical challenges intervene; “not-on-us” (using another bank’s ATM) must be settled within 48 hours.
An ATM must not remain offline for more than 72 consecutive hours. If extended downtime is unavoidable, customers should be duly informed.
Deployment targets for every 5,000 issued cards, a bank must own one ATM. The roll-out is staged: 30 % compliance by 2026, 60 % by 2027, and full coverage by 2028.
Inclusivity measures : 2 % of all ATMs deployed must include tactile graphic symbols to assist visually impaired users.
Ban on stand-alone ATMs without permit ATMs outside counted bank premises (malls, shopping centers, churches, etc.) must be under independent deployers (IADs) and partner with banks to ensure compliance.
Stronger security features mandatory anti-skimming devices, hidden cameras (excluding keystroke recording), safe physical placement, and structural protection.
Operational standards and cash sufficiency machines should always hold sufficient cash (unless under maintenance), with frequent servicing and replacement of unfit notes.
Compliance and penalties the CBN will conduct audits, on-site inspections, and enforce penalties for non-compliance.
These measures replace the ATM provisions embedded in the 2020 Guidelines for the Operations of Electronic Payment Channels, aiming for a more comprehensive, modernized regulatory framework.
Support is already swelling. The Bank Customers Association of Nigeria (BCAN) has endorsed the stricter refund timelines and tighter downtime limits, even calling for an ideal 24-hour cap on all refunds. Meanwhile, the Federal Competition & Consumer Protection Commission (FCCPC) has thrown its support behind the 48-hour reversal deadline for failed “not-on-us” transactions.
For everyday Nigerians, the new draft is more than bureaucratic revision it touches the pain points of using ATMs in Nigeria:
Transaction failures have long been a source of frustration. Funds debited without dispensing cash, or cards being swallowed, often lead to days or weeks of painstaking follow-up. The promise of near-immediate refunds can restore trust in electronic banking.
Chronic ATM downtime has been endemic many neighborhoods suffer long stretches with nonfunctional machines. Enforcing maximum 72-hour outages compels banks to adopt better maintenance protocols.
The targeted deployment (1 ATM per 5,000 cards) pushes banks to scale infrastructure toward underserved areas, narrowing the urban–rural gap in ATM coverage.
Inclusion for persons with disabilities the tactile-symbol mandate is a welcome step toward ensuring that the visually impaired are not left behind in a cash-centric society. The anti-skimming and camera provisions respond to rising fraud. If implemented strictly, they can reduce skimming, card cloning, and other ATM-linked attacks.The CBN’s threats of audits and penalties, if meaningful, change the culture: non-compliance could carry reputational or financial consequences.
Risks, Caveats, and What Must Be Done
These guidelines remain proposals. Their strength depends on public feedback, political resolve, and institutional capacity at the CBN and in banks alike. The window for inputs reportedly closes by October 31, 2025.
Some banks, especially smaller ones with limited branch networks or thin capital, may struggle to deploy new ATMs or maintain them. The costs of frequent servicing, backups, cash logistics, and security enhancements will not be trivial.
Many earlier CBN guidelines (on POS agents, bank charges, charges on electronic transfers) have struggled with lax enforcement. If the CBN treats these ATM rules as advisory, the status quo may persist.
Consumers must know their rights. what timelines apply, how to lodge complaints, and where to escalate. A well-publicized helpline or portal is essential.
Equity in implementation. Urban areas may benefit more quickly, while remote and low-traffic regions risk being overlooked. The CBN must enforce compliance uniformly, avoiding a two-tier ATM system.
The CBN’s draft ATM guidelines represent one of the boldest attempts yet to reshape Nigeria’s cash distribution and banking interface. It aligns with global norms, responds to consumer grievances, and seeks to drive inclusive, reliable access. But intent is insufficient. The real test lies in execution. The CBN must show resolve by enforcing, monitoring, sanctioning, and supporting weaker banks. Only then can these rules transform Nigeria’s ATM ecosystem from frustration points into reliable conduits for financial inclusion.
If done right, this could mark the turning point in everyday trust in Nigeria’s banking infrastructure. Let us hope the banks and regulators rise to the challenge.
