The Central Bank of Nigeria (CBN) has directed commercial banks and financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. The move seeks to strengthen consumer protection and restore confidence in the country’s financial system.
The directive is contained in a new draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released on Saturday by Musa I. Jimoh, Director of the Payments System Policy Department.
The CBN stated that failed transactions occurring on a customer’s own bank ATM must be reversed immediately. Where instant reversal is not possible, the refund must be completed within 24 hours. For transactions involving other banks’ ATMs, refunds must be made within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular emphasized.
To improve efficiency, the apex bank directed all Deposit Money Banks and ATM operators to adopt automated systems that instantly reverse failed or partial transactions, eliminating the need for customers to file complaints.
Institutions holding unreturned funds from failed transactions are required to reconcile and refund affected customers immediately.
The CBN added that the new measures address growing concerns about delayed refunds, poor service, and network issues that have frustrated millions of users.
The draft also mandates banks and card issuers to install at least one ATM per 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. All new ATM deployments, relocations, or removals must receive prior approval from the CBN.
For safety, ATMs must include CCTV, anti-skimming devices, backup power, and comply with Payment Card Industry Data Security Standards. Machines are also required to dispense clean notes, display clear fees, issue receipts, and serve visually impaired users with tactile symbols.
The CBN said it will monitor compliance through inspections and monthly reports. Defaulters will face sanctions.
The apex bank described the reform as part of its broader effort to modernize Nigeria’s payment systems and ensure reliability across urban and rural areas.
