October 13, (THEWILL) — The Central Bank of Nigeria (CBN) has released new draft guidelines mandating instant refunds for failed Automated Teller Machine (ATM) transactions.
A circular signed by the Director of Payments System Policy Department, Musa I. Jimoh, said the move is aimed at strengthening consumer protection, improving transaction reliability, and restoring public confidence in the country’s banking system.
Dated October 9, 2025, and addressed to banks, payment service providers, card schemes, and independent ATM deployers, the proposed framework stipulates that on-us transactions, those carried out on a customer’s own bank’s ATM, must be reversed instantly. Where instant reversal is not technically possible, the bank must manually resolve the issue within 24 hours.
“This framework is designed to strengthen consumer protection, reduce transactional friction, and enhance trust in the banking system,” the circular stated.
Beyond refund timelines, the draft guidelines introduce stricter operational standards for ATM deployment and management.
Under the new rules, banks and card issuers are required to deploy at least one ATM for every 5,000 cards issued, with phased compliance targets — 30 percent by 2026, 60 percent by 2027, and full compliance by 2028.
The apex bank will also require prior approval for any ATM deployment, redeployment, or decommissioning. Regular audits, on-site inspections, and mandatory monthly reports will be used to track compliance.
Stakeholders have until October 31, 2025, to submit their feedback before the guidelines are finalised.
The development comes months after the CBN scrapped the three free monthly interbank ATM withdrawals in February 2025, a move seen as part of broader reforms to strengthen Nigeria’s payments infrastructure.
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