The Central Bank of Nigeria (CBN) has released a new set of rules to guide how Automated Teller Machines (ATMs) are deployed, operated, and maintained across the country.
The new policy, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” was shared on Thursday, October 22, 2025, through a post by the National Orientation Agency (NOA) on its official X (formerly Twitter) page.
According to the CBN, these new guidelines will replace all previous ATM regulations and are designed to make cash withdrawals safer, faster, and more reliable for customers.
- More ATMs Across Nigeria
The CBN now requires every bank that issues payment cards to deploy at least one ATM for every 5,000 cards in circulation.
- Banks have three years (until 2028) to meet this target — achieving 30% by 2026.
- ATMs must be installed in safe and secure locations and should not be placed outside unless they are firmly fixed to the floor.
- Before installing, moving, or removing any ATM, banks must get written approval from the CBN.
- Independent ATM Deployers (IADs) — private companies that manage ATMs — must also get CBN approval and partner with a bank for cash supply.
- Faster Refunds for Failed Transactions
The new policy also focuses on protecting customers when ATM transactions fail.
- If a customer uses their own bank’s ATM (On-Us Transaction) and the transaction fails, the refund must be made instantly.
- If that fails due to technical issues, the refund must be completed within 24 hours.
- For other bank ATMs (Not-On-Us Transactions), refunds must be processed within 48 hours.
- Banks must also create systems that automatically refund customers when cash isn’t dispensed, even if the customer doesn’t complain.
- Stronger Security and Better Technology
To tackle ATM fraud and ensure privacy:
- All ATMs must have security cameras to record people and activities but must not record PINs or keystrokes.
- Machines must have anti-skimming devices to stop card-cloning fraud.
- ATM encryption keys must be changed every year and not reused for different machines.
- Customers must be able to change their PINs for free.
- All ATM operators must comply with global data protection standards (PCI DSS).
- Proper Maintenance and Transparency
- An ATM must not be out of service for more than 72 consecutive hours.
- Banks must ensure that cash is always available in their ATMs.
- Helpdesk contact details, charges, and fees must be clearly displayed on every machine.
- Receipts must be printed for all transactions (except balance inquiries).
- Monitoring and Penalties
The CBN will regularly inspect ATMs across the country to ensure compliance.
- Banks and other institutions must submit a monthly report on their ATM operations by the 5th of every new month.
- Those who fail to meet the new standards will face penalties. Why These New Rules Matter
According to the CBN, these guidelines aim to:
- Improve the availability and quality of ATM services across Nigeria.
- Make it easier for people to access cash safely and conveniently.
- Strengthen security around electronic transactions.
- Protect customers from fraud and unnecessary delays in refunds.
These new measures mark a significant step by the Central Bank to improve Nigeria’s electronic banking system and build public trust in automated financial services.
If banks and ATM operators fully comply, customers can expect fewer failed transactions, faster refunds, and safer cash withdrawals in the coming years.
