By Muhammad Mamman
The Central Bank of Nigeria (CBN) has issued new draft guidelines for Automated Teller Machine (ATM) operations, replacing all previous regulations, in a move aimed at improving cash access, strengthening security, and protecting consumers across the country.
Under the new proposals, banks and other card issuers will be required to deploy at least one ATM for every 5,000 cards issued by 2028, with an initial target of 30 per cent deployment by 2026. Each ATM installation must receive prior approval from the CBN and be located in secure, well-lit areas accessible to the public.
The guidelines also introduce stricter refund timelines for failed transactions. Customers will now receive instant reversals for failed “on-us” transactions—those carried out on the same bank’s network. Where manual intervention is required, refunds must be processed within 24 hours, while “not-on-us” transactions—those involving different banks—must be reversed within 48 hours.
In terms of security, the new framework mandates that all ATMs be fitted with surveillance cameras (excluding any recording of keystrokes), anti-skimming devices, and undergo annual cryptographic key changes. Financial institutions are also expected to comply fully with the Payment Card Industry Data Security Standard (PCI DSS).
Operational standards have been tightened as well. Machines must not be out of service for more than 72 consecutive hours, must always be stocked with cash, and display all applicable fees clearly. Receipts must be issued for every transaction, except for simple balance enquiries.
The CBN will conduct regular audits to ensure compliance, with institutions required to submit monthly operational reports by the 5th of each month. Penalties will apply to operators who fail to meet the new standards.
According to the CBN, these measures are part of ongoing efforts to enhance ATM availability, improve customer experience, and strengthen the security of electronic banking channels across Nigeria’s financial system.
