*Targets one ATM for every 5,000 cards
The Central Bank of Nigeria (CBN) has issued fresh directives to commercial banks and financial institutions to expand their Automated Teller Machine (ATM) networks nationwide, as part of a new policy aimed at improving cash access, service efficiency, and consumer protection.
In a communique titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria”, the apex bank announced new minimum standards for the deployment, operation, maintenance, and security of ATMs across the country.
The new guidelines, which supersede previous regulations, are designed to enhance financial inclusion and strengthen security around electronic payment channels.
Under the new rules, all card-issuing banks are required to deploy at least one ATM for every 5,000 payment cards issued. The implementation will be phased, with institutions expected to achieve 30% of the target by 2026, 60% by 2027, and full compliance by 2028.
According to the CBN, all ATM installations must be sited in safe and secure locations to guarantee user protection and transaction confidentiality. ATMs positioned outside buildings must be bolted to the floor, while all deployments, redeployments, and decommissioning will require prior written approval from the apex bank.
Independent ATM Deployers (IADs) are also mandated to obtain CBN approval before operation and must show evidence of partnership with a licenced bank for cash provisioning and maintenance.
The guidelines also introduced stricter measures on failed transactions. For “on-us” transactions — where customers use their own bank’s ATM — failed transactions must be reversed instantly or within 24 hours in the event of technical difficulties. For “not-on-us” transactions — where customers use another bank’s ATM — refunds must be completed within 48 hours.
The CBN further directed that ATM operators must adopt systems capable of automatically initiating refunds for non-dispense errors without prompting from the customer or the issuing bank.
To improve security, all ATMs must be equipped with functional cameras to record activities around the machines without capturing customers’ keystrokes. In addition, machines must be fitted with anti-skimming devices and comply with the Payment Card Industry Data Security Standard (PCI DSS). The apex bank also mandated that ATM encryption keys be changed annually, while customers should be allowed to change their PINs free of charge.
On operations and maintenance, the new policy stipulates that ATM downtime should not exceed 72 consecutive hours. Banks are required to ensure constant cash availability and display helpdesk contacts, charges, and fees clearly. Receipts must also be issued for all transactions except balance inquiries.
The CBN said it will carry out periodic audits and onsite checks to monitor compliance with the new rules. Financial institutions are required to render monthly reports of all ATM deployments to the CBN by the fifth day of the following month.
The apex bank warned that appropriate penalties will be imposed on any institution that fails to comply with the new standards. It stated that the guidelines aim to strengthen ATM security, improve service delivery, and expand access to banking services for Nigerians.