CBN Releases New Draft Guidelines for ATM Operations, Targets Improved Access, Security, and Consumer Protection

The Central Bank of Nigeria (CBN) has unveiled new draft guidelines for Automated Teller Machine (ATM) operations, introducing far-reaching reforms aimed at improving accessibility, strengthening security, and ensuring better consumer protection across the nation’s banking sector.

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According to the apex bank, the new draft document supersedes all previous regulations on ATM deployment and management. It introduces stricter standards for financial institutions, electronic payment service providers, and independent ATM operators, as part of ongoing efforts to modernize Nigeria’s digital payment ecosystem.

Under the new framework, card issuers are mandated to deploy one ATM for every 5,000 issued cards by 2028, ensuring greater access for millions of customers nationwide. To achieve this, financial institutions are expected to meet at least 30 percent of the deployment target by 2026, with gradual scaling over the next two years.

The CBN emphasized that all ATM installations must receive prior approval from the bank and adhere to strict location and security standards. The devices are required to be installed in secure, well-lit environments and must be accessible to users, including persons with disabilities.

“This policy is designed to close the accessibility gap and reduce the long queues that continue to frustrate customers across many parts of the country,” a CBN official familiar with the draft said. “By setting measurable targets, the Bank aims to ensure that Nigerians have reliable and secure access to cash withdrawal and electronic payment facilities.”

Instant Refunds for Failed Transactions

In one of the most consumer-friendly provisions, the CBN has directed banks to implement instant reversal for failed “on-us” transactions—that is, transactions carried out on ATMs owned by the customer’s own bank. If such reversals cannot be automated, the refund must be completed within 24 hours.

For “not-on-us” transactions—where a customer uses another bank’s ATM—the refund window has been capped at 48 hours. This measure, according to the CBN, is intended to eliminate delays and customer complaints that have plagued the system for years.

The apex bank warned that failure to adhere to the refund timelines would attract sanctions and could impact a bank’s operational rating.

Enhanced Security and Data Protection

Security remains a major focus of the new draft guidelines. All ATMs are now required to have functional surveillance cameras positioned to capture card insertion and cash dispensing activities—but without recording keystrokes to protect users’ PIN confidentiality.

Each machine must also be equipped with anti-skimming devices to prevent card data theft, while financial institutions are required to change encryption keys at least once every 12 months.

Additionally, all operators must comply with Payment Card Industry Data Security Standards (PCI DSS) and other cybersecurity frameworks endorsed by the CBN. The guidelines further mandate continuous monitoring of ATM networks to detect and prevent unauthorized access or tampering.

“The Bank’s renewed emphasis on cybersecurity underscores its commitment to protecting the integrity of Nigeria’s financial infrastructure,” said a fintech analyst in Lagos. “With fraudsters becoming more sophisticated, the CBN’s proactive approach will help minimize risks for both banks and customers.”

Operational Standards and Customer Experience

To ensure improved service delivery, the CBN has limited ATM downtime to a maximum of 72 hours for any single machine. Financial institutions are expected to guarantee constant cash availability and maintain their machines in optimal working condition.

The new rules also require ATMs to display all applicable transaction fees clearly before customers proceed, ensuring full transparency. Receipts must be issued for all completed transactions—except for balance inquiries—to help customers reconcile their accounts and resolve disputes easily.

Compliance, Reporting, and Sanctions

The Central Bank will conduct periodic audits of all financial institutions and independent operators to assess compliance with the new standards. Banks and service providers are to submit monthly reports detailing ATM performance, transaction volumes, and incidents of downtime by the 5th of every month.

Institutions found in breach of the provisions will face penalties ranging from monetary fines to suspension of operations or license withdrawal in severe cases.

“This is not just another circular—it’s a comprehensive roadmap for reform,” a senior banking source told reporters. “The CBN is sending a strong message that customer experience, data integrity, and financial inclusion are top priorities.”

A Push for Greater Inclusion

Beyond the technical and operational upgrades, the guidelines reflect the CBN’s broader goal of expanding financial inclusion, particularly in underserved and rural communities where ATM presence remains limited.

By enforcing minimum deployment ratios and performance standards, the apex bank hopes to improve Nigerians’ trust in digital payment systems, while reducing dependency on cash transactions.

The CBN has invited stakeholders and members of the public to review the draft guidelines and submit feedback before final adoption.

The new framework, once approved, is expected to take full effect in 2026, marking a major milestone in Nigeria’s transition toward a more secure, transparent, and accessible banking system.