Central Bank of Nigeria (CBN) has issued new guidelines mandating banks to instantly reverse failed automated teller machine (ATM) transactions, aiming to enhance consumer protection and strengthen reliability across the country’s payment infrastructure.
Under the updated Guidelines on the Operations of Automated Teller Machines in Nigeria, failed “on-us” transactions—where customers use ATMs of their own banks—must be reversed immediately. If instant reversal fails due to technical issues, banks are required to complete manual reversals within 24 hours. For “not-on-us” transactions, using another bank’s ATM, refunds must be completed within 48 hours. Automated reversals should take less than five minutes for on-us transactions and less than 15 minutes for not-on-us transactions.
The guidelines also require fallback measures for biometric errors, non-biometric verification where safe, and detailed logging of such incidents.
CBN introduced new ATM deployment requirements, mandating that all card issuers provide at least one ATM for every 7,500 cards issued, to be implemented gradually over three years: 30% by 2026, 60% by 2027, and full compliance by 2028. Machines must be strategically located in urban and rural areas, with deployment, relocation, or decommissioning requiring prior written approval from the regulator.
Operational and service standards were also detailed. ATM downtime due to technical faults must not exceed 72 consecutive hours, and customers must be notified when downtime surpasses this threshold. Biometric ATMs must meet a minimum authentication success rate of 98%, transaction approval times under 1.2 seconds at the 95th percentile, and system uptime of 99.5% excluding scheduled maintenance.
Other provisions include:
Full disclosure of charges and fees
Clear and functional helpdesk contacts at terminals
Receipts for all transactions upon request, with legible display of amount, terminal ID, date, and time
Regular cash replenishment and prohibition of dispensing unfit banknotes
Free PIN change functionality for customers
Monitoring and reporting of suspicious transactions
Backup power systems and receipt disposal facilities
According to the CBN, the revised framework is part of a broader effort to strengthen ATM service reliability, enhance fraud monitoring, and ensure stronger consumer protection as digital finance grows across Nigeria.
