The Central Bank of Nigeria (CBN) has unveiled comprehensive new guidelines aimed at revamping the country’s declining Automated Teller Machine (ATM) operations.
The new framework, which seeks to improve efficiency, security, and user experience, comes amid widespread public complaints about frequent cash shortages, malfunctioning terminals, and rising transaction failures.
In a circular signed dated October 9,2025 and by the Director, Payment System Policy Department, Musa I. Jimoh, the apex bank noted that the guidelines are designed to restore public confidence in the ATM network, which remains a critical component of Nigeria’s cashless economy.
The CBN also called on stakeholders, including banks, card issuers, and payment processors, to review and provide feedback on the draft document before final adoption.
Under the new rules, all ATM deployers must establish effective monitoring mechanisms to track and identify the causes of transaction failures. Institutions operating ATMs are required to render monthly returns, including details of new deployments, locations, and addresses, to the CBN’s Payment System Supervision Department by the 5th of every month.
The guidelines set out stringent technology and operational standards. All ATM systems must comply with the Payment Card Industry Data Security Standards (PCI DSS) and include audit trail capabilities to facilitate investigations and dispute resolution.
At least two percent of ATMs deployed by each acquirer must be fitted with tactile symbols for visually impaired customers, and their locations must be published online.
To promote inclusivity and ensure domestic control, the CBN emphasized that all ATM transactions must be processed and settled within Nigeria, with all collaterals denominated in naira. The apex bank also prohibited stand-alone or closed ATM networks and mandated that ATMs be sited in safe, well-lit locations accessible to the public.
The CBN further directed that ATM downtime must not exceed 72 consecutive hours, with operators required to display functional helpdesk contacts and ensure prompt customer communication. Cash availability must be guaranteed at all times, with ATMs stocked only with fit notes.
On security, the bank mandated that all ATMs be fitted with cameras covering all user activities, excluding keystrokes, and installed with anti-skimming devices to prevent fraud. Regular maintenance, insurance coverage, and annual key changes are also required.
In a move to protect consumers, the CBN ordered instant reversals for failed ‘on-us’ transactions and a 48-hour limit for ‘not-on-us’ refunds. The apex bank also pledged to conduct periodic audits and on-site inspections to ensure compliance.
Financial analysts say the CBN’s intervention could restore reliability to Nigeria’s ATM network, which has suffered years of decline due to poor maintenance, security lapses, and infrastructural challenges. If fully enforced, the new rules are expected to enhance customer confidence and strengthen Nigeria’s electronic payment ecosystem.