In a major move to protect consumers, the Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The directive is part of the new “Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” which aims to modernize the payment system and address rising customer complaints over delayed refunds and poor service.
New Refund Timelines
The CBN has set strict timelines for financial institutions to process refunds:
- ‘On-Us’ Transactions (Using your own bank’s ATM): Failed transactions must be reversed instantly. If instant reversal fails, banks must process the refund manually within 24 hours.
- ‘Not-On-Us’ Transactions (Using another bank’s ATM): Refunds must be processed within 48 hours.
The CBN stressed that customers should not suffer due to system errors and directed operators to deploy technology capable of automatically reversing failed transactions, eliminating the need for customers to file complaints.
Sweeping ATM Operational Reforms
The draft guidelines introduce several key reforms to improve infrastructure, service, and security:
- ATM-to-Card Ratio: Banks must deploy at least one ATM for every 5,000 active cards. Institutions must achieve full compliance by 2028.
- Security & Accessibility: All ATMs must be installed in well-lit areas, equipped with CCTV cameras and anti-skimming devices, and feature tactile symbols on at least
of machines for visually impaired users.
- Transaction Standards: ATMs must dispense cash before returning cards, allow free PIN changes, and dispense only clean banknotes.
- Uptime and Penalties: ATM downtime is capped at 72 consecutive hours. Operators must publicly disclose the cause and estimated restoration time for any service disruption exceeding this limit.
The CBN will enforce these new rules through regular audits and inspections, with sanctions awaiting non-compliant institutions. Stakeholders have until October 31, 2025, to provide feedback on the draft before the final guidelines are issued.
