The Central Bank of Nigeria (CBN) has issued a new directive mandating all banks to process refunds for failed ATM transactions within 48 hours, in a move aimed at protecting customers and improving confidence in the nation’s financial system.
According to the circular, for “not-on-us” transactions — those involving ATMs of other banks — refunds must also be completed within the same 48-hour timeframe.
The apex bank emphasized that customers should no longer bear the burden of system errors or network failures, stating that financial institutions must deploy technologies that automatically reverse failed or partial transactions without requiring customers to lodge complaints.
Institutions holding funds resulting from failed disbursements are also required to reconcile and return balances immediately, ensuring full transparency and consumer protection.
The CBN noted that the decision follows growing public frustration over delayed reversals, poor service delivery, and system inefficiencies, and forms part of ongoing reforms to modernise Nigeria’s payment infrastructure in line with international best practices.
In addition to the refund directive, the CBN unveiled new ATM operational standards across the country. Banks and card issuers must now deploy one ATM for every 5,000 active cards, achieving 30% compliance by 2026, 60% by 2027, and full compliance by 2028. Any installation, relocation, or removal of ATMs will henceforth require prior approval from the apex bank.
For security and accessibility, all ATMs must be fitted with anti-skimming devices, CCTV cameras, tactile symbols for visually impaired users, and placed in enclosed or well-lit locations. Machines are also expected to dispense cash before returning cards, display clear transaction fees, issue receipts, and maintain audit logs in line with global data security standards.
To minimise downtime, the CBN ordered that no ATM should remain non-functional for more than 72 consecutive hours, and operators must promptly inform the public about service disruptions and restoration timelines.
Highlighting the significance of the reforms, the CBN stated:
“The goal is to build a payments system that works seamlessly for everyone — urban and rural users alike.”
With over 200 million cardholders and increasing dependence on digital banking, the new policy is expected to enhance service reliability, reduce fraud, and hold banks accountable for customer satisfaction. Stakeholders have been invited to submit feedback ahead of the final adoption of the policy, expected before the end of the year.
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