Raphael Kanu
The Central Bank of Nigeria (CBN) has introduced new draft guidelines mandating banks to issue instant refunds to customers for failed Automated Teller Machine (ATM) transactions.
The directive, contained in a circular signed by the Director of the Payments System Policy Department, Musa I. Jimoh, aims to strengthen consumer protection, improve transaction reliability, and restore public confidence in Nigeria’s banking system.
Dated October 9, 2025, the circular was addressed to banks, payment service providers, card schemes, and independent ATM deployers. It stipulates that on-us transactions—those carried out on a customer’s own bank’s ATM—must be reversed immediately. In cases where instant reversal is not technically possible, affected banks are required to manually resolve such issues within 24 hours.
“This framework is designed to strengthen consumer protection, reduce transactional friction, and enhance trust in the banking system,” the CBN stated.
Beyond refund timelines, the apex bank has also introduced stricter operational standards for ATM deployment and management. Under the new guidelines, banks and card issuers must deploy at least one ATM for every 5,000 cards issued. Compliance will be phased, with 30 percent expected by 2026, 60 percent by 2027, and full implementation by 2028.
In addition, financial institutions must now obtain prior approval from the CBN for any ATM deployment, redeployment, or decommissioning. The apex bank said it will enforce compliance through periodic audits, on-site inspections, and monthly operational reports from financial institutions.
Stakeholders have until October 31, 2025, to submit feedback and recommendations before the new policy is finalised.
The development follows the CBN’s earlier decision in February 2025 to end the policy granting customers three free monthly interbank ATM withdrawals. Analysts see the new refund policy as part of broader efforts to modernise Nigeria’s payments infrastructure and enhance the credibility of electronic transactions.
If fully implemented, the policy is expected to boost public confidence in the banking system and reduce the recurring complaints from customers about delays in refunding failed transactions.