The Central Bank of Nigeria (CBN) is set to transform the management and operation of Automated Teller Machines (ATMs) across the country through newly updated, detailed regulations. These directives are outlined in the recently published “Draft Guidelines on the Operations of Automated Teller Machines in Nigeria” issued by the nation’s apex financial authority.
This fresh set of rules serves as an updated version of the 2020 “Guidelines for the Operations of Electronic Payment Channels in Nigeria.” It aims to establish baseline criteria for the deployment, upkeep, and functioning of ATMs, enhancing user security and aligning Nigeria’s ATM services with international standards.
These initiatives form part of the CBN’s broader strategy to foster transparency, accountability, and responsible conduct within the financial sector. This ongoing regulatory refinement follows the recent introduction of revised protocols governing Point-of-Sale (PoS) banking agents.
The CBN emphasizes that these guidelines are designed to strengthen the nation’s payment infrastructure. Among the notable provisions are a daily transaction limit of N1.2 million for PoS operators and the requirement for agents to register with only one financial institution.
Below, we highlight ten essential rules from the draft guidelines that every stakeholder should be aware of.
Note: The following points are presented without ranking their significance.
Also See: CBN’s updated rules: PoS agents now restricted to a single terminal.
| Description | Guideline | Objective |
|---|---|---|
| 1. Accessibility for All | At least 2% of all ATMs deployed by each operator must feature tactile graphic symbols to assist visually impaired users. | This provision ensures that individuals with visual impairments can independently conduct transactions using tactile cues such as braille or raised symbols, promoting inclusivity in financial services. |
| 2. Universal Card Compatibility | All ATMs must support multiple card types, including Visa, Mastercard, Verve, and cards issued by fintech firms and other authorized payment providers. | This measure aims to minimize card rejection rates and transaction failures by enabling seamless use of diverse payment cards across all ATMs. |
| 3. ATM-to-Card Ratio | Banks are required to maintain a ratio of one ATM per 5,000 issued debit cards. For example, a bank with 100,000 cards must operate at least 20 ATMs. This target is to be met progressively over three years: 30% by 2026, 60% by 2027, and full compliance by 2028. | Increasing the number of ATMs will enhance customer access to cash withdrawal services and reduce overdependence on PoS terminals. |
| 4. Limiting ATM Downtime | ATM outages caused by technical faults must not exceed 72 continuous hours. Banks are also required to notify customers if repairs will take longer. | This rule is intended to improve ATM availability and reliability, ensuring customers have consistent access to services. |
| 5. Disabling Cash Retraction | ATMs must have the cash retraction feature disabled. In cases where cash is dispensed but the transaction cannot be completed (e.g., card not returned), the machine will not reclaim the cash, and customers must contact their bank for resolution. | This reduces errors related to cash dispensing and protects customers from potential losses. |
| 6. Ensuring Cash Availability | Every operational ATM must be stocked with cash at all times, except when undergoing maintenance. | This prevents situations where multiple ATMs are out of service or lack cash, improving customer convenience. |
| 7. Prompt Resolution of Failed Transactions | Failed “on-us” ATM transactions (using a card on the issuing bank’s ATM) must be resolved immediately, while “not-on-us” failures (using a card on another bank’s ATM) should be addressed within 48 hours. | Swift resolution of transaction issues enhances customer trust and satisfaction. |
| 8. Regulation of Stand-Alone ATMs | ATMs located outside bank premises-such as in shopping centers, offices, or places of worship-are prohibited unless operated by an Independent ATM Deployer (IAD) authorized by the CBN. IADs must partner with banks for cash replenishment and regulatory compliance. | This ensures user safety and proper maintenance of ATMs outside traditional bank locations. |
| 9. Anti-Fraud Measures | All ATMs must be equipped with anti-skimming devices to detect and prevent fraudulent card usage. Additionally, ATMs should be installed inside bank buildings or securely anchored and enclosed if placed outdoors. | These precautions aim to safeguard customers against card fraud and theft. |
| 10. Enforcement and Penalties | The CBN will conduct regular audits and on-site inspections to monitor adherence to these guidelines. Non-compliant banks or ATM operators will face sanctions. | This framework ensures accountability and encourages strict compliance with the new standards. |
CBN’s Call for Feedback
The draft guidelines have been circulated among banks, financial institutions, payment service providers, and the general public. The CBN invites all stakeholders to submit their comments and suggestions by October 31, 2025.
Feedback should be directed to Musa Jimoh, Director of the Payment System Policy Department at the CBN, via email at [email protected].
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