New guidelines aim to improve access to cash, strengthen payment infrastructure and tighten security across Nigeria’s ATM network…..
The Central Bank of Nigeria (CBN) has directed banks and other card issuers to significantly expand the deployment of Automated Teller Machines (ATMs) nationwide, introducing a new benchmark of one ATM for every 7,500 payment cards issued by 2028.
The directive forms part of the Guidelines on the Operations of Automated Teller Machines in Nigeria, released by the apex bank to improve access to cash services and strengthen the country’s payment infrastructure.
According to the circular dated March 13, 2026, the guidelines were signed by Musa I. Jimoh, Director of the Payments System Policy Department, and addressed to banks, financial institutions and payment service providers.
Under the new framework, all card issuers are required to meet the minimum ATM deployment ratio in phases over the next three years.
Phased compliance timeline
The CBN stated that financial institutions will be expected to comply gradually with the new requirement:
- 30% compliance by 2026
- 60% compliance by 2027
- Full compliance by 2028
According to the regulator, the updated rules are intended to strengthen ATM deployment standards while improving access to cash services for customers across the country.
The bank said the policy review was necessary due to rapid changes in the payment ecosystem, including the rise of digital financial services, growing cybersecurity threats and increased demand for financial inclusion.
The new framework replaces the earlier provisions on ATM operations contained in the 2020 Guidelines on the Operations of Electronic Payment Channels in Nigeria.
Domestic processing requirement
Beyond expanding ATM availability, the CBN also introduced stricter rules governing ATM transaction processing and system interoperability.
Under the guidelines, all ATM transactions carried out within Nigeria must be processed by an acquirer-processor operating within the country.
The apex bank also prohibited payment schemes from forcing Nigerian banks or ATM operators to route domestic transactions outside the country for authorisation or processing.
“No card or payment scheme shall compel any issuer or acquirer to send any transaction outside the country for processing, authorization or switching,” the circular stated.
In addition, all ATM transactions involving Nigerian-issued cards must be settled through a domestic settlement arrangement operated by a Nigerian company, with collateral denominated in naira and maintained within the country.
Interoperability and deployment rules
The CBN also barred the deployment of stand-alone or closed ATM networks, insisting that all machines must be interoperable.
Under the guidelines:
- ATMs must accept all cards issued in Nigeria by authorised issuers
- Machines must be installed in safe and easily accessible locations
- Institutions seeking to operate as independent ATM deployers must obtain prior written approval from the CBN
Applicants are required to submit corporate information, demonstrate operational capacity and provide proof of partnership with banks responsible for supplying cash to the machines.
New performance and security standards
To improve reliability and consumer protection, the CBN introduced new operational standards for ATM operators.
The regulator directed that ATM downtime caused by technical faults must not exceed 72 consecutive hours, except where customers are properly notified.
Operators are also required to ensure machines maintain adequate vault cash levels and must not stock ATMs with damaged or unfit banknotes.
Other requirements include:
- Display of helpdesk contact information on ATM screens
- Disclosure of applicable transaction charges to customers
- Issuance of receipts when requested, showing details such as transaction amount, terminal ID, date and time
To combat fraud, ATM deployers must install anti-skimming devices, surveillance cameras and secure transaction networks designed to protect customer data.
However, the CBN clarified that surveillance cameras must not capture customers’ keystrokes during transactions.
The guidelines also require ATM encryption keys to be changed at least once every year, while suspicious transactions detected through ATM systems must be reported to the central bank.
Faster refunds for failed transactions
The framework also introduces stricter timelines for resolving failed ATM transactions.
According to the guidelines:
- Failed on-us ATM transactions must be reversed instantly
- Manual reversals due to technical issues must be completed within 24 hours
- Not-on-us transactions involving another bank’s ATM must be resolved within 48 hours
Operators are also required to deploy automated systems that trigger refunds immediately without waiting for customers to lodge complaints.
Customers must be able to report dispense errors through digital channels such as web portals or mobile apps, eliminating the need to visit bank branches.
Compliance monitoring
The CBN said it will conduct periodic audits and on-site inspections to ensure compliance with the new rules.
Institutions operating ATM networks will also be required to submit monthly reports detailing new ATM deployments and their locations to the Payments System Supervision Department by the fifth day of the following month.
The apex bank warned that appropriate regulatory penalties will be imposed on institutions that fail to comply with the provisions of the new guidelines.
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