The Central Bank of Nigeria (CBN) has issued new minimum standards for the deployment, operation, maintenance, and security of Automated Teller Machines (ATMs) across the country.
The new policy, contained in a communique titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” supersedes all previous ATM regulations.
According to the CBN, the revised guidelines are aimed at improving access, ensuring service reliability, and strengthening consumer protection in ATM operations nationwide.
Under the new rules, all card issuers are required to deploy at least one ATM for every 5,000 payment cards issued, with full compliance expected by 2028. Deployment must reach 30 percent by 2026, and all installations must guarantee user safety, transaction confidentiality, and structural security.
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The CBN also mandated that all ATM deployments, redeployments, or decommissioning obtain prior written approval from the Bank. Independent ATM Deployers (IADs) must secure CBN authorization and show proof of partnership with a licensed bank for cash provisioning.
On transaction management, the apex bank directed that failed “on-us” transactions (conducted on a customer’s own bank’s ATM) must be reversed instantly, or within 24 hours if technical issues occur. For “not-on-us” transactions (conducted on another bank’s ATM), refunds must be completed within 48 hours.
The CBN further directed that ATM acquirers must implement automatic refund mechanisms for non-dispense errors, eliminating the need for customers to lodge complaints.
In terms of security, all ATMs are now required to have surveillance cameras, anti-skimming devices, and tested secure networks. ATMs must also comply with Payment Card Industry Data Security Standards (PCI DSS), while encryption keys are to be changed annually. Customers can change their PINs free of charge.
To ensure service reliability, ATMs must not experience more than 72 consecutive hours of downtime, and cash must be available at all times. Banks remain fully responsible for cash provisioning, even when partnering with non-bank operators.
The CBN will also conduct periodic audits and onsite checks to ensure compliance, while all operators are required to submit monthly reports on new deployments by the 5th of every month. Institutions that fail to comply will face penalties.
The apex bank said the new framework aims to improve ATM access density, strengthen security protocols, and enhance consumer confidence in electronic banking.
