In a sweeping overhaul of automated teller machine (ATM) rules aimed at transforming Nigeria’s cash access landscape, the Central Bank of Nigeria (CBN) has unveiled bold new minimum standards for the deployment, operation, maintenance, and security of ATM services nationwide.
The new regulation, contained in a circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria”, replaces previous ATM regulatory frameworks and sets out ambitious targets for banks and card issuers.
At the heart of the directive is a density requirement that all card‑issuing institutions including banks and authorised non‑bank payment service providers, must deploy at least one ATM for every 5,000 payment cards issued. This target is to be achieved progressively over three years, with an initial 30% compliance in 2026, a 60% target in 2027, and full compliance by 2028.
The CBN said this move is designed to improve the availability of cash withdrawal points for customers, reduce over‑reliance on alternative channels such as point‑of‑sale (PoS) agents, and ensure equitable access to ATM services in both urban and rural areas.
Beyond numerical targets, the guidelines mandate stricter security and customer‑safety provisions. All ATM locations must be secure, well‑lit, and designed to protect user privacy. Stand‑alone machines outside secure premises must be bolted to the ground to deter theft or tampering.
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In a bid to fight fraud, the CBN requires the installation of anti‑skimming devices and surveillance cameras that record activity without capturing customers’ keystrokes. ATM networks must also comply with global Payment Card Industry Data Security Standards (PCI DSS) to protect cardholder data.
To improve service quality, the draft rules also impose maximum downtime limits, requiring that technical faults be resolved within 72 hours. Banks and deployers must clearly display helpdesk contacts and fee information at all machines.
A key consumer‑centric provision in the guidelines addresses failed ATM transactions: when machines don’t dispense cash or complete a withdrawal due to errors, banks must process refunds quickly with instant reversals for “on‑us” transactions and a maximum 48‑hour refund window for other cases.
The CBN will enforce the new standards through periodic audits, on‑site inspections, and monthly reporting requirements. Institutions that fail to comply risk regulatory penalties, although the specifics of those sanctions have not yet been published.
As Nigeria’s electronic payments landscape continues to evolve with millions of active cards in circulation and a booming digital economy, the regulator’s push for a denser, safer, and more customer‑friendly ATM network is being watched closely by banks, fintech players, consumer advocates, and everyday users.
