The Central Bank of Nigeria (CBN) has proposed new rules mandating banks and payment providers to refund customers for failed Automated Teller Machine (ATM) transactions within a strict timeframe of 24 to 48 hours, in a major push to resolve one of the most persistent pain points in Nigeria’s electronic payments system.

According to the draft Guidelines on the Operations of Automated Teller Machines in Nigeria, released by the apex bank for stakeholder review, failed “on-us” transactions — where customers use ATMs belonging to their own banks — must be reversed instantly, or within 24 hours if technical issues prevent immediate reversal.

For “not-on-us” transactions involving ATMs of other banks, the CBN stipulates a maximum reversal window of 48 hours.

“Failed on-us ATM transactions reversal shall be instant. However, where instant reversal fails due to technical issues or other system glitches, the timeline for manual reversal shall not exceed 24 hours,” the apex bank says. “The timeline for refunds on failed not-on-us ATM transactions shall not exceed 48 hours.”

If implemented, the new rule will significantly shorten the waiting time for customers who currently endure delays of days or even weeks before receiving refunds after failed withdrawals.

According to the draft Guidelines on the Operations of Automated Teller Machines in Nigeria, released by the apex bank for stakeholder review, failed “on-us” transactions — where customers use ATMs belonging to their own banks — must be reversed instantly, or within 24 hours if technical issues prevent immediate reversal.

ATM: Fixing a system long plagued by delays 

The proposal marks one of the CBN’s strongest efforts yet to strengthen consumer protection in the financial services industry, as the regulator intensifies its drive to enhance reliability and trust in Nigeria’s payment systems.

Delayed or incomplete reversals have long been a major consumer complaint, with customers frequently citing instances of being debited during failed ATM withdrawals and facing lengthy refund processes.

The new rules aim to eliminate that uncertainty by compelling acquirers — the institutions that own and operate ATMs — to proactively monitor and initiate refunds “without prompting from the issuing bank or the customer.”

The CBN further directs acquirers to reconcile and refund all funds in their possession that belong to customers due to partial or non-dispense errors — a move seen as tightening operational accountability across the ATM ecosystem.

A wider reform of ATM operations 

The refund timeline is part of a broader reform of ATM operations nationwide. The draft guidelines, open for public comment for four weeks, introduce new standards covering deployment, accessibility, maintenance, and security of ATMs.

According to the CBN, the rules are designed to “promote improved access to ATM services in urban and rural areas, strengthen security protocols, and enhance consumer protection.”

Among the key provisions:

• ATM downtime due to technical faults must not exceed 72 consecutive hours.
• Helpdesk contacts must be clearly displayed at ATM terminals and remain functional.
• Cash retraction features are to be disabled to avoid confusion or loss.
• Online monitoring of ATM cash levels and failure causes is now mandatory.

The CBN also introduced new ATM density requirements, directing card issuers to deploy at least one ATM per 5,000 payment cards issued by 2028, to improve cash access nationwide.

By tightening refund timelines and mandating greater transparency at ATM terminals, the apex bank appears intent on restoring consumer confidence in a payments landscape that has grown rapidly but remains inconsistent in service quality.

The draft guidelines are open to public feedback for four weeks, after which the CBN will finalise the document for implementation.

The apex bank invites stakeholders, including banks, independent ATM deployers, and payment service providers to submit their comments for consideration.