The Central Bank of Nigeria (CBN) has unveiled comprehensive new standards governing the deployment, operation, maintenance, and security of Automated Teller Machines across the country.
The apex bank’s circular, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” issued over the weekend, replaces all previous ATM regulations.
Under the new framework, card-issuing institutions must install a minimum of one ATM for every 5,000 payment cards in circulation. The CBN has mandated a phased implementation approach, requiring 30% compliance in 2026, with full implementation expected by 2028.
The guidelines stipulate that ATMs must be positioned in secure locations that protect user safety and transaction privacy. Outdoor installations are prohibited unless machines are permanently secured to the ground.
“ATM deployment, redeployment, and decommissioning require prior written approval from the CBN,” the circular states. Independent ATM Deployers must obtain CBN authorization and fulfill licensing requirements, including demonstrating partnerships with banks for cash supply arrangements.
In a significant improvement for customers, the CBN has drastically reduced resolution timelines for failed transactions. For same-bank ATM transactions, reversals must occur instantly, with manual processing limited to 24 hours if technical problems prevent immediate resolution. Cross-bank transaction refunds must be completed within 48 hours.
Additional provisions include mandatory automatic refund mechanisms for cash dispensing errors, camera surveillance recording all activities except PIN entries, annual ATM key replacements, and free PIN changes for customers.
The regulations require compliance with Payment Card Industry Data Security Standards and limit technical downtime to 72 consecutive hours. Banks must ensure continuous cash availability and maintain helpdesk information visibly displayed at all machines.
The CBN will enforce compliance through periodic audits and onsite inspections. Financial institutions must submit monthly reports by the fifth day of each subsequent month, with penalties imposed for non-compliance.
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