The Central Bank of Nigeria (CBN) has directed banks and payment service providers to strengthen the country’s ATM network, mandating a minimum of one Automated Teller Machine (ATM) for every 7,500 payment cards issued by 2028.
Brandspur Banking News Desk reports that the guideline, issued in a circular dated March 13, 2026, requires financial institutions to achieve 30 per cent compliance in 2026, 60 per cent in 2027, and full adherence by 2028. The move is part of the apex bank’s broader initiative to modernise Nigeria’s payment infrastructure, enhance customer access to cash services, and align local practices with global standards.
The updated framework replaces provisions in the 2020 Guidelines on Electronic Payment Channels, addressing rapid changes in the payment ecosystem, including rising cyber threats, the expansion of digital finance, and increasing demand for financial inclusion. The CBN now requires all ATM transactions to be processed domestically, prohibiting any routing of local transactions to foreign acquirers or processors. All ATM networks must be interoperable, accepting cards from all authorised issuers, and deployed in secure, accessible locations.
Institutions wishing to operate independent ATMs must secure prior written approval from the CBN, providing corporate details, operational capacity evidence, and proof of partnership with banks responsible for cash provisioning. Operational standards now mandate maximum downtime of 72 consecutive hours, adequate vault cash levels, anti-skimming devices, surveillance cameras, secure transaction networks, and annual encryption key updates. Customer privacy remains protected, with cameras barred from recording keystrokes.
The new rules also introduce faster refunds and dispute resolution timelines. Failed on-us transactions must be reversed immediately, manual reversals completed within 24 hours, and not-on-us transaction refunds processed within 48 hours. Digital channels must be available for reporting dispense errors, eliminating the need for branch visits. Monthly returns on new ATM deployments and locations are required, with penalties for non-compliance.
The CBN’s directive aims to fortify Nigeria’s financial infrastructure, boost efficiency, and protect consumers while fostering broader financial inclusion across the nation.
