Copyright bizwatchnigeria
The Central Bank of Nigeria (CBN) has once again underscored its oversight role in Nigeria’s financial ecosystem by publishing draft guidelines for Automated Teller Machine (ATM) operations, ushering in a new era of digital-finance regulation at a pivotal moment. These updated directives, which supersede all prior ATM regulations, arrive at a time when financial inclusion, cybersecurity and infrastructure resilience are closely interlinked with the nation’s ambition for a robust digital economy. Among the core mandates: banks issuing cards must deploy at least one ATM for every 5,000 cards issued by 2028 — with a progressive compliance schedule that begins with 30 per cent adherence by 2026. That ratio is more than a numeric target. It signifies a strategic shift to broaden automated-banking access well beyond Nigeria’s traditional urban centres, to semi-urban and rural communities as part of the digital-inclusion drive. At the same time, the CBN’s requirement for deployment approvals suggests a deliberate attempt to avoid inefficient duplication and ensure each ATM installation aligns with a broader national payments-infrastructure architecture. For consumers, one headline improvement lies in the refund timeframe for failed transactions — a persistent grievance in Nigeria’s banking environment. “On-us” transactions (within the same bank) now must be reversed nearly instantly, or at worst within 24 hours if manual intervention is needed. “Not-on-us” transactions (involving different banks) must be completed within 48 hours — a significant improvement over the previous 72-hour benchmark and a step closer to global real-time refund standards. Additionally, the guidelines tighten transparency and oversight requirements. Banks must display fees clearly at ATM terminals and provide transaction receipts for all actions except balance enquiries — reinforcing consumer awareness and accountability. Security receives renewed emphasis. Under the new rules, every ATM must include: high-definition cameras covering transaction activity (without capturing keystrokes); anti-skimming and anti-tampering devices; annual cryptographic-key changes; and full compliance with Payment Card Industry Data Security Standard (PCI DSS). These measures reflect a holistic shift toward “cyber-resilience by design” across Nigeria’s ATM ecosystem. Operationally, banks must ensure maximal ATM downtime does not exceed 72 hours — a clear push toward better maintenance discipline and service-continuity. The CBN will conduct regular audits and banks are required to submit monthly compliance reports — covering transaction volumes, system failures, uptime data and customer complaints — by the 5th of each month. This introduces a real-time layer of regulatory intelligence into Nigeria’s banking oversight model. For the banking sector, these requirements imply significant capital investment: new ATM units, enhanced cybersecurity infrastructure and expanded deployments outside major urban centres. Mid-tier banks may feel margins compress initially, but the regulation also creates new avenues — especially for partnerships with fintechs, independent ATM deployers (IADs) and payment-service providers. Broader still, the directive feeds into the CBN’s larger strategic agenda: nurturing a secure, efficient and inclusive payments environment via the National Financial Inclusion Strategy (NFIS) and the evolving Cashless Policy. Rather than simply regulating, the CBN is redefining the architecture of trust in Nigeria’s digital-banking future. In the long term, the reform is likely to yield dividends in terms of transactional efficiency, enhanced public confidence and cross-channel interoperability — with Nigeria positioning itself as a visible model for balanced financial innovation on the continent. In summary, the new CBN ATM directive is more than a policy update — it’s a strategic inflection point toward a more resilient, secure and inclusive financial future for Nigeria.
