The Central Bank of Nigeria (CBN) has directed commercial banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The directive, contained in a draft guideline released on Saturday, is part of sweeping reforms aimed at protecting consumers and restoring public confidence in the banking system.
According to the document signed by Musa I. Jimoh, Director of the Payments System Policy Department, failed transactions on a customer’s own bank ATM must be reversed instantly. Where technical issues prevent this, refunds must be completed within 24 hours.
For transactions carried out on another bank’s ATM, refunds must be processed within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stated.
The CBN also ordered banks and ATM operators to deploy technology that automatically reverses failed or partial transactions, eliminating the need for customers to lodge complaints.
Key Reforms in the Draft Guidelines
- Refunds:
- On-us transactions (same bank ATM): instant or within 24 hours.
- Not-on-us transactions (other bank ATM): within 48 hours.
- ATM Deployment:
- One ATM for every 5,000 active cards.
- Compliance targets: 30% by 2026, 60% by 2027, and 100% by 2028.
- Security & Accessibility:
- ATMs must have CCTV, anti-skimming devices, and be placed in safe, well-lit areas.
- At least 2% of ATMs must include tactile features for visually impaired users.
- Service Standards:
- Cash must be dispensed before returning cards.
- Free PIN changes and receipts for all transactions (except balance checks).
- Only clean banknotes to be dispensed.
- Backup power required to reduce downtime.
- Downtime must not exceed 72 hours, after which operators must inform the public.
- Oversight:
- Monthly reports to CBN.
- Regular audits and inspections.
- Sanctions for defaulting institutions.
Why It Matters
The CBN said the reforms were necessary due to rising complaints about failed transactions, cyber fraud, and poor service quality. With over 200 million cardholders in Nigeria, the apex bank noted that the goal is to build a payment system that works “seamlessly for everyone, urban and rural users alike.”
Stakeholders have until October 31, 2025 to submit feedback before the final policy is adopted, which could take effect before the end of the year.
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