The Central Bank of Nigeria (CBN) has issued a directive requiring Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. This move is part of a broader effort to enhance consumer protection, improve the reliability of the banking system, and modernize Nigeria’s payment infrastructure in line with global standards.
The directive is outlined in a draft guideline released by the CBN, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.” The document, signed by the Director of Payments System Policy Department, Musa I. Jimoh, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.
According to the draft guideline, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly. If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours. For “not-on-us” transactions, involving other banks’ ATMs, refunds must be processed within 48 hours.
The CBN has emphasized that customers should not be made to suffer for failed transactions caused by system errors or network failures. To this end, banks and ATM acquirers are mandated to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints. Additionally, institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.
These measures respond to widespread frustration over delayed refunds and poor customer service in Nigeria’s banking system. The CBN’s initiative aims to restore confidence in the system and provide a better experience for consumers. By introducing these guidelines, the apex bank seeks to promote transparency, accountability, and efficiency in the operations of ATMs and other payment systems.
The new guidelines are expected to have a positive impact on Nigeria’s banking sector, which has faced criticism for its handling of failed transactions and customer complaints. As the CBN continues to work towards enhancing consumer protection and modernizing the payment infrastructure, customers can expect improved services and reduced frustration with failed ATM transactions. With the deadline for stakeholder feedback approaching, the CBN is poised to finalize the guidelines and implement the necessary changes to benefit consumers and promote a more reliable banking system.