The Central Bank of Nigeria (CBN) has issued a directive requiring deposit‑money banks and other financial institutions to refund customers for failed ATM transactions within 48 hours. This initiative is part of a broader effort to strengthen consumer protection, improve the reliability of the banking system, and modernise Nigeria’s payment infrastructure in line with global standards.
The directive is set out in a draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.” Signed by Musa I. Jimoh, Director of the Payments System Policy Department, the document was circulated to banks, payment‑service providers, card schemes and independent ATM deployers, with a request for stakeholder feedback by 31 October 2025.
According to the draft, failed “on‑us” transactions—where customers use their own bank’s ATM—must be reversed instantly. If technical glitches prevent an immediate reversal, the bank must 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 emphasizes that customers should not suffer because of system errors or network failures. Consequently, banks and ATM acquirers are required to deploy technology that automatically reverses failed or partial transactions, eliminating the need for customers to lodge complaints. 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. By introducing the guidelines, the apex bank aims to restore confidence, promote transparency, accountability and efficiency in ATM and other payment‑system operations, and improve the overall banking experience for consumers. As the deadline for stakeholder feedback approaches, the CBN is poised to finalise the guidelines and implement the changes that will benefit consumers and foster a more reliable banking system.
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