The Central Bank of Nigeria (CBN) has issued a directive mandating Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.
The new rule is part of a sweeping reform aimed at protecting consumers, improving service delivery, and restoring public confidence in Nigeria’s banking system.
This directive was contained in a draft guideline released on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”
Signed by the Director of the Payments System Policy Department, Musa I. Jimoh, the document was circulated to banks, payment service providers, card schemes, and independent ATM deployers. The apex bank has also invited stakeholder feedback by October 31, 2025.
According to the draft, failed “on-us” transactions — where a customer uses an ATM belonging to their own bank — must be reversed instantly. However, if technical issues prevent immediate reversal, the bank is required to manually process refunds within 24 hours.
For “not-on-us” transactions, involving ATMs owned by other banks, refunds must be completed within 48 hours.
The CBN emphasized that customers should not bear the consequences of failed transactions caused by system errors or network disruptions.
In addition, banks and ATM operators are now required to deploy technology capable of automatically reversing failed or partial transactions, eliminating the need for customers to file complaints.
Institutions holding customer funds due to failed disbursements must also immediately reconcile and refund such balances, the circular added.
The CBN noted that these measures are in response to growing customer frustration over delayed refunds and poor service across banks. They form part of a broader strategy to enhance consumer protection, modernise payment systems, and align Nigeria’s financial infrastructure with global standards.
