The Central Bank of Nigeria, CBN, has ordered Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine, ATM, transactions within 48 hours.
This directive is in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.
This is contained in a draft guideline released by the apex bank on Saturday, 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.
Under the draft, 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.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.
The apex bank also mandated banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.
It said that institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.
The CBN said these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.