The Central Bank of Nigeria (CBN) has instructed banks and card issuers to sharply expand the number of Automated Teller Machines nationwide, setting a new benchmark of one ATM for every 7,500 payment cards by 2028.
The directive is contained in newly issued Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria, dated March 13, 2026, and signed by Musa I Jimoh.
The circular was addressed to banks, financial institutions and payment service providers operating within the country.
Under the framework, compliance will be phased over three years, with institutions required to meet 30 per cent of the target in 2026, 60 per cent in 2027, and full compliance by 2028.
The central bank said the gradual rollout is designed to give operators enough time to scale infrastructure.
According to the regulator, the revised rules aim to strengthen ATM deployment standards, widen access to cash services and align Nigeria’s payments infrastructure with global best practice, amid growing digital finance adoption and heightened cyber risks.
The new guidelines replace earlier provisions contained in the 2020 Guidelines on the Operations of Electronic Payment Channels in Nigeria.
Tighter rules on processing and interoperability
Beyond expanding ATM density, the framework introduces stricter requirements for transaction processing, settlement and interoperability. All ATM transactions carried out in Nigeria must now be processed by an acquirer-processor operating within the country.
Card schemes are also barred from requiring Nigerian banks or acquirers to route domestic ATM transactions abroad for processing, authorisation or switching. In addition, all such transactions must be settled through a domestic arrangement run by a Nigerian company, with collateral denominated in naira and held locally.
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The central bank further prohibited closed or stand-alone ATM networks, insisting that all machines be fully interoperable and capable of accepting cards issued by licensed institutions in Nigeria.
Independent ATM deployers must obtain prior written approval before commencing operations and are required to submit corporate details, demonstrate operational capacity and show evidence of partnerships with banks responsible for cash provisioning.
Security, uptime and consumer protection
The guidelines introduce enhanced performance and security standards, including a maximum downtime of 72 consecutive hours for ATMs affected by technical faults, except where customers are duly notified.
Deployers must install anti-skimming devices, surveillance cameras and secure transaction networks to protect customer data, although cameras are expressly barred from capturing customers’ keystrokes. Encryption keys are to be changed at least once a year, while suspicious transactions must be reported to the CBN.
Faster refunds for failed transactions
Addressing frequent customer complaints, the regulator has tightened timelines for resolving failed ATM transactions. Operators are now required to deploy automated refund systems capable of triggering reversals without waiting for formal complaints.
Customers must also be able to report dispense errors through digital channels, including mobile and web platforms, without visiting bank branches.
Compliance and enforcement
The CBN said it will carry out regular audits and on-site inspections to ensure adherence. Operators must submit monthly reports on new ATM deployments and locations to the Payments System Supervision Department by the fifth day of the following month.
Institutions that fail to comply with the new rules risk regulatory sanctions. The central bank said the measures are expected to expand Nigeria’s ATM network, improve cash access and strengthen security across the payments ecosystem.