The Central Bank of Nigeria (CBN) has unveiled new draft guidelines for Automated Teller Machine (ATM) operations, aimed at improving accessibility, security, and consumer protection across the country. The updated framework, which supersedes previous regulations, outlines stringent deployment, operational, and compliance standards for financial institutions and ATM service providers.
Key Highlights:
- Deployment Targets: Card issuers are now required to deploy one ATM per 5,000 issued cards by 2028, with an initial compliance rate of 30% by 2026. All ATMs must receive CBN approval and be placed in secure, accessible locations.
- Refund Timelines:
- “On-us” transactions (same bank): Instant reversal for failed transactions; up to 24 hours if processed manually.
- “Not-on-us” transactions (different banks): Refunds must be completed within 48 hours.
- Security Enhancements: ATMs must be equipped with surveillance cameras (excluding keystroke recording), anti-skimming devices, and undergo annual cryptographic key changes. All systems must comply with PCI DSS (Payment Card Industry Data Security Standard).
- Operational Standards:
- Maximum allowable downtime: 72 hours
- ATMs must maintain constant cash availability
- Clear display of transaction fees
- Receipts must be issued for all transactions except balance inquiries
- Compliance and Oversight: The CBN will conduct regular audits, and financial institutions are required to submit monthly compliance reports by the 5th of each month. Penalties will apply for non-compliance.
These reforms are part of the CBN’s broader effort to modernize Nigeria’s payment infrastructure and ensure a more reliable and secure banking experience for consumers.
