The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks and financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. The directive aims to rebuild public trust and strengthen consumer protection in Nigeria’s banking sector.
The CBN released the policy on Saturday in a draft guideline titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”
Musa I. Jimoh, Director of the Payments System Policy Department, signed the document and sent it to banks, card schemes, payment service providers, and independent ATM operators. Stakeholders have until October 31, 2025,to submit their feedback.
According to the CBN, banks must automatically reverse failed “on-us” transactions when customers use their own bank’s ATM. If technical issues prevent this, the bank must manually refund the customer within 24 hours. Banks must process refunds for “not-on-us” transactions; those performed on another bank’s ATM, within 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular emphasized.
The CBN also instructed banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to file complaints. Institutions holding customer funds from unsuccessful disbursements must promptly reconcile accounts and restore balances.
The apex bank said these reforms respond to widespread dissatisfaction over slow refund processing and poor customer service.
They form part of a broader strategy to modernize Nigeria’s payment systems, align operations with global standards, and enhance consumer confidence.
