The Central Bank of Nigeria (CBN) has released new draft guidelines that will require banks and other financial institutions to provide instant refunds to customers for failed Automated Teller Machine (ATM) transactions.
The proposed framework, issued on October 9, 2025, aims to enhance consumer protection, strengthen public confidence in electronic payment channels, and promote accountability across the nation’s financial services sector.
According to the circular signed by Musa I. Jimoh, Director of the Payments System Policy Department, the policy is directed at deposit money banks, payment service providers, card schemes, and independent ATM operators. It outlines measures to improve response time, transparency, and dispute resolution in cases of unsuccessful cash withdrawals or card debits without value.
The apex bank stated that the move aligns with its broader commitment to modernising the payments ecosystem and reducing friction in customer transactions. It added that the new standards are expected to significantly reduce customer complaints related to delayed reversals and transaction errors.
Under the proposed guidelines, institutions will be required to automate refund processes, ensure system interoperability, and establish monitoring mechanisms that guarantee real-time reconciliation between issuing and acquiring banks.
The CBN has invited stakeholders to review the draft and submit feedback on the provisions by October 31, 2025, after which the final document will be published and implemented.
Once approved, the policy will represent a major step in reinforcing trust in Nigeria’s banking infrastructure, particularly for millions of customers who rely on ATMs for daily financial transactions.
