CBN Sets New ATM Deployment and Security Guidelines to Boost Access and Consumer Protection

Reported by: Oahimire Omone Precious | Edited by: Henry Owen

The Central Bank of Nigeria (CBN) has introduced a comprehensive framework for the deployment, operation, and security of Automated Teller Machines (ATMs) across the country, aimed at improving accessibility, safeguarding users, and ensuring transparency in electronic transactions.

According to the new directive, all card-issuing institutions are mandated to deploy one ATM for every 5,000 cards issued by 2028, with an initial rollout target of 30% by 2026. Each ATM installation must receive prior approval from the CBN and be located in secure, accessible areas.

In the area of customer refunds, the guidelines stipulate that failed "on-us" transactions — those involving the same bank — must be reversed instantly, or within a maximum of 24 hours if processed manually. For “not-on-us” transactions — involving different banks — customers should receive refunds within 48 hours.

The apex bank also emphasized stronger security measures, requiring all ATMs to be fitted with functional cameras (excluding keystroke recording), anti-skimming technology, and encryption systems that comply with Payment Card Industry Data Security Standards (PCI DSS). Additionally, cryptographic keys must be updated at least once every year to prevent unauthorized access.

Operationally, the new rules set a 72-hour maximum downtime limit for ATMs, stressing the importance of uninterrupted cash availability and system functionality. Banks must also ensure clear display of transaction fees and provide receipts for all transactions, except for balance inquiries.

To enforce compliance, the CBN announced that it will conduct periodic audits and require all operators to submit monthly compliance reports no later than the 5th of each month. Financial institutions that fail to adhere to the directives risk regulatory penalties.

The new guidelines reflect the CBN’s ongoing commitment to strengthening Nigeria’s digital banking infrastructure, promoting consumer protection, and fostering confidence in the nation’s financial ecosystem.

📰 Stone Reporter News
🌍 stonereportersnews.com | ✉️ info@stonereportersnews.com

📘 Facebook: Stone Reports | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews