Reported by: Ijeoma G | Edited by: Henry Owen
Abuja, Nigeria — The Central Bank of Nigeria (CBN) has unveiled plans to introduce a new regulatory policy aimed at overhauling how Nigerian banks issue debit cards and operate Automated Teller Machines (ATMs), in a bid to address persistent cash access challenges that have frustrated customers nationwide. The announcement was made at the 2026 Committee of Heads of Bank Operations Conference by Fatai Karim, Special Adviser to CBN Governor Yemi Cardoso, signalling an imminent shift in the country’s payment system regulation.
According to the CBN, the proposed policy will ensure that the number of debit cards issued by banks aligns more closely with their deployed ATM infrastructure, a move expected to reduce chronic congestion at cash points, minimise machine downtime and improve the distribution of physical cash across urban and rural areas. Frequent ATM failures and uneven cash availability have eroded public confidence in traditional cash access channels, even as digital payment systems expand rapidly, the apex bank noted.
CBN officials said the new framework will require banks to tie debit card issuance to ATM capacity, effectively preventing financial institutions from issuing large volumes of cards without corresponding investments in cash logistics and ATM deployment. This measure is intended to ensure that consumers have more reliable and equitable access to cash, reducing long queues, machine outages and the frustration that often drives customers toward informal cash withdrawal options or costly point-of-sale alternatives.
The apex bank emphasised that the policy will be rolled out after consultations with industry stakeholders and is expected to take effect within the next few months, possibly before the end of the second quarter of 2026. If implemented as planned, the policy could reshape banks’ approach to card issuance, ATM placement and cash management — with the dual goals of enhancing service reliability and restoring public trust in Nigeria’s payment infrastructure.
CBN authorities stressed that failing to match card issuance with ATM and cash distribution infrastructure has had broader repercussions for financial system credibility. “When cash access fails — whether due to prolonged ATM outages or uneven distribution — the credibility of the entire payment system is weakened,” the apex bank said, underscoring the importance of reliable ATM networks in maintaining consumer confidence in both physical and electronic payment options.
The planned regulation dovetails with recent efforts by the CBN to modernise Nigeria’s cash handling ecosystem and streamline payment channels. Earlier draft guidelines on ATM operations have proposed minimum standards for deployment, maintenance and consumer protection, including automatic refunds for failed transactions and compliance with global security practices.
By aligning debit card issuance more closely with ATM infrastructure, the CBN hopes to strike a better balance between the growth of digital payment adoption and the continued importance of cash availability — a critical concern for rural communities, informal sectors and individuals who rely on ATMs as their primary access point for physical currency.
The policy announcement comes amid broader monetary and regulatory reforms aimed at stabilising Nigeria’s cash circulation, improving financial inclusion and enhancing the resilience of the banking system against operational bottlenecks and service disruptions.
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