The Central Bank of Nigeria (CBN) has issued a firm ultimatum to banks and card issuers to increase ATM deployment across the country or be ready to face sanctions.
In guidelines released on Friday, the apex bank has set a firm national standard of at least one ATM for every 7,500 payment cards issued to be fully achieved by December 2028.
The directive, contained in a circular dated March 13, 2026, and signed by Musa I. Jimoh, Director of the Payments System Policy Department, applies to all banks, card issuers, and payment service providers.
The new rule is phased in over three years: 30 percent compliance by the end of 2026, 60 percent by 2027, and 100 percent the following year. The exact wording in the guidelines leaves no room for ambiguity: “All card issuers shall deploy ATMs of at least 1 ATM for every 7,500 payment cards issued.”
This is no minor tweak. It replaces scattered provisions in the 2020 Guidelines on Electronic Payment Channels and introduces a comprehensive new framework designed, the CBN says, to “strengthen ATM deployment standards, improve customer access to cash services, and align Nigeria’s payment infrastructure with global regulatory practices.”
Nigeria’s ATM network has struggled to keep pace with explosive card growth and the lingering effects of past cash shortages. Recent industry data show just over 16,700 active ATMs nationwide, even as millions more debit and credit cards circulate.
The regulator explicitly cited “rapid changes in the payment ecosystem, including rising cyber threats, expanding digital finance, and growing demand for financial inclusion” as the drivers for the overhaul.
Local Control, Full Interoperability
Beyond sheer numbers, the guidelines tighten control over how ATMs actually work. Key provisions include:
- Domestic processing only: Every ATM transaction in Nigeria must be handled by a locally licensed acquirer-processor. No card scheme may force banks or acquirers to route domestic transactions abroad for authorization or switching.
- Domestic settlement: All settlements involving Nigerian-issued cards must go through a Nigerian-operated system, with collateral held in naira inside the country.
- No closed networks: Stand-alone or proprietary ATM systems are banned. Every machine must be fully interoperable and accept cards from any authorized Nigerian issuer.
- Safe and visible locations: ATMs must be placed where customers can access them securely and conveniently.
Independent ATM deployers (companies that own and run machines without being full banks) must now obtain prior written approval from the CBN, submit detailed corporate and operational plans, and prove they have partnered with banks for cash replenishment.
Tougher Rules on Reliability and Customer Protection
The CBN has also drawn a hard line on day-to-day operations:
- Technical downtime may not exceed 72 consecutive hours unless customers are properly notified.
- Machines must always carry enough “vault cash” and may never be loaded with unfit or counterfeit notes.
- Every terminal must prominently display helpdesk numbers, transaction charges, and issue detailed receipts on request (showing amount, terminal ID, date, and time).
Security has been upgraded significantly. Deployers must install anti-skimming devices, surveillance cameras (which explicitly may not record customers’ keystrokes), and robust encryption. Encryption keys must be changed at least annually, and any suspicious activity must be reported immediately to the CBN.
Faster Refunds, Fewer Excuses
Perhaps the most customer-friendly changes concern failed transactions. The guidelines set strict timelines:
- “On-us” transactions (same bank) must be reversed instantly.
- Technical failures requiring manual reversal must be fixed within 24 hours.
- Inter-bank (“not-on-us”) refunds must be completed within 48 hours.
Crucially, operators must now use automated systems that trigger refunds immediately; customers should no longer have to complain or wait for their bank to chase the matter. Failed-transaction reports can be lodged through web or mobile apps without visiting a branch.
Enforcement Will Be Strict
The CBN has signaled it means business. Institutions must submit monthly returns, including new ATM locations, to the Payments System Supervision Department by the 5th of the following month. Periodic audits and on-site inspections will follow. Non-compliance will attract “appropriate penalties” under existing CBN regulations.
What It Means for Nigerians and Banks
For ordinary customers, especially in underserved urban neighborhoods and rural areas, the policy promises shorter queues, fewer “out-of-service” signs, and quicker resolution when machines swallow cards or make errors.
For the banking industry, it means fresh capital expenditure at a time when many institutions are already investing heavily in digital channels.
Earlier drafts of the guidelines had floated a stricter ratio of one ATM per 5,000 cards. The final 7,500 figure suggests the CBN listened to industry feedback on costs while still insisting on meaningful expansion.
The message from the apex bank is unmistakable: in an era of digital wallets and contactless payments, cash remains king for millions of Nigerians, and the machines that dispense it must finally catch up. Banks now have their marching orders. The countdown to 2028 has begun.
WHAT YOU SHOULD KNOW
The Central Bank of Nigeria has mandated that every bank and card issuer must deploy at least one ATM for every 7,500 payment cards issued, with full compliance required by 2028.
Nigeria is enforcing a strict national ATM density ratio to finally improve widespread cash access, reduce long queues, and strengthen the cash infrastructure—while keeping all processing, settlement, and security firmly domestic and interoperable.
Banks now face a clear three-year countdown (30% in 2026 → 60% in 2027 → 100% in 2028) or penalties.
