October 11, 2025-Published by Cyril

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.

The directive, which is part of sweeping reforms aimed at protecting consumers and restoring confidence in the banking system, was contained in a draft guideline released by the apex bank on Saturday titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”

The document, signed by the Director of the Payments System Policy Department, Musa I. Jimoh, was distributed to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.

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According to the guideline, failed “on-us” transactions—where customers use their own bank’s ATM—must be reversed instantly. If technical issues prevent immediate reversal, the affected bank must manually process the refund within 24 hours.

For “not-on-us” transactions, which involve other banks’ ATMs, refunds must be completed within 48 hours.

• “Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the CBN emphasized in the circular.

The apex bank also ordered all banks and ATM acquirers to deploy technology capable of automatically reversing failed or partial transactions, eliminating the need for customers to file complaints.

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Additionally, financial institutions holding customer funds due to failed disbursements are required to reconcile and return the balances immediately.

The CBN explained that the new measures address widespread frustration over delayed refunds and poor customer service. It added that the reforms form part of a broader effort to strengthen consumer protection, improve reliability, and modernize Nigeria’s payment infrastructure in line with global standards.

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