The Central Bank of Nigeria (CBN) has issued a firm directive to banks, fintechs, and other payment service providers to expand and standardise the nation’s Automated Teller Machine (ATM) network over the next three years. This policy aims to rebalance cash access and modernise infrastructure in line with evolving payment demands.
Under the new guidelines, “All card issuers shall deploy ATMs, of at least 1 ATM per every 7,500 payment cards issued.” The target is set for full implementation by the end of 2028, with staged compliance requirements of 30 percent in 2026 and 60 percent in 2027.
The mandate, communicated in a circular dated March 13, 2026 and signed by the Director of the Payments System Policy Department, reflects the central bank’s assessment that the current ATM footprint does not adequately meet demand. The directive also replaces older provisions in the previous ATM and electronic payment guidelines to align regulatory standards with current market realities.
This ratio requirement is designed to strengthen physical access to cash and transaction services across urban and rural regions, especially as digital finance and card usage rise. The move recognises that Nigeria’s payment ecosystem is rapidly changing, with cash still central to consumer transactions even as electronic payments grow.
In addition to density requirements, the CBN has introduced new operational rules to improve reliability, security, and consumer protection. All ATM transactions must now be processed by companies operating within Nigeria as acquirer‑processors. The guidelines explicitly ban any card network from forcing domestic ATM transactions to be routed or authorised outside the country.
The policy also mandates that ATMs must be interoperable and accept all cards issued in Nigeria, effectively eliminating isolated or closed ATM networks. Financial institutions cannot deploy ATMs without prior written approval from the CBN, and must demonstrate operational capacity as well as meaningful partnerships with cash‑servicing banks.
Performance and security standards are tightened. Operators are required to maintain ATM uptime, ensuring that technical faults do not persist beyond 72 hours without customer notification. Machines must maintain adequate cash levels, avoid dispensing unfit banknotes, and prominently display helpdesk contacts and transaction fees. Anti‑skimming devices and appropriate surveillance systems are also required to protect users.
To bolster fraud prevention, the guidelines require regular encryption key changes on ATM terminals and immediate reporting of suspicious transactions. Customers must be given receipts on request that detail transaction amount, terminal identity, date and time.
The guidelines improve dispute resolution and refund procedures. Failed transactions on the same bank’s ATM must be reversed instantly, while errors on ATMs of other institutions must be resolved within 48 hours. Automated refund triggers are to be deployed so that reversals occur even without customer complaints.
To monitor compliance, ATM deployers must submit monthly reports on new installations and locations. The CBN has warned that non‑compliance will attract appropriate sanctions.
This directive is analytical in its focus on infrastructure gaps and is firm in its deadlines and compliance expectations, signalling a significant regulatory push toward strengthening Nigeria’s payment infrastructure over the next three years.
