As part of efforts to boost access to cash, the Central Bank of Nigeria (CBN) has mandated that all banks and card issuers must deploy at least one Automated Teller Machine (ATM) for every 7,500 payment cards issued. According to the, “Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria,” issued by the apex bank, over the weekend, this requirement must be fully met by 2028, with a mandatory phased implementation starting with a 30 per cent target in 2026.
Specifically, the guidelines stated: “All card issuers shall deploy ATMs, of at least one ATM per every 7,500 payment cards issued. This level shall be achieved over a period of three years, of which compliance levels are staggered as follows 30% (1st Year – 2026), 60% (2nd Year – 2027), (3rd year 100% – Year 2028).” The CBN explained that the new guidelines were designed to strengthen ATM deployment standards, improve customer access to cash services and align Nigeria’s payment infrastructure with global regulatory practices.
It also noted that the updated guidelines, which replaced the provisions on ATM operations contained in the 2020 Guidelines on the Operations of Electronic Payment Channels and all previous ATM regulations, became necessary following rapid changes in the payment ecosystem, including rising cyber threats, expanding digital finance and growing demand for financial inclusion.
In addition to the new density requirements for ATM deployment, the latest CBN guidelines also introduced stricter rules governing ATM deployment, processing arrangements and interoperability across the financial system. Under the framework, all ATM transactions carried out in the country must be processed by a company operating within the country as an acquirer-processor.
The guidelines further prohibited any card scheme from compelling Nigerian banks or acquirers to route domestic ATM transactions outside the country for processing or authorisation. “No card or payment scheme shall compel any issuer or acquirer to send any transaction outside the country for processing, authorisation or switching,” the guidelines stated.
Furthermore, according to the guidelines, all ATM transactions involving Nigerian card issuers must be settled through a domestic settlement arrangement operated by a Nigerian company, with collateral denominated in naira and kept within the country. The CBN also barred the deployment of stand-alone or closed ATM networks, stressing that all ATM systems must be interoperable.
It also directed that ATMs must accept all cards issued in Nigeria by authorised issuers and should be installed in locations that provide safe and convenient access to customers. Financial institutions seeking to operate as independent ATM deployers must also obtain prior written approval from the CBN before commencing deployment activities.
In addition, the CBN directed that ATM downtime resulting from technical faults must not exceed 72 consecutive hours except where customers are duly notified. Operators are also required to maintain adequate vault cash levels to prevent machines from running out of cash, while ATMs must not be loaded with unfit banknotes.
The framework further directed that ATM terminals display helpdesk contact information and disclose applicable transaction charges to customers. Receipts must also be issued for transactions where requested, showing details such as transaction amount, terminal identity, date and time.
As part of efforts to strengthen fraud prevention, the CBN directed ATM deployers to install anti-skimming devices, surveillance cameras and secure transaction networks capable of protecting customer data. However, surveillance cameras must not record customers’ keystrokes during transactions.
The guidelines also require ATM encryption keys to be changed at least once every year, while suspicious transactions detected through ATM systems must be reported to the Central Bank. The regulator also introduced strict timelines for resolving failed ATM transactions to enhance customer protection.
