Table of Contents
- CBN Orders Refunds for Failed ATM Transactions
- Details of the Directive
- Types of Transactions and Refund Requirements
- Consumer Protection Measures
- Broader Efforts by CBN
The Central Bank of Nigeria (CBN) has instructed Deposit Money Banks and other financial institutions to reimburse customers for unsuccessful Automated Teller Machine (ATM) transactions within 48 hours.
This directive is part of a comprehensive reform aimed at safeguarding consumers and restoring trust in the banking system.
This information is outlined in a draft guideline released by the central bank on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”
The document, signed by Musa I. Jimoh, Director of the Payments System Policy Department, was distributed to banks, payment service providers, card schemes, and independent ATM deployers, with a request for stakeholder feedback by October 31, 2025.
According to the draft, failed “on-us” transactions, where customers utilize their own bank’s ATM, must be reversed immediately. If technical issues prevent an instant reversal, the bank is obligated to manually refund the customer within 24 hours.
For “not-on-us” transactions, which involve ATMs from other banks, refunds must be processed within 48 hours.
“Customers should not be penalized for failed transactions resulting from system errors or network issues,” the circular emphasized.
The central bank also required banks and ATM acquirers to implement technology that automatically reverses failed or partial transactions, eliminating the necessity for customers to file complaints.
It stated that institutions holding customer funds due to failed disbursements must promptly reconcile and return any outstanding balances.
The CBN indicated that these measures address widespread dissatisfaction regarding delayed refunds and inadequate customer service. They are part of a wider initiative to enhance consumer protection, boost reliability, and modernize Nigeria’s payment infrastructure in accordance with global standards.
Frequently Asked Questions
What is the new directive from the CBN regarding ATM transactions?
The CBN has mandated that financial institutions must refund customers for failed ATM transactions within 48 hours to enhance consumer protection and restore confidence in the banking system.
What are the requirements for refunding failed transactions?
For “on-us” transactions, refunds must be processed immediately or within 24 hours if there are technical issues. For “not-on-us” transactions, refunds must be completed within 48 hours.
Why is the CBN implementing these measures?
These measures are being implemented to address customer frustrations regarding delayed refunds and poor service, while also modernizing Nigeria’s payment infrastructure to meet global standards.
