Nigeria TV Info — CBN Orders Banks to Refund Customers for Failed ATM Transactions Within 48 Hours

Abuja, Nigeria — October 12, 2025: The Central Bank of Nigeria (CBN) has issued a new directive compelling Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. The move marks a major reform aimed at strengthening consumer protection and rebuilding public trust in the nation’s banking system.

The directive was outlined in a draft guideline released on Saturday by the apex bank, 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 circulated to banks, payment service providers, card schemes, and independent ATM deployers. The CBN also invited stakeholders to submit feedback on the proposed guidelines by October 31, 2025.

According to the draft, failed “on-us” transactions — where customers use ATMs belonging to their own bank — must be reversed instantly. However, if technical issues prevent immediate reversal, the bank must manually refund the customer within 24 hours.

For “not-on-us” transactions, involving 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 circular emphasized.

In what is seen as a significant technological and operational reform, the CBN further directed banks and ATM operators to adopt automated systems that can instantly detect and reverse failed or partial transactions, eliminating the need for customers to file complaints before receiving refunds.

The policy, once finalized, is expected to enhance transparency, improve service reliability, and ensure greater accountability across Nigeria’s banking and payment systems.