CBN Orders Banks to Refund Failed ATM Transactions Within 48 Hours

New Directive Aims to Restore Public Confidence, Modernize Nigeria’s ATM Transactions System, and Enforce StrictConsumer Protection Standards.

If you’ve ever stood helplessly in front of an ATM after a failed withdrawal, watching your money vanish into thin air while your account balance takes the hit, you’re not alone. It’s one of the most frustrating realities of banking in Nigeria.

But relief might finally be on the way. The Central Bank of Nigeria (CBN) has just issued a powerful directive that could change everything. Under the new rule, banks and other financial institutions must refund customers for failed ATM transactions within 48 hours, no excuses, no delays, no “come back next week.” This policy isn’t just a minor tweak. It’s a bold consumer protection move aimed at restoring public confidence and modernizing Nigeria’s banking system.

Breaking Down the New CBN Guidelines

According to the CBN’s draft document titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria”, the apex bank wants banks to act fast, and smart.

Here’s how it works:

• If the failed transaction happens on your bank’s own ATM (“on-us” transaction), the refund must be automatic, or manually completed within 24 hours.
• If it’s another bank’s ATM (“not-on-us” transaction), the refund must be completed within 48 hours.

And for customers? No more filing endless complaints or waiting weeks for “technical issues” to be resolved. The new system requires banks to automatically reverse failed or partial transactions, saving Nigerians time and unnecessary stress.

As the CBN bluntly puts it: “Customers must not be made to suffer for failed transactions caused by system errors or network failures.”

But the reforms don’t stop at refunds. The CBN is going full throttle to improve the quality, availability, and safety of ATM services across the country. Under the proposed framework, banks must:

• Deploy more ATMs: At least one ATM for every 5,000 active bank cards — with full compliance by 2028.
• Upgrade security: All ATMs must have anti-skimming technology, CCTV surveillance, and be installed in well-lit or enclosed areas.
• Promote accessibility: At least 2% of ATMs must have tactile features for visually impaired users.
• Improve user experience: ATMs must dispense cash before returning cards, issue receipts (except for balance inquiries), show clear transaction fees, and only dispense clean notes.
• Stay powered up: Backup systems must be in place to prevent downtime, which is capped at 72 consecutive hours.

If an ATM remains down beyond that limit, the operator must publicly disclose why and provide a restoration timeline.

Why This Matters for Nigerians

For years, Nigerians have voiced anger over poor banking services, failed transactions, and slow refunds that sometimes take weeks to resolve. In many cases, people have simply given up, losing faith in digital banking altogether.

The CBN’s latest move is an acknowledgment of these frustrations, and a decisive attempt to fix them. It’s also a recognition that Nigeria’s economy can’t thrive on unreliable financial infrastructure. The goal, according to the CBN, is to “build a payments system that works seamlessly for everyone, urban and rural users alike.” That means whether you’re withdrawing cash in Lagos or topping up your account in Enugu, your banking experience should be smooth, secure, and fair.

The CBN has invited feedback from banks, payment service providers, and other stakeholders until October 31, 2025, after which the guidelines will be finalized and implemented before the end of the year. To ensure compliance, the central bank will conduct routine audits, physical inspections, and monthly performance reviews. Non-compliant institutions will face sanctions, though the exact penalties are yet to be disclosed.

This directive is a breath of fresh air for millions of Nigerians who have endured endless frustration chasing failed ATM refunds. If properly enforced, it could restore trust in the banking system and reduce the time wasted in queues and complaint desks. However, Nigerians will be watching closely, because without strict penalties, these “guidelines” risk becoming just another well-written document that banks ignore. Accountability, not announcements, will determine whether this policy truly changes customer experience.

The CBN’s 48-hour refund rule is more than a policy update, it’s a statement of intent. It says that Nigerian consumers deserve respect, efficiency, and transparency in their financial dealings.

If the apex bank can make this reform stick, it won’t just fix ATM frustrations, it could mark the beginning of a new era of customer-first banking in Nigeria.

READ MORE