Pecohub The Central Bank of Nigeria (CBN) has directed banks and other card issuers to expand the deployment of Automated Teller Machines (ATMs) across the country, mandating a minimum ratio of one ATM for every 7,500 payment cards issued by 2028.
According to the Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria issued by the apex bank, “All card issuers shall deploy ATMs, of at least 1 ATM per every 7,500 payment cards issued.”
The directive was contained in a circular dated March 13, 2026, signed by the Director of the Payments System Policy Department, Musa I. Jimoh, and addressed to banks, other financial institutions and payment service providers.
The CBN stated that compliance with the requirement will be phased over three years, with financial institutions expected to achieve 30 per cent compliance in 2026, 60 per cent in 2027, and full compliance by 2028.
The apex bank explained that the updated framework is designed to strengthen ATM deployment standards, improve customer access to cash services and align Nigeria’s payment infrastructure with global regulatory practices.
It noted that the review became necessary following rapid changes in the payment ecosystem, including rising cyber threats, expanding digital finance and growing demand for financial inclusion.
The document also replaces earlier provisions on ATM operations contained in the 2020 Guidelines on the Operations of Electronic Payment Channels in Nigeria.
Beyond the new density requirement, the CBN introduced stricter rules governing ATM deployment, processing arrangements and interoperability across the financial system.
Under the framework, all ATM transactions carried out in Nigeria must be processed by a company operating within the country as an acquirer-processor.
The guidelines further prohibit 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, authorization or switching,” the document stated.
Also, 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, insisting that all ATM systems must be interoperable.
The regulator stated 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. Applicants are required to submit corporate information, demonstrate operational capacity and provide evidence of partnership with banks responsible for cash provisioning.
The guidelines introduce new operational standards aimed at improving ATM reliability, security and consumer protection.
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 stocked with unfit banknotes.
The framework further mandates 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.
To strengthen fraud prevention, the CBN directed 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.
