(DDM) – The Central Bank of Nigeria has introduced new minimum standards governing the deployment, operation, maintenance, and security of Automated Teller Machines across the country.
The new directive is aimed at improving access to banking services, enhancing user safety, and strengthening the efficiency of electronic payment systems nationwide.
The policy was disclosed in a circular titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria.”
The circular was officially released by the apex bank on Thursday.
According to the CBN, the new guidelines replace all previous regulations and frameworks relating to ATM operations in Nigeria.
The bank stated that the revised rules are part of ongoing reforms to modernize Nigeria’s financial infrastructure.
Under the new framework, all card-issuing financial institutions are required to deploy a minimum of one ATM for every 5,000 payment cards issued.
The apex bank said this requirement is designed to reduce congestion, improve service delivery, and ensure equitable access to ATM services.
The CBN further announced that financial institutions have a three-year compliance window.
It explained that at least 30 per cent compliance is expected by the year 2026.
Full compliance, amounting to 100 per cent implementation, must be achieved by the year 2028.
The central bank emphasized that failure to meet the stipulated timelines may attract regulatory sanctions.
The guidelines also provide clear instructions on the physical location and safety of ATMs.
According to the CBN, all ATMs must be installed in secure locations that guarantee the safety of users.
The bank stressed the importance of protecting customers from theft, fraud, and physical harm while conducting transactions.
It further noted that transaction confidentiality must be ensured at all ATM locations.
The CBN directed that ATMs should not be installed outside buildings unless adequate safety measures are in place.
Such machines must be properly bolted to the floor to prevent theft, vandalism, or unauthorized removal.
The guidelines also mandate that ATM environments must be well-lit and monitored.
In addition, the central bank introduced stricter controls over ATM deployment processes.
It stated that all ATM deployment, redeployment, and decommissioning must receive prior written approval from the CBN.
This measure is intended to enhance regulatory oversight and ensure compliance with national banking standards.
The new rules also apply to Independent ATM Deployers.
The CBN stated that Independent ATM Deployers must obtain formal approval before commencing operations.
They are also required to meet all licensing conditions stipulated by the apex bank.
One of the key requirements includes providing evidence of a partnership with a commercial bank for cash supply.
The central bank noted that this requirement is necessary to ensure liquidity and uninterrupted service delivery.
The guidelines also emphasize routine maintenance and uptime monitoring of ATM machines.
Financial institutions are expected to ensure prompt fault resolution to minimize customer inconvenience.
The CBN reiterated its commitment to strengthening Nigeria’s digital payment ecosystem.
It noted that improved ATM availability is critical to financial inclusion and economic efficiency.
Industry stakeholders have welcomed the guidelines as a step toward improved customer experience.
However, some operators have expressed concerns about the cost implications of rapid ATM expansion.
Despite these concerns, the CBN maintained that the reforms are necessary for long-term system stability.
The apex bank urged financial institutions to begin immediate preparations for compliance.
The new guidelines are expected to reshape ATM operations across Nigeria over the next three years.
