CBN Sets Tough New ATM Rules: Banks Must Deploy One ATM for Every 5,000 Cards Issued

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The Central Bank of Nigeria (CBN) has rolled out new minimum standards for the deployment, operation, maintenance, and security of Automated Teller Machines (ATMs), signaling a major regulatory push to improve cash access and service delivery across the country.

Under the new directive, all card-issuing financial institutions are now required to deploy at least one ATM for every 5,000 payment cards issued. The regulation applies to deposit money banks and other licensed card issuers within Nigeria’s financial system.

The apex bank said the move is aimed at tackling chronic challenges associated with ATM services, including limited machine availability, frequent breakdowns, long queues, and security vulnerabilities—issues that have persisted despite Nigeria’s growing cashless and digital payments drive.

Beyond setting numerical deployment benchmarks, the new standards also impose stricter obligations on banks to ensure consistent uptime, prompt maintenance, adequate cash loading, and enhanced security for ATM locations. Financial institutions are expected to prioritise customer convenience while strengthening safeguards against fraud, vandalism, and other operational risks.

Analysts say the policy could force banks with large cardholder bases to significantly expand their ATM networks, particularly in high-traffic urban areas and underserved communities, thereby easing pressure on bank branches and improving overall access to cash.

The CBN warned that compliance with the new standards will be closely monitored, adding that appropriate regulatory sanctions may be applied to institutions that fail to meet the requirements.
The directive comes amid sustained public complaints over ATM shortages and poor service quality, and forms part of the central bank’s broader effort to strengthen Nigeria’s payments infrastructure while protecting financial consumers in an increasingly digital economy.