In a development set to reshape the nation’s retail banking experience, the Bank Customers Association of Nigeria (BCAN) has thrown its full weight behind the Central Bank of Nigeria (CBN)’s faster ATM refund policy, which mandates banks to process failed Automated Teller Machine (ATM) transaction refunds within 24 to 48 hours.
The apex bank’s proposed policy is part of a new draft guideline on the operation of ATMs in Nigeria, aimed at enforcing stricter compliance standards for reconciliation, refund timelines, and machine uptime.
The move signals a decisive effort by the CBN to tackle one of the most frustrating issues faced by millions of bank customers — delayed refunds after failed ATM transactions.
Customers applaud CBN’s faster ATM refund policy
The President of BCAN, Dr. Uju Ogubunka, expressed optimism that the new CBN faster ATM refund policy would significantly ease financial stress for ordinary Nigerians.
Speaking in an interview, he stated that the 24-hour reversal window for “on-us” transactions — and 48 hours for “not-on-us” transactions — was both reasonable and overdue.
“If I go to an ATM to withdraw money, and it’s not paid, and you don’t refund me the money within one day, you are strangling me,” Ogubunka said.
“That may even be the last money I have in my account. So, 24 hours is ideal, and even 48 hours for interbank transactions is fair.”
He further explained that CBN’s faster ATM refund policy demonstrates empathy toward customers and encourages accountability within the banking system.
However, he acknowledged that commercial banks might resist the move, citing operational and interbank reconciliation challenges.
“No customer would want their money to hang longer than necessary,” he added.
“It makes sense, and we will support the CBN’s position.”
CBN pushes for improved ATM uptime and security
Beyond refund timelines, the proposed guideline under the CBN’s faster ATM refund policy framework also addresses long-standing complaints about poor ATM service delivery.
According to the document, banks and other ATM deployers must ensure that machine downtime — caused by technical faults — does not exceed 72 consecutive hours.
Additionally, the new rules mandate banks to display helpdesk contacts on each ATM terminal, maintain anti-skimming devices, and implement robust surveillance systems to enhance customer safety.
Ogubunka, however, noted that the success of the 72-hour downtime rule would depend on the capacity of banks to maintain and repair faulty machines quickly.
“If you give 72 hours for a downtime ATM to be brought back to life, it means you are putting banks under pressure to act swiftly,” he said. “That’s a good thing because, currently, some ATMs stay bad for weeks or even months.”
He called for the training of more local technicians to handle ATM repairs efficiently, adding that consistent enforcement of CBN’s faster ATM refund policy would discourage negligence and restore customer confidence in self-service banking.
Addressing excessive bank charges
BCAN also used the opportunity to update customers on its ongoing advocacy against excessive bank charges.
Ogubunka revealed that the association had written to the CBN, urging the regulator to enforce compliance with existing bank charge guidelines.
“We have written and even sent a reminder to the CBN,” he explained.
“We believe that excess charges are avoidable, especially since there are clear regulatory frameworks guiding what banks should deduct.”
The BCAN president argued that while some fintech firms have introduced zero-transfer-charge models, traditional banks should at least adhere strictly to approved rates rather than inflating fees.
“If the guideline says charge one naira, don’t charge three. Stay within the rule,” he said.
“Banks offering free services are simply trying to attract customers, and that’s fine. But the key is following what the CBN has approved.”
Experts see new policy as customer-centric reform
Financial analysts say the CBN’s faster ATM refund policy is in line with global best practices and could improve trust in Nigeria’s digital banking ecosystem.
By setting clear deadlines for refund processing and system maintenance, the apex bank hopes to protect consumer rights while pushing financial institutions to upgrade their technology infrastructure.
A Lagos-based fintech consultant, Tunde Adebayo, said the new rule could improve customer satisfaction scores and reduce disputes related to failed transactions.
“This is a progressive step,” Adebayo noted.
“It will force banks to improve their reconciliation systems, invest in uptime monitoring, and enhance customer service turnaround times.”
He added that consistent enforcement will be critical, as past policies have often been undermined by weak implementation or slow penalties for defaulting institutions.
CBN’s faster ATM refund policy to deepen trust in digital banking
With Nigeria’s growing shift toward electronic transactions, from mobile transfers to POS payments, ensuring that failed transactions are resolved swiftly is essential.
Analysts believe that once fully implemented, the CBN’s faster ATM refund policy could become a model for other areas of financial service regulation — including online transfers and card disputes.
The policy aligns with the CBN’s broader agenda to make the nation’s payment ecosystem safer, faster, and more transparent.
As Ogubunka and other advocates have emphasized, it also reflects a more empathetic approach to banking regulation — one that acknowledges the everyday struggles of consumers navigating Nigeria’s cash-light economy.
For now, both the regulator and stakeholders appear aligned on one thing: the era of waiting days or weeks to recover money lost to failed ATM withdrawals is coming to an end.
