The Central Bank of Nigeria has announced plans to introduce new regulations aimed at improving the efficiency of automated teller machines and strengthening access to cash across the banking system, amid concerns over frequent ATM downtime and uneven cash availability.
The proposed rules will require banks to align the number of debit cards issued to customers with the capacity of their ATM networks, as part of measures to address congestion, service failures and persistent cash shortages at ATM points nationwide. The apex bank said the move is intended to sanitise ATM operations and restore confidence in electronic payment channels, noting that prolonged ATM outages undermine the credibility of the financial system.
The disclosure was made at a recent banking industry forum, where the CBN said it was engaging stakeholders ahead of the rollout of the new policy, which is expected to be implemented before the end of the second quarter of 2026. According to the bank, issuing large volumes of debit cards without corresponding investment in ATM infrastructure has contributed to declining service quality and public frustration.
The planned regulations come against the backdrop of rising cash usage in the economy, with data showing that Nigeria ended 2025 with about N5.4 trillion in currency held outside the banking system. The CBN noted that the trend reflects a strong preference for cash transactions, despite ongoing efforts to promote digital payments, and highlights the need to improve the reliability of ATM services to support both cash and electronic transactions.
The apex bank reiterated that improving ATM performance is critical to strengthening confidence in the payments system, stressing that failures in cash access often push users back to cash hoarding and informal channels. It added that the new framework would complement existing cash management and electronic payment reforms already introduced in the banking sector.
The CBN said it remains committed to working with banks and other stakeholders to ensure that the new ATM rules improve service delivery, enhance customer experience and support broader financial inclusion objectives across the country.
