By Our Correspondent
The Central Bank of Nigeria has unveiled new draft guidelines that will reshape how Automated Teller Machines are deployed and managed across the country. The new rules require banks and other card-issuing institutions to provide one ATM for every 5,000 active payment cards issued, a move aimed at improving access to cash and easing pressure on existing banking channels.
The apex bank explained that the policy is designed to address persistent challenges such as long queues at ATM points, frequent machine downtime, and the growing dependence on Point-of-Sale agents for cash withdrawals.
With the number of payment cards increasing rapidly in recent years, the CBN noted that ATM infrastructure has not kept pace, creating gaps in service delivery.
To allow financial institutions time to adjust, the CBN has set 2028 as the deadline for full compliance.
Implementation is expected to follow a phased approach, with banks gradually expanding their ATM networks in line with their active card base. The guidelines also encourage strategic placement of machines to ensure better coverage in both urban centres and underserved rural communities.
In addition to the deployment requirements, the new framework strengthens operational and security standards. Banks will be required to obtain regulatory approval before deploying, relocating, or removing ATMs, while stricter oversight will be applied to reduce downtime and improve machine reliability, safety, and accessibility.
Financial analysts believe the policy could lead to a significant expansion of ATM infrastructure nationwide if fully implemented. Although banks may incur higher costs in the short term, the Central Bank maintains that the long-term benefits, including improved customer experience and a more balanced cash distribution system, will positively impact the banking sector and the wider economy.
