CBN Orders Banks to Deploy One ATM for Every 5,000 Cards Issued by 2028

The Central Bank of Nigeria (CBN) has announced a new directive mandating commercial banks and independent ATM operators to increase the number of Automated Teller Machines (ATMs) across the country.

The new draft guideline, released in October 2025, seeks to close the wide gap in ATM access, improve service delivery, and reduce the long queues that have become common at cash points nationwide.

Under this policy, every bank in Nigeria must install one ATM for every 5,000 payment cards issued to customers. The CBN explained that this move will enhance financial inclusion and make cash withdrawals more accessible to citizens, especially in underserved areas.

Massive Expansion Required by Nigerian Banks

The new rule means banks will have to expand their ATM networks significantly. For instance, Zenith Bank, which has issued about 27.8 million cards and currently operates 2,142 ATMs, will need to install over 5,500 machines by 2028 to meet compliance standards.

According to official figures from the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria had over 320 million active bank accounts as of March 2025. To meet the CBN’s new ratio of one ATM per 5,000 cards, the country would need at least 64,000 functioning ATMs — far above the current number of 16,714 machines in operation.

This means Nigeria faces a national ATM deployment gap of about 47,000, a massive infrastructure challenge that will require billions of naira in new investments from the banking sector.

A Step Toward Better Access to Cash

CBN’s new regulation comes amid widespread complaints about poor ATM availability, frequent cash shortages, and long queues across major cities.

Currently, Nigeria has only 14 ATMs per 100,000 adults, compared to 31 in Egypt, based on data from the International Monetary Fund (IMF). The new CBN framework aims to bridge this gap and bring Nigeria closer to global standards.

The policy also introduces a phased compliance plan:

• 30% of required ATMs must be installed by 2026
  
• 60% by 2027, and
  
• Full compliance by 2028
  

The rule applies not only to commercial banks but also to microfinance banks, other financial institutions, and independent ATM deployers.

According to the apex bank, “The goal is to establish minimum standards for ATM deployment, operations, and maintenance to promote improved access to cash withdrawal services in both urban and rural areas.”

New Requirements for Accessibility and Transparency

Beyond increasing the number of machines, the CBN’s draft also introduces several consumer-friendly policies to protect customers and improve efficiency.

Banks are now required to:

• Ensure that 2% of all ATMs have tactile features for visually impaired users.
  
• Refund failed transactions within 24 to 48 hours without excuses.
  
• Maintain 24-hour cash availability and ensure ATMs are within a reasonable distance from one another.
  
• Deploy real-time online monitoring systems to track cash levels and machine status nationwide.
  

In addition, banks will face stricter penalties for service failures. Earlier this year, the CBN fined nine commercial banks ₦1.35 billion for failing to keep their ATMs stocked with cash, a clear signal that non-compliance will no longer be tolerated.

Impact on the Banking Sector and Customers

This new policy will undoubtedly increase operating costs for banks, especially those with branches in rural or semi-urban regions where power and network infrastructure remain unreliable.

Experts believe that to offset these new costs, banks may further adjust ATM withdrawal fees or introduce tiered service charges.

However, financial analysts argue that the long-term benefits — including better customer satisfaction, improved financial inclusion, and reduced dependency on PoS agents — outweigh the immediate financial burden on banks.

Since Point of Sale (PoS) devices became mainstream in 2013, they have gradually replaced ATMs as the primary source of cash access for many Nigerians. As of March 2025, there were over 8.36 million registered PoS terminals, with 5.9 million active, while the number of ATMs declined from 17,377 in 2023 to 16,714 in 2024.

The CBN’s initiative, therefore, represents an effort to rebalance the financial ecosystem, ensuring that citizens have reliable access to physical cash without excessive dependence on third-party agents.

PoS Regulation and the Push for Financial Reform

This move by the CBN follows a new PoS regulation introduced earlier in 2025 that limits daily transactions to ₦1.2 million and requires over two million PoS agents to align under a single licensed operator by April 2026.

While the PoS exclusivity rule aims to reduce fraud and strengthen oversight, it could also lead to a reduction in the number of available PoS terminals. The ATM expansion policy, therefore, serves as a counterbalance to maintain access to cash across Nigeria.

CBN’s Broader Financial Inclusion Agenda

The Central Bank has reiterated that this guideline is part of its financial inclusion strategy, designed to ensure that Nigerians — regardless of location or income — have equal access to essential financial services.

By improving ATM availability, enforcing refund timelines, and mandating accessibility for persons with disabilities, the apex bank hopes to create a more inclusive, transparent, and efficient financial system.

Analysts say the policy could also boost digital banking engagement, increase card issuance, and create new business opportunities for ATM manufacturers and maintenance firms operating within Nigeria.

Public Reactions and Next Steps

The CBN’s draft guideline is currently open for public review and stakeholder feedback for four weeks before final implementation. Industry experts, fintech innovators, and consumer advocacy groups are expected to share their recommendations on deployment logistics, cost-sharing models, and rural coverage strategies.

Regardless of minor adjustments, it is clear that Nigeria’s banking landscape is heading toward a more regulated, accessible, and customer-centered framework. By 2028, Nigerians could experience shorter queues, fewer failed transactions, and wider availability of cash — signaling a new era in the country’s financial infrastructure.