The Central Bank of Nigeria (CBN) is urging banks and independent ATM operators to optimize their distribution networks. A draft regulation unveiled in October 2025 outlines the authority’s efforts to enhance ATM availability in a nation where downtime and lengthy wait times have become common.
This initiative is also in response to a new rule that limits PoS daily transactions to ₦1.2 million ($823.32), along with various other restrictions.If this new directive is implemented, banks will be required to maintain one ATM for every 5,000 payment cards they distribute. Zenith Bank, with a customer base of 27.80 million cards and currently 2,142 ATM terminals, would need to grow its network to at least 5,561 ATMs by 2028.
As of March 2025, Nigeria had 320.05 million active accounts, and if each account were to receive a card, the country would need a total of 64,011 ATMs to meet compliance.Since PoS terminals gained traction in 2013, they have become the main cash access points for numerous Nigerians. By March 2025, there were 8.36 million registered PoS terminals (5.90 million actively in use), whereas the number of active ATMs decreased to 16,714 in the first half of 2024, down from 17,377 the prior year. With Nigeria having 14 ATMs per 100,000 adults, compared to Egypt’s 31, as reported by the International Monetary Fund (IMF), the new guidelines intend to rectify this situation through a phased compliance framework: 30% of the requisite ATMs must be in place by 2026, 60% by 2027, and full compliance by 2028.
These regulations pertain to deposit money banks, other financial entities, and independent ATM operators. The CBN noted that these standards have become crucial “to establish basic requirements for ATM deployment, operation, and maintenance, while improving access to ATM services in both urban and rural settings…”Additionally, the guidelines stipulate that 2% of all ATMs should be equipped with tactile features for visually impaired users, and that unsuccessful transactions should be refunded within 24 to 48 hours.ATMs must now be situated within a reasonable proximity of each other in both urban and rural environments, ensuring cash availability at all times.
To facilitate this, the CBN mandates that banks implement a real-time online monitoring system to oversee cash levels throughout their networks.The regulator has penalized nine banks ₦1.35 billion ($926,237) for failing to replenish their ATMs with cash. This forthcoming regulation follows the CBN’s PoS exclusivity rule—effective in April 2026—mandating over two million agents to select a single licensed operator.
Although this rule aims to combat fraud and refine oversight, it could lead to a reduction in the number of PoS terminals accessible to consumers. The new ATM guidelines could act as a balancing factor, driving banks to broaden their physical cash access points across the country.
Nonetheless, adherence to these rules will result in increased infrastructure and maintenance expenditures for banks, particularly in underserved regions.These enhanced costs are expected to be mitigated by newly adjusted cost structures, which raised ATM withdrawal fees in February.
The draft guidelines are currently available for public feedback over the next four weeks, but no matter the direction chosen by the apex bank, it is increasingly evident that it aims to transform cash access within the economy.