The Bank Customers Association of Nigeria (BCAN) has thrown its weight behind the Central Bank of Nigeria (CBN) over the newly proposed 24 to 48-hour refund policy for failed Automated Teller Machine (ATM) transactions. The association said the policy, if implemented, will reduce the financial stress faced by millions of Nigerians who experience delays in getting their money back after failed ATM withdrawals.
The President of BCAN, Dr. Uju Ogubunka, in an interview with journalists in Lagos, said the move by the apex bank shows strong concern for ordinary bank customers who depend on ATMs for daily cash transactions. He said many people suffer hardship when their money gets trapped in the system, and refunds take several days or weeks.
Dr. Ogubunka, who is also a former Registrar of the Chartered Institute of Bankers of Nigeria (CIBN), described the CBN’s proposed refund period as both “reasonable and long overdue.” He said that customers deserve quick access to their funds after a failed transaction, especially in a period of high living costs.
“If I go to an ATM to withdraw money, and it’s not paid, and then you don’t refund me the money within one day, you are strangling me, because that may even be the last money I have in my account,” he said. “Twenty-four hours is ideal, and 48 hours is even too long. No customer wants their money hanging for days, especially when they have urgent needs.”
The new policy forms part of the CBN’s draft guidelines on ATM operations, which propose stricter rules for transaction processing, reconciliation, and refunds. The draft mandates instant reversals for “on-us” transactions—those carried out within the same bank—manual reversals within 24 hours, and refunds within 48 hours for transactions involving two different banks.
It also includes several new operational standards for banks and ATM deployers. These include the use of anti-skimming technology, camera surveillance, and improved accessibility features to ensure safety and reliability for users. The CBN also proposed that no ATM should remain out of service for more than 72 consecutive hours, and banks must display a functional helpdesk number at all ATM terminals.
Dr. Ogubunka said the new downtime rule was a good step towards improving service quality. According to him, the current situation where some ATMs remain broken for weeks or even months is unacceptable.
“Right now, when an ATM goes bad, it could take weeks or months before they can take a look at it. This new rule will make banks face the issue squarely, instead of abandoning the ATM when it gets bad,” he said. He added that the policy will also encourage the training of more local technicians who can repair faulty ATMs promptly.
The BCAN President, however, admitted that commercial banks might not easily accept the policy, as it would require them to improve their internal systems and shorten reconciliation timelines. Still, he insisted that the new CBN rule was in the best interest of customers and should be fully supported.
On the issue of excessive bank charges, Dr. Ogubunka said BCAN had already written to the CBN to protest the practice, but the association was yet to receive any response. “We have written to CBN. There hasn’t been a response. We have also sent a reminder to CBN to see whether they can give us at least a response. But so far, there hasn’t been any,” he said.
He explained that BCAN’s letter urged the CBN to enforce existing rules on bank charges and prevent banks from billing customers above the approved rates. “There is already a guide to bank charges. So, if the regulation says charge ₦1, then don’t go and charge ₦2 or ₦3. Stick to what is approved,” he added.
Dr. Ogubunka also spoke on the growing competition between traditional banks and financial technology (fintech) firms, many of which now offer zero transfer charges to attract customers. He said while fintech companies are free to make such offers, commercial banks should at least comply strictly with the CBN-approved limits for service fees.
“Even if they can’t give free services, they should stay within what the guidelines allow. Some fintechs and banks have removed certain charges to encourage customers, and that’s fine. But what matters most is compliance with existing rules,” he said.
The new draft guideline from the Central Bank of Nigeria is one of several recent efforts aimed at promoting consumer protection, improving digital payment systems, and building trust in Nigeria’s financial sector. The policy, once approved, will likely have a direct impact on millions of bank users who depend on ATMs and electronic channels for their daily transactions.
As Nigeria’s banking system becomes increasingly digital, the move by the CBN signals a stronger focus on customer satisfaction, financial inclusion, and transparency in electronic payment services.
