AfriPulse
The Central Bank of Nigeria (CBN) wants banks and independent ATM deployers to fix their distribution channel.
A draft guideline released in October 2025 shows how the regulator is pushing to improve ATM density in a country where downtime and long queues are routine. It also follows a new regulation that caps PoS daily transactions to ₦1.2 million ($823.32), among other restrictions.
If the new rule takes effect, banks must have one ATM for every 5,000 payment cards they issue. Zenith Bank, which has issued 27.80 million cards to its customers and currently has 2,142 ATM terminals, would need to expand its network to at least 5,561 ATMs by 2028.
Nigeria had 320.05 million active accounts as of March 2025, and if each one were to be issued a card, the country would need 64,011 ATMs to comply.
Total Active Bank Accounts (March 2025)
320,050,000
Current Active ATMs (H1 2024)
16,714
Required ATMs to meet CBN’s mandate
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The National Deployment Gap is
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Data based on NIBSS figures and CBN reports. The CBN’s mandate is one ATM for every 5,000 cards issued.
Since PoS terminals became mainstream in 2013, they’ve become the primary cash points for many Nigerians. By March 2025, there were 8.36 million registered PoS terminals (5.90 million active), while the number of active ATMs fell to 16,714 in the first half of 2024, from 17,377 the previous year.
Nigeria has 14 ATMs per 100,000 adults, compared to 31 in Egypt, according to the International Monetary Fund (IMF). The new guidelines aim to address this with a phased compliance schedule: 30% of the required ATMs must be deployed by 2026, 60% by 2027, and full compliance achieved by 2028.
The rules apply to deposit money banks, other financial institutions, and independent ATM deployers. The CBN said the rules have become necessary “to establish minimum standards for ATM deployment, operations, and maintenance, promote improved access to ATM services in urban and rural areas…”
The guideline also mandates that 2% of all ATMs be equipped with tactile features for visually impaired users and that failed transactions must be refunded within 24 to 48 hours.
ATMs must now be located within a reasonable distance from one another in urban and rural areas, with cash available at all times. To achieve this, the CBN requires banks to install a real-time online monitoring system to track cash levels across their networks.
The regulator fined nine banks ₦1.35 billion ($926,237) for not filling their ATMs with cash. This proposed regulation comes on the heels of the CBN’s PoS exclusivity rule—which takes effect in April 2026—requiring over two million agents to choose one licensed operator.
While this rule aims to reduce fraud and streamline oversight, it may shrink the number of PoS terminals available to users. The new ATM guideline could serve as a counterbalance, pushing banks to expand physical cash points nationwide.
However, for banks, compliance will mean higher infrastructure and maintenance costs, especially in underserved areas.
This increased cost should be offset by new cost structures, which increased ATM withdrawal fees in February. The draft guideline is currently open for public comments for the next four weeks, but regardless of what direction the apex bank takes, it is becoming clear that it intends to reshape access to cash in the economy.
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