Business
CBN to Banks: Refund failed ATM withdrawals within 48 hours
The Central Bank of Nigeria (CBN) has rolled out a comprehensive order requiring commercial banks and financial entities to reimburse clients for unsuccessful ATM withdrawals within 48 hours, aiming to bolster customer safeguards and rebuild trust in financial services.
This instruction appears in a fresh draft paper called “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria,” released on Saturday.
READ ALSO: New CBN Limit: PoS agents can’t withdraw past N1.2m daily
Musa I. Jimoh, from the Payments System Policy Department, signed the draft, which was sent to banks, payment providers, card networks, and standalone ATM managers, seeking input by October 31, 2025.
The plan demands immediate reversal of botched “on-us” deals—those at a customer’s own bank’s machines. If tech glitches block quick fixes, manual payouts must occur within 24 hours.
For “not-on-us” cases at rival banks’ ATMs, full refunds are due in 48 hours.
“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.
Banks and operators must install tech for automatic fixes on incomplete or failed deals, sparing users from lodging formal gripes. Any held funds from botched payouts need prompt reconciliation and return.
The central bank highlighted that this tackles ongoing issues like delayed reimbursements, subpar support, and user dissatisfaction, while updating payment networks and matching international norms.
The rules will also revamp ATM placement and oversight across the country. Banks and card providers must ensure one machine per 5,000 active cards, with rollout goals of 30% by 2026, 60% by 2027, and 100% by 2028.
All ATM additions, moves, or shutdowns require CBN greenlight in advance.
For safety and ease, machines need skimmer-proof tech, video monitoring, and placement in bright or sheltered spots. They must meet Payment Card Industry security rules, keep transaction records, and show active support contacts.
No less than 2% of ATMs should have features for the sight-impaired.
Additionally, ATMs must release money prior to card return, permit no-cost PIN updates, print receipts for all deals except checks, show fees upfront, and only output crisp notes. Emergency power is mandatory to avoid blackouts.
Outages are limited to 72 hours straight; beyond that, operators must announce causes and projected fixes publicly.
The CBN will monitor adherence via regular checks, site visits, and required monthly reports on ATM sites and counts. Non-compliant entities face penalties, though specifics weren’t detailed.
The bank explained the changes stem from rising failed deals, online threats, and service declines, stating “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”
Industry players can offer suggestions before the guidelines are finalized, with rollout slated before year-end.
“When lives are lost, and communities are destroyed, governance itself is put on trial. No amount of rhetoric can silence the verdict that comes from the suffering of the people.”
These were the exact words of Atiku Abubakar, former Vice President with which he chastised President Bola on Friday over the latter’s claim that the escalating wave of insecurity and killings in Nigeria were aimed at getting him out of power.
Tinubu, while speaking to members of the Inter-party Advisory Council (IAC), on Wednesday, at the State House, had told his audience that the move was to oust him out of power, adding however that he was not afraid, as he remained a “stubborn politician.”
Hear him: “You are playing into the hands of agents, including my own enemies, who want to use insecurity to get rid of me. I’m a very stubborn politician. I just refuse to go. And I will campaign for my second term.”
But in a quick riposte Atiku, presidential candidate of the Peoples Democratic Party in the 2019 and 2023 presidential elections, clapped back at the President, describing his apparent reduction of the import of the development as “troubling.”
Palpably incensed by the President’s interpretation of the situation in the country, Atiku riposted: “It is not political opponents who will judge this administration; it is the blood of innocent Nigerians being shed daily across our land. That blood cries out louder than any declaration of political resolve.
“It is horrifying that the memories of innocent citizens slain due to the failure of the government to provide adequate security would be so casually reduced to political rhetoric.
“It is disturbing that such a heinous incident has yet to attract the empathy or acknowledgement it deserves from the highest levels of government, while the loss of lives is instead framed as a political game.
“No amount of deflection or intimidation can rewrite the lived reality of Nigerians. Ultimately, the people will decide, and they will do so based on the evidence before them. At a time like this, Nigerians do not need bravado; they need protection. They do not need declarations of staying power; they need proof of leadership.”
Mr. Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has forecast that Nigerian states may collect over N4 trillion yearly beginning in 2026 following the implementation of revised Value Added Tax regulations.
During Tuesday’s presentation of the BudgIT State of States 2025 Report in Abuja, where he delivered the primary address, Oyedele shared this projection.
The occasion also commemorated the program’s tenth anniversary.
“With VAT reforms kicking in from 2026, states’ share will rise to 55 per cent. That could amount to over N4 tn in 2026. The question is: will this money be spent, or will it be invested?” he said.
READ ALSO: Atiku toTinubu: You’re not only incompetent, you’re insensitive *Condemns ‘private’ Paris trip
The fiscal reform specialist observed that despite recent policy changes more than doubling Federation Account Allocation Committee distributions—from N5.4 trillion in 2023 to N11.4 trillion in 2024—most citizens have experienced minimal tangible benefits.
He noted that while government revenues have increased substantially, household purchasing power continues declining.
“States are receiving more money than ever before. But there is a paradox: while governments have more naira, ordinary Nigerians have less disposable income in their pockets,” he said, encouraging state administrators to direct additional funds toward initiatives that meaningfully enhance quality of life.
The BudgIT analysis revealed that twenty-one states continue depending on federal transfers for more than 70 percent of their income, which Oyedele characterized as concerning.
Nevertheless, he referenced positive developments, citing Enugu’s 381 percent increase in internally generated revenue alongside Bayelsa’s 174 percent improvement.
According to him, upcoming tax legislation—which assigns complete electronic money transfer levy proceeds to states and removes taxation from state government bonds—will help lower borrowing expenses and generate financial flexibility.
“This is a unique opportunity for states to build resilience, close existing tax gaps, and invest in infrastructure,” he stressed.
His remarks also addressed the disconnect between expenditure levels and actual results. Oyedele recognized that capital spending had exceeded recurrent costs for the first time in years.
However, he cautioned that execution in essential sectors remained inadequate.
“States implemented only two-thirds of their education budgets, spending less than N7,000 per citizen. In health, implementation was even lower, at just N3,500 per citizen,” he observed.
Regarding indebtedness, he mentioned a N2 trillion decrease in domestic liabilities and a $200 million reduction in external borrowing, with thirty-one states reducing their domestic debt levels.
Despite this, states maintain outstanding arrears exceeding N1.2 trillion owed to retirees, suppliers, and employees.
“Borrowing is not the problem; unproductive application of debt is,” he cautioned.
The 2025 performance rankings placed Anambra first, succeeded by Lagos, Kwara, Abia, and Edo. Cross River experienced a sharp decline from fifth position in 2024 to twenty-ninth in 2025, prompting questions about administrative decisions.
Oyedele encouraged state leadership to capitalize on forthcoming reforms to progress beyond mere survival toward achieving widespread economic well-being.
Additionally, Dr. Muhammad Abdullahi, the Central Bank of Nigeria’s Deputy Governor overseeing Economic Policy, urged states to establish fiscal responsibility and openness as revenue increases under current reforms.
He characterized the BudgIT assessment as an annual benchmark that has “distilled hard fiscal truths, benchmarked performance, and re-centred conversations on capital investment, social outcomes, and fiscal credibility.”
He acknowledged that while 2024 and 2025 reforms expanded revenues and elevated capital expenditure above recurring costs, states must avoid reverting to overhead-dominated budgets.
“The challenge is to lock in this fiscal discipline permanently,” he said.
The CBN official recommended that states digitize revenue collection systems, complete Treasury Single Account implementation, and enhance capital planning processes.
He further advocated for improved execution rates in education and health allocations, demanding implementation exceed 80 percent.
Abdullahi cautioned that subnational entities face significant foreign currency vulnerability. He revealed that the CBN is creating financial instruments to assist them with hedging exposure and revenue optimization.
Examining the wider economic landscape, Abdullahi explained that Nigeria inherited substantial imbalances, including multiple exchange rates, excessive deficit financing through Ways and Means, and depleting reserves.
The central bank’s strategy involved returning to conventional monetary policy, normalizing currency markets, and rebuilding confidence.
He concluded that states prioritizing discipline and capital investment over simply depending on increased revenues would accomplish lasting transformation.
Representing the Nigerian Governors’ Forum Director-General, Dr. Abdulateef Shittu, Razaq Fatai—Head of Economic Intelligence—described the State of States report as instrumental in guiding administration and advancing fiscal responsibility nationwide.
He clarified that the NGF has functioned as a technical collaborator in developing the report throughout the past decade, ensuring governors utilize findings for enhanced policy decisions.
“The essence of State of States is to help guide governance and ensure that governors at different levels take the information provided and make sure it reaches their people,” he said.
Fatai mentioned that programs like the State Fiscal Transparency, Accountability and Sustainability initiative have reinforced budget reliability and debt openness, while the ongoing State Action on Business Enabling Reforms program encourages states to enhance business conditions.
He stated that the NGF will maintain its role facilitating collaborative learning and cooperation to establish transparency and accountability at subnational levels.
BudgIT Co-founder and Global Director Oluseun Onigbinde earlier remarked that the State of States report functions as a reflection of subnational government decisions.
Onigbinde observed that what started as an effort to track public spending has developed into an accountability instrument embraced by both administrators and citizens.
“This report began with a simple belief, that every kobo meant for citizens should be traceable, justified, and used to improve lives,” he said.
He noted that transparency has become advantageous among states, with more governors publishing budgets and citizens utilizing data for accountability demands.
Nevertheless, Onigbinde cautioned that Nigeria faces critical challenges, with increasing inflation, mounting debt, and excessive dependence on federal allocations preventing many states from developing sustainable local economies.
He encouraged states to prioritize education, healthcare, and infrastructure while using transparency to build public confidence and attract investment.
Plans have been unveiled to significantly increase the capacity of the Dangote Refinery, more than doubling its current output from 650,000 to 1.4 million barrels daily.
Aliko Dangote, who heads the Dangote Group, shared these development plans during a media engagement held in Lagos on Sunday, with First Bank’s Chairman, Femi Otedola, present at the event.
READ ALSO: Dangote Refinery alleges marketers demand ₦1.5trn subsidy
The expansion is intended to position the facility as the world’s largest refinery, exceeding the capacity of India’s Jamnagar facility.
Construction activities for this ambitious project are set to commence immediately, according to the announcement.
The project will require approximately 65,000 construction workers, with Nigerian citizens comprising 85 percent of this workforce.
Additional improvements include increasing the facility’s electricity generation capability from 500 megawatts to 1,000 megawatts.
The refinery will also upgrade its fuel production standards to Euro 6 specifications, representing an improvement from the current Euro 5 level.
Plans are underway to offer the refinery’s shares publicly through the stock exchange in 2026, enabling Nigerian citizens to acquire ownership stakes.
Dangote expressed gratitude to President Bola Tinubu for governmental backing of the initiative.
The complete expansion timeline is projected at three years.
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