CBN Plans New ATM Rules as Nigerians Hold N5.4trn Outside Banks

The Central Bank of Nigeria (CBN) has announced plans to introduce new regulations that will require commercial banks to align debit card issuance with their available Automated Teller Machine (ATM) capacity, amid growing concerns over cash hoarding and poor access to banking services.

According to the apex bank, Nigerians currently keep about N5.4 trillion in cash outside the banking system, a development it says undermines financial inclusion, monetary policy effectiveness and the stability of the financial sector.

The CBN said the proposed rules are aimed at addressing persistent complaints about ATM shortages, frequent downtime and failed transactions, especially during peak periods. Under the new framework, banks will be expected to demonstrate sufficient ATM infrastructure before issuing additional debit cards to customers.

The bank also disclosed that it is working with financial institutions to significantly reduce ATM downtime and improve service reliability nationwide, noting that access to cash remains critical despite the push for electronic payments.

The CBN stressed that improving ATM availability and efficiency would encourage more Nigerians to keep their money within the banking system, reduce excessive cash circulation, and strengthen confidence in formal financial channels.

It added that further details on the new guidelines would be communicated to banks and the public in due course.