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The bid by the Central Bank of Nigeria (CBN) to authorise all banks to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours has gained the backing of the Federal Competition and Consumer Protection Commission (FCCPC), Nigeria’s top consumer protection agency, said on Monday.
The initiative represents a major move in addressing one of the most prevalent complaints by Nigeria’s bank customers, and has been described as “a timely and long-awaited correction to a persistent consumer challenge” by Tunji Bello, the FCCPC’s vice chairman and CEO
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“It is consistent with what the FCCPC has been advocating, given the number of complaints we receive about failed transactions,” Mr Bello said in a statement on Monday.
“We commend the CBN for this decisive step, which will ease the burden on consumers and rebuild trust in financial services,” he added.
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Last Thursday, the CBN issued draft guidelines on the operations of cash machines in Nigeria, where it ordered that banks must refund account holders for failed (not-on-us) transactions within 48 hours.
Refunds for failed transactions on the same bank’s ATM (on-us) will be processed instantly. Where instant reversal is impossible due to technical hitches, the banking industry watchdog said banks must complete a manual reversal within 24 hours.
Stakeholders have four weeks from that date to provide feedback and comments on the new rule.
The proposed directive follows years of public frustration over delayed reversals and failed transfers, often breeding discontent among account holders.
That, in a way, has also put paid to Nigeria’s push to deepen financial inclusion among its vast unbanked population, where the trend has raised concerns around the safety of funds and fuelled apathy for banking services.
According to the FCCPC, the agency’s Consumer Complaints Data Report for March to August 2025, revealed that the banking and fintech sectors recorded the highest number of consumer complaints nationwide.
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The report documented over 3,000 complaints in banking alone, with about N10 billion recovered for customers across 30 sectors.
The agency is pushing for a prompt adoption and enforcement of the regulations, hoping that an early implementation would succour consumers and improve accountability in the financial sector.
To ensure compliance, the commission said it would work with the CBN to monitor banks’ adherence to the 48-hour refund requirement and to enforce penalties for non-compliance. “Closer collaboration among regulators will lead to faster resolutions, prevent recurrence, and strengthen consumer confidence in Nigeria’s growing digital economy,” it added.
Under the proposed rules, customers with unresolved ATM or electronic transaction issues must report to their banks or the CBN. If the issue persists, they may escalate their complaints to the FCCPC
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