The Central Bank of Nigeria has introduced a new regulatory standard requiring banks and card issuers to deploy at least one Automated Teller Machine (ATM) for every 5,000 payment cards issued as part of efforts to improve cash access and strengthen Nigeria’s payments infrastructure.
The policy, which applies to deposit money banks and other licensed card issuers, is aimed at addressing persistent complaints around cash shortages, long queues at ATMs and declining reliability of electronic banking channels.
Under the new framework, financial institutions will be required to align card issuance growth with corresponding investments in physical ATM infrastructure.
According to regulatory guidance, the ATM-to-card ratio will be implemented in phases over a three-year period, allowing banks time to adjust their infrastructure plans.
Compliance thresholds are expected to rise gradually, with partial implementation in the initial phase and full compliance by the end of the rollout period.
The CBN said the measure is designed to curb the practice of aggressive card issuance without adequate support infrastructure, a trend that has contributed to congestion at existing ATMs and reduced customer confidence in banking channels.
By mandating a minimum deployment ratio, the apex bank aims to ensure that growth in electronic payment instruments does not outpace access to physical cash.
Industry analysts note that the policy could trigger significant capital expenditure across the banking sector, as lenders expand ATM networks, enter shared-service arrangements, or deepen partnerships with independent ATM operators.
While the move may increase short-term operating costs, it is expected to improve service quality and reduce transaction friction for customers over time.
The new requirement also has implications for banks with large retail customer bases, particularly those that have relied heavily on digital channels without proportional investment in ATM coverage.
Institutions that already maintain extensive ATM footprints are expected to face lower adjustment pressure compared with peers that have prioritised card issuance over infrastructure expansion.
Beyond infrastructure, the policy is aligned with broader reforms in Nigeria’s payment system, including tighter standards for ATM uptime, security, refund timelines for failed transactions, and regulatory oversight of deployment and decommissioning.
The CBN has previously indicated that ATM reliability remains a key pillar of financial inclusion, especially in semi-urban and rural areas where alternative cash access channels are limited.
Market participants expect the ATM-to-card ratio policy to reshape competitive dynamics in the banking sector, accelerate collaboration on shared ATM networks, and potentially create new opportunities for third-party ATM service providers.
As implementation begins, banks are expected to reassess their card issuance strategies and infrastructure investment plans to ensure compliance with the new regulatory threshold while maintaining profitability and service delivery standards.
