Banking
CBN Directs Banks to Increase ATM Terminals to Ease Reliance on PoS
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has introduced new minimum standards for Automated Teller Machines (ATMs) across the country as part of efforts to make more cash points available and reduce the growing reliance on Point-of-Sale (PoS) terminals.
The move, contained in a draft circular titled Exposure of the Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria, build up on previous regulations and is aimed at improving accessibility, security, and consumer protection in ATM operations.
The directive comes amid a sharp increase in the use of PoS terminals across Nigeria. As of March 2025, there were about 8.3 million registered PoS machines nationwide, while deployed terminals stood at 5.56 million in December 2024, a 127 per cent rise from the previous year.
The surge in PoS usage has turned merchant-based withdrawals into a major part of everyday cash transactions, but it has also come with a lot of worries.
According to the new guidelines, all card-issuing institutions must deploy at least one ATM for every 5,000 payment cards issued. The implementation will be gradual, with 30 per cent of the target to be achieved by 2026 and full compliance by 2028.
By increasing the number of ATMs nationwide, the CBN hopes to ease pressure on the PoS network, expand banking touchpoints, and strengthen confidence in the country’s payment infrastructure.
The CBN’s latest policy seeks to address this imbalance by ensuring that banks deploy more ATMs to meet public demand for easy and secure access to cash.
ATMs must be located in safe and secure environments that guarantee user confidentiality, and those installed outside buildings must be bolted to the floor.
Any deployment, relocation, or removal of ATMs will require prior written approval from the CBN.
Independent ATM Deployers (IADs) must also obtain CBN approval, fulfill licensing requirements, and show evidence of partnership with a bank responsible for cash supply.
To strengthen consumer protection, the CBN ordered that failed “on-us” transactions, those carried out on a customer’s own bank ATM, must be reversed instantly, or within 24 hours if technical issues occur.
For “not-on-us” transactions conducted on other banks’ ATMs, refunds must be completed within 48 hours.
The guidelines also mandate automatic refund mechanisms that initiate reversals without the customer or issuing bank having to raise a complaint.
The new framework also places emphasis on security. All ATMs must have cameras that record persons and activities such as card insertion and cash dispensing but must not record customer keystrokes.
They must also be equipped with anti-skimming devices to prevent card fraud. ATM encryption keys must be changed annually and cannot be used for multiple machines, while customers are allowed to change their PINs free of charge.
Furthermore, the apex bank noted that all deployers and acquirers must comply with the Payment Card Industry Data Security Standards (PCI DSS) to ensure data safety and transaction integrity.
Operationally, ATMs must remain functional with downtime not exceeding 72 consecutive hours.
The CBN also noted that where this is unavoidable, customers must be informed.
Banks are also required to ensure that cash is always available in their ATMs, and even where non-bank deployers are involved, the partner bank remains fully responsible for cash provisioning.
Also, each ATM must clearly display customer service contacts, charges, and fees, and provide receipts for all transactions except balance enquiries.
To enforce compliance, the CBN said it will conduct regular audits and on-site inspections to verify service quality, cash availability, and adherence to the guidelines.
All institutions must also submit monthly reports on new ATM deployments and related activities no later than the fifth day of the following month. Defaulters will face penalties and other regulatory sanctions.
The apex bank said the new measures are designed to guide ATM deployers on density requirements, enhance consumer protection, and improve access to cash through secure and reliable channels.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has reaffirmed Mr Kamaldeen Adekilekun as the substantive Chairman of Living Trust Mortgage Bank Plc, easing recent uncertainty about the bank’s leadership.
In an official letter dated March 27, 2026, addressed to the Osun State Government, the banking sector regulator stated that Mr Adekilekun’s appointment remains valid and binding.
The CBN explained that once board nominations and appointments are approved by the regulator, they are tenured and guided by the Code of Corporate Governance for Primary Mortgage Banks in Nigeria, adding that such appointments cannot be withdrawn arbitrarily without clear regulatory grounds.
The CBN noted that its earlier communication (reference number OFI/DOL/CON/PLI/001/213) highlighted that the appointment was tenured in line with Sections 2.4.5 and 2.4.6 of the Code.
The apex bank also stated that there was no regulatory breach of relevant provisions of BOFIA 2020 or any CBN regulation that would disqualify him or prevent him from completing his term.
Rejecting the request for his removal, the CBN directed that the current board structure be maintained, stating, “Based on the foregoing, we therefore decline your request to withdraw Dr Adekilekun’s appointment.”
The development followed an earlier request seeking the withdrawal of the chairman’s appointment. The CBN said it had previously communicated the same position in a letter dated January 19, 2026.
The development reaffirms the central bank’s commitment to regulatory discipline, corporate governance, and institutional stability in Nigeria’s financial sector.
The clarification is expected to bring confidence to stakeholders, investors, and customers of Living Trust Mortgage Bank as operations continue under the existing leadership.
Incorporated on March 9, 1993, the bank converted from a Private Limited Liability Company to a Public Limited Liability Company on January 25, 2013 and subsequently listed on the Nigerian Exchange (NGX) on December 11, 2013, where its shares are being publicly traded.
By Adedapo Adesanya
Nigerian business-banking unicorn, Moniepoint, is eyeing a considerable foothold in East Africa as it completed the acquisition of a 78 per cent stake in Kenya’s Sumac Microfinance Bank.
The deal was finalised on Thursday and provides Moniepoint with a deposit-taking licence, an essential requirement for its credit-led expansion strategy.
The acquisition of Sumac allows Moniepoint to bypass the Central Bank of Kenya’s (CBK) policy to halt new licences to new foreign players. It will also ease worries after its move to buy payments firm Kopo Kopo failed.
By securing a majority stake in the 20-year-old institution, Moniepoint gains the regulatory infrastructure needed to deploy its high-velocity lending model to Kenya’s small and medium -sized enterprises (SMEs).
Sumac is a tier-three lender, and with its existing branch network and regulatory standing, the lender offers Moniepoint one of the ways to scale in a region increasingly shaped by digital-first credit.
The move also signals the company’s ambition to build a cross-border ecosystem that captures the entire merchant value chain, rather than solely on transaction fees.
Moniepoint’s entry into Kenya follows its acquisition of Orda, a cloud-based restaurant software provider for an undisclosed sum earlier this week, in a push to tap into the billion-dollar restaurants’ economy.
The company plans to export its business-in-a-box strategy, which integrates inventory management, payroll, and working capital by combining Orda’s vertical Software as a Service (SaaS) capabilities with Sumac’s banking infrastructure.
Orda will be rebranded Moniebook for Restaurants and integrated into Moniebook, Moniepoint’s business management platform. Orda will continue to operate as a standalone business until the full integration is completed in the coming months.
Orda currently operates in Nigeria and Kenya, but the acquisition only covers its Nigerian operations. However, with its presence in Kenya, it may set the tone for the acquisition of that subsidiary.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the central bank would now focus on a five-point policy agenda aimed at consolidating recent macroeconomic gains and steering the country toward sustained stability.
Mr Cardoso, while speaking at the 2026 Monetary Policy Forum held in Abuja on Thursday, set out the lender’s next phase of reforms anchored on inflation control, exchange rate stability, stronger reserves, deeper financial markets, and improved policy effectiveness.
The forum, themed Strengthening Nigeria’s Macroeconomic Stability Through Effective Monetary Policy: The Roles of Critical Stakeholders, brought together fiscal authorities, financial institutions, private sector players, and development partners.
He said the CBN will be positioning its five-point agenda as the cornerstone of the next phase of economic management.
Mr Cardoso said while recent reforms had delivered measurable improvements across key indicators, the focus had now shifted to consolidation.
He identified the five priorities as anchoring inflation firmly on a downward path to single-digit levels, sustaining exchange rate stability, strengthening external reserves through organic inflows, deepening interbank market development, and enhancing the transmission of monetary policy.
According to Mr Cardoso, the priorities reflect a deliberate strategy to entrench stability and improve the efficiency of the monetary framework. “The journey is far from complete. Our next phase is focused on consolidation,” Cardoso said, stressing that maintaining discipline and consistency would be critical to achieving durable outcomes.
He noted that the bank’s tightening measures and foreign exchange reforms had already begun to yield results, with inflation moderating, reserves strengthening, and market confidence improving.
However, he cautioned that sustaining these gains would require strong coordination between monetary and fiscal authorities.
Mr Cardoso emphasised that macroeconomic stability could not be achieved in isolation, describing it as a shared responsibility among policymakers, financial institutions, and the broader economic system.
He said disciplined fiscal operations, aligned policy actions, and continuous stakeholder engagement would be essential in delivering on the Bank’s objectives.
The CBN governor also highlighted the importance of deepening the interbank market to improve liquidity distribution and enhance the effectiveness of policy signals across the financial system.
He added that strengthening monetary policy transmission mechanisms would ensure that policy decisions translate more efficiently into real sector outcomes, including price stability and economic growth.
On external buffers, Mr Cardoso said the bank would continue to prioritise reserve accretion through sustainable sources, including improved foreign exchange inflows and enhanced market confidence. He explained that stronger reserves would provide a critical cushion against external shocks and support exchange rate stability.
The CBN chief further stressed that the success of the consolidation phase would depend on sustained collaboration across institutions.
He reaffirmed the apex bank’s commitment to orthodox monetary policy, transparency, and institutional credibility, noting that the reforms undertaken so far were necessary to correct past distortions and lay the foundation for long-term economic resilience.
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