Nigeria Has Fewer Working ATMs Than in 2021, and the CBN Now Wants Banks to Build More

Nigerians are using ATMs more and have fewer working machines to use. About 22,600 ATMs were in service across the country in 2021, and by mid-2024 only 16,714 were still active, while the number of withdrawals and other ATM transactions kept rising. The Central Bank of Nigeria has now ordered banks to deploy many more.

What the CBN Now Requires

In a circular dated 13th March 2026, the CBN told card issuers to deploy at least one ATM for every 7,500 payment cards they issue. The target is phased: 30% compliance in 2026, 60% in 2027 and full compliance by 2028. The rule covers banks, other financial institutions and payment service providers that issue cards and run ATMs.

The same circular tightened what happens when a withdrawal fails. Reversals for transactions on the issuing bank's own machines must happen instantly, manual reversals from technical faults must be completed within 24 hours, and refunds on other banks' machines must be processed within 48 hours.

More Transactions, Fewer Machines

The usage is still there. ATM transaction volume reportedly rose 6.6% year on year to 438.59 million in the first quarter of 2026. Nigeria also has about 13 ATMs per 100,000 adults, against 37 in Egypt, going by IMF figures.

Part of the gap is filled by PoS agents. PoS transaction volume grew from under 100 million in 2016 to nearly 4 billion in 2022, while ATM deployment growth slowed sharply. Machines in rural areas are expensive to keep running because they need diesel generators, cash logistics and reliable networks, and the fees they earn rarely cover those costs.

What Customers Pay

Withdrawals from your own bank's ATM are free. Other banks' on-site machines charge ₦100 for withdrawals up to ₦20,000, and off-site machines can charge up to ₦600, while a PoS agent typically charges around ₦100 to ₦200 per withdrawal.

Why It Matters for Digital Payments

The ATM decline sits alongside a push to make cash less necessary. Elsewhere in Africa, Safaricom and Pesapal are bringing tap-to-pay and scan-to-pay to M-PESA, with a target of 500,000 outlets in a year. Nigeria is running both tracks at once: a mandate to expand cash access and a growing card and PoS economy that reduces how often people need it.

What to Watch Next

The first compliance mark is 30% by the end of 2026, so the next test is how many new machines banks actually deploy before the year closes, and whether failed transactions are reversed within the new deadlines.

Frequently Asked Questions

What Is the CBN ATM Rule?

Card issuers must deploy at least one ATM for every 7,500 payment cards they issue, with 30% compliance in 2026, 60% in 2027 and 100% in 2028.

How Many Working ATMs Does Nigeria Have?

16,714 active ATMs as of mid-2024, down from about 22,600 in 2021.

How Quickly Must Failed ATM Transactions Be Reversed?

Instantly on the issuing bank's own machines, within 24 hours for manual reversals from technical faults, and within 48 hours on other banks' machines.

How Much Does an ATM Withdrawal Cost?

Free at your own bank's ATM, ₦100 at another bank's on-site ATM for withdrawals up to ₦20,000, and up to ₦600 at an off-site machine.