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Policy Aims to Improve Cash Access, Restore Confidence in Nigeria’s Payment System
The Central Bank of Nigeria (CBN) has announced new policy-thrusts to sanitize debit card issuance and improve ATM operations nationwide. This initiative responds to the persistent cash access challenges faced by Nigerian bank customers.
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The proposed policy was disclosed by CBN Governor, Mr Yemi Cardoso, through his Special Adviser, Mr Fatai Karim, at the 2026 Committee of Heads of Bank Operations Conference, held on Friday.
Aligning Debit Card Issuance with ATM Infrastructure
According to the apex bank, the new regulation will require financial institutions to align the number of debit cards issued with the volume of ATM infrastructure they operate, in order to reduce congestion, downtime, and uneven cash distribution nationwide.
The CBN explained that banks will no longer be allowed to issue large volumes of debit cards without adequate ATM capacity to support customer demand.
“Very soon, the Central Bank will be coming up with another policy to sanitise and improve the situation, particularly around how many cards banks issue relative to the number of ATMs they support,” the bank stated.
Addressing Persistent ATM Failures and Cash Shortages
The CBN acknowledged that recurring ATM outages, long queues, and cash shortages continue to undermine public confidence in Nigeria’s electronic payment channels, even as digital transactions record steady growth.
“When cash access fails—whether due to prolonged ATM downtime or uneven cash distribution—the credibility of the entire payment system is weakened,” the bank noted.
The regulator said the new policy is aimed at restoring trust in both electronic banking platforms and physical cash access points.
Implementation Timeline and Stakeholder Engagement
Mr Karim disclosed that the CBN is currently engaging key industry stakeholders. They include deposit money banks and switching companies, ahead of the policy rollout.
He added that implementation is expected within the next few months, possibly before the end of the second quarter of 2026.
Expected Impact on Banks and Customers
The policy is expected to:
- Reduce long queues at ATMs
- Minimise frequent machine breakdowns
- Improve cash availability across urban and rural areas
- Enhance the reliability of Nigeria’s electronic payment system
The CBN’s policy to balance debit card distribution with ATM availability is designed to incentivize greater infrastructure investment from banks. This approach is intended to enhance service quality and accessibility for customers across Nigeria.
Strengthening Confidence in Digital Banking
The apex bank noted that electronic transactions continue to rise. But poor cash access has caused many Nigerians to lose confidence in digital banking channels.
Governor Cardoso reiterated that the upcoming policy is intended to clean up the system. It will ensure that banks maintain a sustainable balance between customer demand and service capacity.
