The Central Bank of Nigeria (CBN) has announced plans to introduce a new regulatory policy aimed at sanitising debit card issuance and improving Automated Teller Machine (ATM) operations across Nigerian banks, as part of efforts to address persistent cash access challenges nationwide.
The disclosure was made by the CBN Governor, Mr. Yemi Cardoso, through his Special Adviser, Mr. Fatai Karim, at the 2026 Committee of Heads of Bank Operations Conference.
According to the apex bank, the proposed policy will align the volume of debit cards issued by banks with the size and capacity of their deployed ATM infrastructure.
The CBN said the move is designed to reduce congestion at ATMs, frequent machine downtime, and uneven cash availability, which have continued to frustrate customers and undermine confidence in electronic payment channels despite the rapid growth of digital banking in the country.
Karim explained that banks will no longer be permitted to issue large volumes of debit cards without making corresponding investments in ATM networks, cash logistics, and withdrawal infrastructure.
“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 CBN said.
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“Certainly in the next few months, once engagement is concluded with other stakeholders, the CBN will make an announcement. When cash access fails—whether due to prolonged ATM outages or uneven distribution—the credibility of the entire payment system is weakened.”
He added that the apex bank is currently engaging industry stakeholders and expects the policy to take effect within months, possibly before the end of the second quarter of 2026.
Over the years, Nigerian banks have aggressively expanded debit card issuance to promote financial inclusion and support the shift toward digital payments.
However, ATM deployment and investments in cash management infrastructure have not kept pace with the rapid growth in card issuance.
As a result, customers frequently face long queues, empty ATMs, and failed transactions, forcing many to rely on informal cash channels such as Point-of-Sale (POS) operators, often at significantly higher costs.
These structural gaps, the CBN noted, have persisted despite regulatory efforts to modernise payment systems and improve cash circulation nationwide.
The proposed policy is expected to significantly reshape banks’ card issuance strategies, while accelerating investments in ATM infrastructure, machine uptime, and efficient cash management.
Banks will face stricter scrutiny over the number of cards issued relative to their ATM capacity, while customers are expected to benefit from improved access to cash and reduced transaction friction.
The CBN said stronger ATM and cash infrastructure could also reduce Nigerians’ dependence on informal cash channels and help restore public confidence in both cash access and electronic payment systems—an outcome it described as critical to financial system stability.
While acknowledging the steady growth of digital payments, the apex bank stressed that cash remains relevant, particularly in informal markets and rural communities.
According to the CBN, currency in circulation grew by 4.6 per cent in December 2025 compared to December 2024.