FCCPC backs CBN’s 48-hour refund policy for failed ATM transactions

The Federal Competition and Consumer Protection Commission (FCCPC) has thrown its weight behind the Central Bank of Nigeria (CBN) over its new draft guidelines mandating banks to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.

The FCCPC’s Director of Corporate Affairs, Mr. Ondaje Ijagwu, disclosed the Commission’s position in a statement issued on Monday, noting that the move aligns with the Commission’s ongoing efforts to protect consumers from unfair banking practices.

According to the statement, the CBN’s policy followed findings from the FCCPC’s Consumer Complaints Data Report released in September, which revealed widespread issues of delayed or unresolved failed transactions across banks.

The FCCPC’s Executive Vice Chairman, Mr. Tunji Bello, described the CBN’s proposal as a “timely and long-awaited correction” to one of the most common grievances among Nigerian bank customers.

“It is consistent with what the FCCPC has been advocating, given the number of complaints we receive about failed transactions.

“We commend the CBN for this decisive step, which will ease the burden on consumers and rebuild trust in financial services,” Bello said.

He explained that the proposed directive aligns with the Federal Competition and Consumer Protection Act (FCCPA) 2018, especially Sections 17(g), (h), (l), (s), and (t), which emphasize fair dealings, elimination of unfair practices, and prompt consumer redress mechanisms.

Bello further noted that the timely adoption of the guidelines would strengthen accountability within the banking sector and boost consumer confidence in the financial system.

He added that the FCCPC would collaborate with the CBN to create monitoring frameworks that ensure banks comply with the refund timelines and provide redress when they fail to do so.

“Closer collaboration among regulators will lead to faster resolutions, prevent recurrences, and strengthen consumer confidence in Nigeria’s growing digital economy,” he added.

The CBN’s draft framework, released on October 9, requires banks to instantly reverse failed ATM transactions carried out on their own machines (on-us transactions).

Where instant reversal is not possible due to technical issues, refunds must be completed within 24 hours.

For not-on-us transactions—where a customer uses another bank’s ATM—the maximum refund period is 48 hours.

The framework also mandates ATM acquirers to deploy systems that automatically initiate refunds without waiting for customer complaints and to reconcile all unreturned funds arising from failed or partial cash disbursements.

The FCCPC said it would continue to support the CBN in ensuring full compliance, stressing that consumer protection and financial transparency remain central to Nigeria’s evolving digital banking landscape.