The Central Bank of Nigeria has disclosed plans to introduce a new regulatory policy to sanitise debit card issuance and Automated Teller Machine operations across Nigerian banks, targeting persistent cash access challenges.
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.
The apex bank said the initiative will align the number of cards issued by banks with deployed ATM infrastructure to curb congestion, downtime, and uneven cash availability nationwide.
The CBN noted that recurring ATM failures and cash shortages continue to undermine confidence in electronic payment channels despite the rapid expansion of digital transactions across the banking system.
The apex bank said banks will no longer be allowed to issue massive volumes of cards without corresponding investment in ATM and cash 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.
“Certainly the next few months; once the engagement is concluded with other stakeholders, 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,” the CBN stated.
Karim said the CBN is engaging industry stakeholders and expects the policy to take effect within months, possibly before the end of the second quarter.
Nigeria’s banks have aggressively issued debit cards over the years to support financial inclusion and digital payments, but ATM deployment has not kept pace.
Card issuance expanded faster than ATM networks and cash logistics investments.
Customers frequently experience long queues, empty machines, and failed transactions. Informal cash channels, such as POS operators, have filled gaps at higher costs.
These structural gaps have persisted despite regulatory efforts to modernise payments and improve cash circulation nationwide.
The proposed policy is expected to reshape banks’ card issuance strategies and accelerate investment in ATM infrastructure, uptime, and cash management.
Banks will face tighter scrutiny over card issuance volumes and ATM deployment. Customers are expected to benefit from improved ATM availability and reduced transaction friction.
Stronger infrastructure could reduce reliance on informal cash channels. The CBN said restoring credibility in cash access and electronic payments is critical to financial system stability and public trust.
The CBN says cash remains relevant despite digital growth, particularly in informal markets and rural communities. Currency in circulation grew by 4.6% in December 2025 compared to December 2024, according to the CBN.
Cash demand rises sharply when electronic channels fail. Reliable digital channels help reduce pressure on physical cash.
The apex bank insists its objective is not to eliminate cash but to strike a balance between cash and digital payments, ensuring Nigerians can always access cash while building confidence in electronic channels across the country during everyday transactions and emergencies nationwide.
