CBN to Enforce ATM-Card Ratio Policy for Improved Cash Access
The Central Bank of Nigeria (CBN) has announced plans to introduce a new regulatory framework aimed at resolving persistent cash access challenges by linking debit card issuance to Automated Teller Machine (ATM) infrastructure. This policy shift, designed to sanitize operations across the banking sector, 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.
The initiative seeks to align the volume of cards issued by commercial banks with their deployed ATM networks. The CBN identified that aggressive card issuance, while supporting financial inclusion, has not been matched by proportional investment in ATM and cash withdrawal infrastructure. This mismatch has led to widespread congestion, machine downtime, and uneven cash availability, undermining public confidence in electronic payment channels despite the rapid growth of digital transactions.
“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 stated. The bank emphasized that when cash access fails, the credibility of the entire payment system is weakened. Mr. Karim indicated that stakeholder engagements are ongoing and the policy is expected to take effect within months, potentially before the end of the second quarter.
This structural intervention follows other national efforts to strengthen economic frameworks, such as when the FG introduces industrialisation policy to boost manufacturing. The proposed ATM-card ratio policy is anticipated to reshape bank strategies, accelerating direct investment in ATM infrastructure, uptime, and cash management. Customers are expected to benefit from improved machine availability and reduced transaction failures, which could decrease reliance on costly informal cash channels.
The CBN reiterated that physical cash remains critically relevant, especially in informal markets and rural communities, noting a 4.6% growth in currency in circulation in December 2025 compared to the previous year. Restoring reliable cash access is deemed vital for financial system stability and public trust. This focus on foundational financial infrastructure complements broader economic initiatives, similar to the strategic goals behind the Tinubu: UAE trade deal and the specialized financing seen when Deap Capital signs MOU to start minerals and metals financing, all aiming for a more robust and accessible economic environment for all sectors.
