The Central Bank of Nigeria (CBN) is set to implement stricter regulations governing the issuance of debit cards and the operation of Automated Teller Machines (ATMs) across the country. The move aims to sanitize the sector, address persistent issues of cash shortages, and improve the overall efficiency of electronic payment systems.

The new policy will focus on the ATM-card ratio, ensuring that banks maintain an adequate supply of ATMs relative to the number of debit cards issued. This is intended to guarantee better service delivery and reduce instances where cardholders struggle to access cash, according to sources familiar with the matter.

The development follows increasing concerns about the functionality of ATMs and the even distribution of debit cards, with many Nigerians frequently experiencing difficulties in accessing cash through these channels. The CBN hopes that the new regulatory framework will compel banks to optimize their ATM deployment strategies and card issuance processes.

Industry analysts believe that the CBN's intervention is a necessary step to enhance confidence in the nation's electronic payment infrastructure. A more efficient ATM network and a more streamlined card issuance process are expected to reduce reliance on physical cash and promote the adoption of digital payment methods. The central bank has been actively promoting a cashless policy, and these measures align with that broader objective.

The specific details of the new regulations are expected to be released by the CBN in the coming weeks. Banks will then be required to adjust their operations to comply with the new requirements. Market watchers anticipate that the policy will lead to increased investment in ATM infrastructure and a more strategic approach to debit card issuance by Nigerian banks.