A recent report by KPMG has revealed a significant 40% decline in the usage of Automated Teller Machines (ATMs) in the last quarter of 2023, attributed to Naira scarcity. The multinational consulting firm’s report, titled “In Pursuit of Value,” gathered data from surveyed customers of Nigerian and Ghanaian banks, outlining their experiences throughout the year.
The survey data unveiled a notable reduction in ATM usage in Nigeria due to the consistent unavailability of cash at bank ATMs. Amid this decline, the report highlighted a surge in agent banking, particularly via Point of Sale (POS) operators, during the same period.
Furthermore, the Nigeria Inter-Bank Settlement System (NIBSS) witnessed a remarkable 52% increase, attributed to the Central Bank of Nigeria’s initiatives to regulate Naira circulation.
According to the report, “Currently, four in 10 customers report weekly ATM usage, marking a substantial decline from the previous seven in 10 over the past few years. This dip in ATM usage aligns with a significant rise in agency banking, with six in 10 customers visiting bank agents every week.”
The report emphasized that this shift has led to a surge in digital payments, indicating a 52% rise in total NIBSS Instant Payment transactions by October 2023, compared to January of the same year. The surge was catalyzed by the Central Bank of Nigeria’s efforts to revamp the Naira, aiming to regulate cash circulation and diminish reliance on physical currency.
The findings from KPMG’s report shed light on the evolving financial landscape in the face of Naira scarcity, signaling a notable transition towards digital payment solutions and alternative banking channels.
