Nigerians’ reliance on cash withdrawals through Automated Teller Machines (ATMs) persisted in the first half of 2025, with total withdrawals amounting to ₦36.34 trillion between January and June. This represents a significant increase from the ₦12.21 trillion recorded during the same period in 2024. The Central Bank of Nigeria’s (CBN) quarterly statistical bulletin reveals that despite the introduction of a revised fee regime in March aimed at discouraging excessive cash usage, the growth in ATM withdrawals continued.
The revised fee regime removed the previous allowance of three free monthly withdrawals on other banks’ ATMs, increasing the cost of accessing cash. According to the CBN, the review was necessary due to rising operational costs and the need to enhance efficiency in ATM operations. Under the new framework, customers withdrawing from another bank’s ATM are charged ₦100 for every ₦20,000 withdrawn, while offsite ATMs attract additional charges of up to ₦500 per transaction.
Monthly data shows a steady climb in ATM withdrawals across the period, with the highest value recorded in May at ₦7.44 trillion. The rise was not limited to value alone, as transaction volumes climbed to 858.8 million withdrawals in the six months, representing a 73% increase from the previous year. This sustained demand for cash has drawn criticism from various stakeholders, including labour unions and consumer groups, who argue that the fee hike places an unfair burden on low-income earners.
The growth in ATM withdrawals contrasts with the expansion of electronic payment channels, which continued to dominate in absolute value. Point-of-sale transactions rose to ₦147.2 trillion in the first half of 2025, although the pace of growth in ATM withdrawals was significantly faster. The persistence of ATM withdrawals underscores the need for continued efforts to promote electronic payment channels and reduce reliance on cash transactions.
The CBN’s move to increase fees on ATM transactions is part of a broader strategy to promote a cashless economy. While some industry stakeholders argue that the fee increase was inevitable, others have raised concerns about its scale and timing. As the Nigerian economy continues to evolve, it remains to be seen how the growth in ATM withdrawals will impact the country’s progress towards a more digital payment landscape.
