Despite higher charges introduced by the Central Bank of Nigeria in March 2025, Nigerians continued to rely heavily on ATM withdrawals, with the total value of transactions reaching N36.34 trillion in the first half of the year. This represents nearly a threefold increase from N12.21 trillion recorded in the same period of 2024, highlighting the persistent demand for cash in the economy.
Data from the CBN’s quarterly statistical bulletin shows that between January and June 2025, ATM withdrawals totaled 858.8 million transactions, up from 496.47 million a year earlier, marking a 72.98 per cent rise in volume. The surge came even after the apex bank revised its fee structure, charging N100 per N20,000 withdrawn from other banks’ ATMs, with additional surcharges of up to N500 for offsite locations such as malls, airports, and fuel stations. The previous allowance of three free monthly withdrawals on other banks’ ATMs was removed.
Quarterly breakdowns illustrate the momentum. In the first quarter, Nigerians withdrew N15.97 trillion from ATMs, a 192.9 per cent increase over N5.46 trillion in the first quarter of 2024. Volumes rose from 210.66 million to 411.42 million transactions. The second quarter saw withdrawals climb to N20.36 trillion, more than triple the N6.75 trillion recorded in the same period of 2024, with transaction volumes rising to 447.39 million. Monthly figures confirm consistent growth, with May 2025 recording the highest withdrawal value at N7.44 trillion.
The continued preference for cash contrasts with the steady expansion of point-of-sale transactions. POS transaction values rose from N85.91 trillion in the first half of 2024 to N147.20 trillion in the same period of 2025, while volumes increased from 6.4 billion to 7.72 billion transactions. Yet, the pace of growth in ATM withdrawals outstripped that of POS channels, underscoring cash’s enduring role in everyday economic activity.
The fee revision has drawn criticism. FinTech executive Tope Dare warned it disproportionately affects low-income Nigerians, who typically withdraw smaller amounts, while wealthier individuals can avoid the fees more easily. The consumer rights group SERAP also filed legal action against the CBN, calling the fees “unfair, unreasonable, and unjust.” Similarly, the Trade Union Congress urged Nigerians to reject the policy, describing it as exploitative.
Some, however, defended the move. Dr. Uju Ogubunka, Chairman of the Bank Customers Association of Nigeria, acknowledged the increase was expected given the state of the economy but questioned the extent of the hike and its affordability.
The CBN has also introduced reforms to improve consumer protection. In October 2025, it mandated that banks refund customers for failed ATM transactions within 48 hours and set minimum ATM deployment targets to improve access: one ATM for every 5,000 active cards, with phased compliance reaching full coverage by 2028.
Despite efforts to encourage electronic payments, cash outside banks continues to rise. In November 2025, Nigerians held N4.91 trillion outside the banking system, up from N4.65 trillion in October. Currency in circulation reached N5.26 trillion, with about 93 per cent held outside banks.
The preference for cash raises macroeconomic concerns. Large holdings outside the banking system reduce deposit mobilisation, complicate monetary policy, and increase informal transactions. These trends challenge the CBN’s efforts to tighten liquidity and control inflation, highlighting the resilience of cash in Nigeria’s economy.
