Cash withdrawals through Automated Teller Machines (ATMs) rose sharply in the first half of 2025, underscoring Nigerians’ continued reliance on cash transactions despite higher fees introduced by the Central Bank of Nigeria (CBN).
Figures from the CBN’s quarterly statistical bulletin show that Nigerians withdrew a total of ₦36.34 trillion from ATMs between January and June 2025, nearly three times the ₦12.21 trillion recorded during the same period in 2024. The sharp increase occurred even after the apex bank revised ATM charges in March as part of efforts to curb excessive cash usage and improve efficiency in the banking system.
Under the new fee regime, the CBN removed the long-standing provision that allowed customers three free monthly withdrawals on other banks’ ATMs. Customers now pay ₦100 for every ₦20,000 withdrawn from another bank’s machine, while transactions at offsite ATMs attract additional charges of up to ₦500 per withdrawal.
In a circular announcing the changes, the CBN said the review was necessitated by rising operational costs and the need to enhance the efficiency and sustainability of ATM services. The apex bank added that the revised charges were also expected to encourage wider deployment of ATMs by financial institutions while ensuring appropriate pricing of the service.
Despite the higher costs, withdrawals accelerated steadily across the first two quarters of the year. In the first quarter of 2025, ATM withdrawals stood at ₦15.97 trillion, almost three times the ₦5.46 trillion recorded in the corresponding quarter of 2024. The trend strengthened further in the second quarter, with withdrawals rising to ₦20.36 trillion, compared with ₦6.75 trillion a year earlier.
Monthly data also reflected a consistent upward trajectory. Withdrawals increased from ₦4.81 trillion in January to ₦5.40 trillion in February and ₦5.76 trillion in March. The second quarter saw further growth, peaking at ₦7.44 trillion in May before easing slightly to ₦6.55 trillion in June.
The surge was evident not only in value but also in transaction volume. Nigerians carried out about 858.8 million ATM withdrawals in the first six months of 2025, up from 496.47 million in the same period last year — an increase of nearly 73 per cent. The data suggest that the higher charges had little impact on how frequently consumers accessed cash.
However, the sustained growth in ATM usage has drawn criticism from labour unions, consumer advocacy groups and civil society organisations. The Trade Union Congress described the fee hike as exploitative, while the Socio-Economic Rights and Accountability Project has challenged the policy in court, arguing that it disproportionately affects low-income earners.
Some industry stakeholders, while acknowledging that a review of fees was unavoidable given rising costs, have raised concerns about the scale and timing of the increase amid broader economic pressures.
The continued surge in ATM withdrawals contrasts with the expansion of electronic payment channels. Although point-of-sale transactions remained dominant in absolute value — rising to ₦147.2 trillion in the first half of 2025 — the growth rate of ATM withdrawals outpaced most other payment channels, highlighting the enduring role of cash in Nigeria’s economy
Credit: InsideBusiness
