Nigerians continued to rely heavily on cash withdrawals in the first half of 2025, accessing ₦36.34 trillion via Automated Teller Machines (ATMs) between January and June nearly three times the ₦12.21 trillion recorded in the same period of 2024.
Data from the Central Bank of Nigeria’s (CBN) quarterly statistical bulletin show that the surge occurred despite the introduction of a revised ATM fee structure in March 2025, aimed at discouraging excessive cash usage.
The new fee regime removed the previous allowance of three free monthly withdrawals on other banks’ ATMs, raising the cost of cash access. Under the framework, customers withdrawing from another bank’s ATM now pay ₦100 for every ₦20,000 withdrawn, while offsite ATMs attract additional charges of up to ₦500 per transaction. The CBN said the adjustments were necessary to offset rising operational costs and improve ATM efficiency.
Withdrawals grew steadily throughout the first half of the year, accelerating quarter by quarter. The first quarter saw ₦15.97 trillion withdrawn — nearly triple the ₦5.46 trillion in Q1 2024 — and the momentum continued in Q2, rising to ₦20.36 trillion compared with ₦6.75 trillion a year earlier.
Monthly withdrawals climbed from ₦4.81 trillion in January to ₦5.40 trillion in February, ₦5.76 trillion in March, peaking at ₦7.44 trillion in May before easing slightly to ₦6.55 trillion in June. Transaction volumes also rose sharply to 858.8 million in six months, up nearly 73% from 496.47 million a year earlier.
Despite the higher costs, the increase suggests that elevated fees had little effect on how frequently Nigerians accessed cash, highlighting the country’s sustained dependence on ATMs.
The trend has drawn criticism from labour unions, consumer groups, and some industry stakeholders. The Trade Union Congress described the fee hike as exploitative, while the Socio-Economic Rights and Accountability Project challenged the policy in court, citing undue burden on low-income earners. Some banking stakeholders, however, argued that the fee adjustments were necessary, though concerns remain about timing and scale amid broader economic pressures.
The persistence of ATM withdrawals contrasts with growth in electronic payment channels. While point-of-sale transactions remained dominant in absolute value — rising to ₦147.2 trillion in H1 2025 — ATM withdrawals grew at a faster pace, underscoring Nigerians’ continued reliance on cash.
