Nigerians Withdraw ₦36.3trn Via ATMs In 6 Months Despite Higher Charges — CBN

Nigerians withdrew a total of ₦36.34 trillion through Automated Teller Machines (ATMs) between January and June 2025, despite higher transaction charges introduced by the Central Bank of Nigeria (CBN) to curb excessive cash usage, according to data from the apex bank.

Figures from the CBN’s quarterly statistical bulletin showed that withdrawals in the first half of 2025 were almost three times the ₦12.21 trillion recorded during the same period in 2024, underscoring the country’s continued dependence on cash.

The sharp increase came after the CBN revised its ATM fee regime in March, removing the allowance of three free monthly withdrawals on other banks’ ATMs and increasing the cost of accessing cash.

Under the new framework, customers now pay ₦100 for every ₦20,000 withdrawn from another bank’s ATM, while offsite ATMs attract additional charges of up to ₦500 per transaction.

In a circular explaining the policy shift, the apex bank said the review was necessitated by rising operational costs and the need to improve ATM service efficiency across the banking industry. The CBN added that the changes were also expected to accelerate ATM deployment and ensure appropriate charges for consumers.

Despite the higher costs, withdrawals continued to accelerate quarter by quarter. In the first quarter of 2025, ATM withdrawals totalled ₦15.97 trillion, nearly three times the ₦5.46 trillion recorded in the same quarter of 2024. The momentum strengthened further in the second quarter, when withdrawals rose to ₦20.36 trillion, compared with ₦6.75 trillion a year earlier.

Monthly figures showed a steady climb across the period. Withdrawals increased from ₦4.81 trillion in January to ₦5.40 trillion in February and ₦5.76 trillion in March. The upward trend continued into the second quarter, peaking at ₦7.44 trillion in May before easing slightly to ₦6.55 trillion in June.

Transaction volumes also rose sharply, reaching 858.8 million ATM withdrawals in the six-month period, up from 496.47 million a year earlier — an increase of nearly 73 per cent. The data indicate that higher charges had little impact on how frequently Nigerians accessed cash.

The sustained reliance on cash has attracted criticism from labour unions and civil society groups. The Trade Union Congress described the fee hike as exploitative, while the Socio-Economic Rights and Accountability Project has taken legal action against the policy, arguing that it places an unfair burden on low-income earners.

Some banking stakeholders, however, maintain that the increase in charges was inevitable due to rising costs, though concerns persist over its scale and timing amid wider economic pressures.

The surge in ATM withdrawals contrasts with the growth of electronic payment channels. While point-of-sale transactions remained dominant in absolute terms, rising to ₦147.2 trillion in the first half of 2025, ATM withdrawals grew faster, highlighting Nigerians’ enduring preference for cash.