Cash withdrawals through automated teller machines surged sharply in the first half of 2025, underscoring Nigerians’ continued dependence on physical cash even after the Central Bank of Nigeria (CBN) raised ATM charges.
CBN data show that Nigerians withdrew ₦36.34 trillion from ATMs between January and June 2025, almost three times the ₦12.21 trillion recorded in the same period last year. The increase came despite a revised fee regime introduced in March, aimed at discouraging excessive cash usage.
The rise was not limited to value alone. Transaction volumes climbed to 858.8 million withdrawals in the six-month period, compared with 496.47 million a year earlier — an increase of nearly 73 per cent. The figures suggest that higher charges had little effect on how frequently Nigerians accessed cash.
Under the new CBN framework, customers withdrawing from another bank’s ATM now pay ₦100 for every ₦20,000 withdrawn, while offsite ATMs attract additional charges of up to ₦500 per transaction.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 apex bank said the review was driven by rising operational costs and the need to improve ATM efficiency.
Read Also: Tinubu’s budget clock ticks as FG juggles two fiscal years
Despite the higher costs, withdrawals accelerated quarter by quarter. In the first quarter of 2025, ATM withdrawals totalled ₦15.97 trillion, nearly triple 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 data show a steady climb across the period. Withdrawals rose from ₦4.81 trillion in January to ₦5.40 trillion in February and ₦5.76 trillion in March. The upward trend continued in the second quarter, peaking at ₦7.44 trillion in May before easing slightly to ₦6.55 trillion in June.
The sustained demand for cash 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, arguing that it places an unfair burden on low-income earners.
Some banking stakeholders, however, said the fee increase was inevitable, though concerns remain about its scale and timing given broader economic pressures.
The persistence of ATM withdrawals contrasts with the growth of electronic payment channels. While point-of-sale transactions continued to dominate in absolute value — rising to ₦147.2 trillion in the first half of 2025 — the pace of growth in ATM withdrawals was significantly faster.
