Nigerians continued to rely heavily on cash withdrawals in the first half of 2025 despite higher automated teller machine (ATM) charges, with the value of withdrawals rising sharply to N36.34 trillion, according to data from the Central Bank of Nigeria (CBN).
Figures from the CBN’s quarterly statistical bulletin show that ATM withdrawals between January and June 2025 nearly tripled from N12.21 trillion recorded in the same period of 2024, representing a year-on-year increase of about 198 per cent. Transaction volumes also climbed to 858.8 million withdrawals, up nearly 73 per cent from 496.47 million a year earlier.
The surge followed the introduction of a revised ATM fee regime in March 2025, under which customers are charged N100 per N20,000 withdrawn on other banks’ ATMs, with additional surcharges of up to N500 for offsite terminals. Despite the higher costs and the removal of free monthly withdrawals, ATM usage accelerated across both the first and second quarters of the year.
Analysts say the data underline the resilience of cash in Nigeria’s economy, even as electronic payments expand. While point-of-sale transactions remained dominant in overall value, the faster growth in ATM withdrawals highlights persistent dependence on physical cash, raising concerns for monetary control and the CBN’s broader efforts to promote a cashless economy.
