Cash withdrawals via automated teller machines (ATMs) jumped sharply in the first half of 2025, highlighting Nigerians’ continued reliance on physical cash even after the Central Bank of Nigeria (CBN) increased withdrawal fees.
Data from the apex bank show that customers withdrew ₦36.34 trillion from ATMs between January and June 2025, nearly three times the ₦12.21 trillion recorded in the same period of 2024. The surge came despite a revised pricing framework introduced in March to discourage heavy cash usage.
Transaction volumes also rose significantly. Nigerians carried out about 858.8 million ATM withdrawals in the six-month period, up from 496.47 million a year earlier, representing a 73 percent increase. The figures suggest that higher fees did little to curb the frequency of cash transactions.
Under the new fee regime, customers now pay ₦100 for every ₦20,000 withdrawn from another bank’s ATM, while withdrawals from offsite machines can attract additional charges of up to ₦500 per transaction. The CBN said the adjustments were driven by rising operating costs and the need to sustain ATM services nationwide.
Withdrawals gathered pace as the year progressed. In the first quarter of 2025, ATM transactions amounted to ₦15.97 trillion, almost three times the ₦5.46 trillion recorded in the corresponding period of 2024. The trend strengthened in the second quarter, with withdrawals rising to ₦20.36 trillion, compared with ₦6.75 trillion a year earlier.
Monthly figures reflect steady growth. Withdrawals increased from ₦4.81 trillion in January to ₦5.40 trillion in February and ₦5.76 trillion in March. Demand remained strong in the second quarter, peaking at ₦7.44 trillion in May before easing slightly to ₦6.55 trillion in June.
The sharp rise has drawn criticism from labour unions and consumer advocacy groups. The Trade Union Congress has described the higher charges 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 banking industry stakeholders, however, say the increase was unavoidable, citing inflation and rising infrastructure costs, though concerns remain about its timing amid broader economic pressures.
The persistence of cash usage contrasts with the expansion of electronic payments. Point-of-sale transactions remained dominant by value, reaching ₦147.2 trillion in the first half of 2025, even as ATM withdrawals recorded faster growth.
