Naira withdrawals surged after the Central Bank of Nigeria introduced new ATM fees in February, but many expected transactions to slow.
However, Nigerians rushed to ATMs, withdrawing record sums of cash in the first quarter of 2025.
Naira Withdrawals Surge
ATM withdrawals reached ₦15.97 trillion, nearly triple the ₦5.46 trillion recorded in Q1 2024, showing rapid growth.
Meanwhile, transaction numbers climbed to 411 million withdrawals, almost double the previous year, reflecting increased activity.
Record Transaction Values
Moreover, the value of withdrawals grew faster than the number of transactions, indicating that Nigerians took out larger sums per visit.
In January, people withdrew ₦4.81 trillion; by March, after the new fees, they withdrew ₦5.76 trillion.
Adapting To New Fees
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Consequently, the average withdrawal rose from ₦32,660 to over ₦44,500, almost double March 2024’s figure.
The CBN eliminated free “Not-On-Us” withdrawals, charging ₦100 per ₦20,000 and up to ₦500 for off-site transactions.
Nevertheless, customers adapted by consolidating cash withdrawals into fewer, larger transactions, avoiding multiple fees.
For banks, these changes increased revenue from interbank fees, but ATM networks faced heavier operational pressure.
Furthermore, inflation likely pushed households and businesses to withdraw higher sums to cover daily costs.
Ultimately, the data shows that higher ATM fees did not deter Nigerians; they withdrew larger amounts in fewer transactions.
