ATM transactions set the tone for Nigeria’s payments story in early 2025, as Nigerians returned to cash machines in record numbers despite higher fees.
However, higher ATM fees failed to slow Nigerians’ appetite for cash withdrawals in early 2025.
Cash Demand Defies Fees
According to Central Bank of Nigeria data, ATM withdrawals reached ₦36.34 trillion between January and June.
In contrast, Nigerians withdrew ₦12.21 trillion during the same period in 2024.
As a result, withdrawals jumped by nearly ↑198% after regulators introduced higher charges.
Meanwhile, transaction volumes also climbed sharply over the six-month period.
Specifically, Nigerians completed 858.80 million ATM withdrawals, up from 496.47 million last year.
Therefore, a ↑73% rise showed demand stayed strong despite higher costs.
ATM Usage Accelerates Rapidly
Early in the year, momentum built rapidly.
In the first quarter, withdrawals surged to ₦15.97 trillion from ₦5.46 trillion in 2024.
At the same time, transaction volumes nearly doubled to 411.42 million.
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Subsequently, ATM usage accelerated further in the second quarter.
Between April and June, Nigerians withdrew ₦20.36 trillion from ATMs.
Notably, this exceeded the ₦6.75 trillion recorded in the same period last year by ↑202%.
Month by month, usage rose steadily across the half year.
In January, withdrawals hit ₦4.81 trillion, more than double January 2024 levels.
Likewise, February and March sustained growth in both value and volume.
Cash Still Dominates
Thereafter, the second quarter delivered even stronger figures.
In May, withdrawals peaked at ₦7.44 trillion, the highest monthly total.
Although June dipped slightly, withdrawals still far exceeded last year’s figures.
Meanwhile, electronic payments continued expanding across the economy.
Point-of-sale transactions climbed to ₦147.20 trillion in the first half of 2025.
However, ATM withdrawals grew much faster than POS activity.
Importantly, the surge followed changes to ATM charges in February 2025.
Under the new rules, customers pay ₦100 per ₦20,000 withdrawn at other banks’ ATMs.
In addition, banks apply extra surcharges at off-site locations such as malls and fuel stations.
According to the CBN, rising costs and efficiency needs drove the review.
Nevertheless, Nigerians increased ATM usage instead of cutting back.
Ultimately, the data confirm that cash remains central to Nigeria’s daily economic activity.
