Nigerians withdrew a staggering ₦36.34 trillion through Automated Teller Machines (ATMs) in the first half of 2025, despite higher charges introduced by the Central Bank of Nigeria (CBN) to discourage cash usage.
The figure, covering January to June 2025, is nearly three times the ₦12.21 trillion recorded in the same period of 2024, according to data from the CBN’s quarterly statistical bulletin.
The sharp rise came even as the apex bank, in March 2025, revised its ATM fee regime, removing the allowance of three free monthly withdrawals on other banks’ ATMs and increasing the cost of accessing cash.
In a circular announcing the policy shift, the CBN said the review was driven by rising operational costs and the need to improve efficiency in ATM services.
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“In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020,” the bank stated.
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”
Under the new framework, customers withdrawing from another bank’s ATM now pay ₦100 for every ₦20,000 withdrawn, while transactions at offsite ATMs attract additional charges of up to ₦500.
Despite the higher fees, withdrawals accelerated quarter by quarter. In the first quarter of 2025, ATM withdrawals rose to ₦15.97 trillion, almost triple the ₦5.46 trillion recorded in the same quarter of 2024. The momentum strengthened further in the second quarter, with withdrawals climbing to ₦20.36 trillion, compared with ₦6.75 trillion a year earlier.
Monthly data also showed a steady rise. Withdrawals increased 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 reliance on cash has drawn criticism from labour unions, consumer groups and some industry stakeholders.
The Trade Union Congress (TUC) described the fee hike as exploitative, while the Socio-Economic Rights and Accountability Project (SERAP) challenged the policy in court, arguing that it places an unfair burden on low-income earners.
Some banking industry stakeholders, however, said the increase was inevitable, citing rising operating costs, although concerns remain about the scale and timing of the hike amid broader economic pressures.
The surge in ATM withdrawals contrasts with the expansion of electronic payment channels. While point-of-sale (PoS) transactions dominated in absolute value — rising to ₦147.2 trillion in the first half of 2025 — the pace of growth in ATM withdrawals was significantly faster, underscoring Nigerians’ continued dependence on cash.
