After CBN’s Order to Access, Zenith, UBA, Other Banks, ATM Withdrawals Jump to 198 Per Cent
- Nigerians' ATM withdrawals soared to ₦36.34 trillion in H1 2025, nearly tripling from ₦12.21 trillion in 2024
- Transaction volumes increased significantly to 858.80 million, reflecting a 72.98% growth in cash access
- This came amid concerns that revised ATM fees disproportionately affect low-income Nigerians
Nigerians are withdrawing more cash than ever, defying the Central Bank of Nigeria’s (CBN) attempt to curb cash usage through higher ATM charges.
Data from the CBN’s quarterly statistical bulletin showed that ATM withdrawals surged to ₦36.34 trillion in the first half of 2025, nearly tripling the ₦12.21 trillion recorded in the same period of 2024.
Source: Getty Images
The ₦24.13 trillion increase represents a year-on-year jump of 197.66 per cent, underscoring the resilience of cash usage even as regulators tighten monetary policy and raise transaction costs.
Transaction volumes also rise sharply
Beyond value, transaction volumes climbed significantly. Nigerians carried out 858.80 million ATM withdrawals between January and June 2025, compared with 496.47 million transactions a year earlier.
The increase of 362.34 million withdrawals translates to a growth rate of 72.98 per cent.
The data suggest that higher fees did little to discourage cash access, particularly for daily transactions and small-value withdrawals.
CBN’s revised ATM fee regime
The surge comes amid the CBN’s revised ATM fee framework, which took effect in March 2025.
Under the policy, customers using another bank’s ATM now pay ₦100 per ₦20,000 withdrawal, while offsite ATMs in locations such as malls, fuel stations, and airports attract additional surcharges of up to ₦500 per ₦20,000.
The apex bank also scrapped the previous allowance of three free monthly withdrawals on other banks’ ATMs, citing rising operational costs and the need to improve efficiency across the banking system.
Quarterly data show accelerating momentum
ATM usage accelerated throughout the year. In the first quarter of 2025, withdrawals totalled ₦15.97 trillion, up from ₦5.46 trillion in the same quarter of 2024, representing a 192.9 per cent increase.
Transaction volumes nearly doubled, rising by 95.3 per cent.
The second quarter recorded even stronger growth. Withdrawals jumped to ₦20.36 trillion from ₦6.75 trillion a year earlier, while transaction volumes rose by 56.5 per cent to 447.39 million.
Monthly figures reveal consistent expansion, with May posting the highest withdrawal value at ₦7.44 trillion, almost three times the figure recorded in May 2024.
Cash still competes with digital payments
While point-of-sale (POS) transactions continue to dominate in absolute terms, ATM withdrawals are growing at a faster pace.
POS transaction values increased from ₦85.91 trillion in the first half of 2024 to ₦147.20 trillion in the same period of 2025, but the growth rate lagged behind that of ATM usage.
According to a report by Punch, this trend highlights the enduring role of cash in daily economic activity, particularly among low-income earners and informal businesses.
Public pushback and policy concerns
The revised fees have sparked backlash. FinTech executive Tope Dare warned that the policy disproportionately affects low-income Nigerians who withdraw smaller amounts more frequently.
Consumer rights group SERAP also sued the CBN, describing the charges as unfair and exploitative.
Labour unions echoed similar concerns, while the Bank Customers Association of Nigeria acknowledged the inevitability of fee increases but questioned their timing and scale.
Rising cash outside banks raises red flags
CBN data show that cash outside banks climbed to ₦4.91 trillion in November 2025, with over 93 per cent of total currency in circulation held outside the banking system.
Economists warn that this trend weakens monetary control, limits deposit mobilisation, and complicates inflation management.
ATM withdrawal limits increase
Despite reforms and higher fees, the numbers suggest one clear reality: Nigeria remains a cash-driven economy, and changing that habit may require more than pricing pressure alone.
The move comes after the apex bank increased the daily withdrawal limits for ATMs across the country.
The financial sector regulator revised its cash withdrawal and deposit rules, effective January 1, 2026.
In a circular signed by Rita Sike, Director of the Financial Policy & Regulation Department, the apex bank said the new rules are aimed at addressing the high cost of cash handling, addressing security risks, and curbing money laundering while encouraging wider use of electronic payment channels.
Source: Twitter
Under the new guidelines, banks and other financial institutions are expected to comply with the updated cash-related rules, which overhaul several existing policies.
Also, CBN increased daily withdrawal limits from Point of Sale (PoS) as it pushes for reforms in the financial services sector.
Banks shut 229 branches
Legit.ng earlier reported that Nigeria’s banking landscape is undergoing a quiet but profound transformation.
In the space of one year, Deposit Money Banks shut 229 physical branches nationwide as customers increasingly shifted everyday transactions to Point of Sale terminals and other electronic channels.
According to the Central Bank of Nigeria’s 2024 Financial Sector Statistical Bulletin, the total number of bank branches and cash centres fell from 5,373 in 2023 to 5,144 in 2024.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
