ATM Withdrawals Hit ₦36.3tn Despite CBN Higher Charges

Nigerians continued dependence on cash withdrawals through Automated Teller Machines (ATMs) in the first half of 2025, withdrawing ₦36.34 trillion between January and June 2025, almost three times the ₦12.21 trillion recorded in the same period last year.

Data from the Central Bank of Nigeria’s quarterly statistical bulletin show that the increase came despite a revised fee regime introduced in March, aimed at discouraging excessive cash usage.

The removal of the previous allowance of three free monthly withdrawals on other banks’ ATMs further increased the cost of accessing cash. The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.

The circular read, “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 Guide).

“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. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

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Withdrawals accelerated quarter by quarter despite the higher costs.

In the first quarter of 2025, ATM withdrawals totalled ₦15.97 trillion, nearly triple the ₦5.46 trillion recorded in the same quarter of 2024. The momentum strengthened further in the second quarter, when withdrawals rose to ₦20.36 trillion, compared with ₦6.75 trillion a year earlier.

Under the new CBN framework, customers withdrawing from another bank’s ATM now pay ₦100 for every ₦20,000 withdrawn, while offsite ATMs attract additional charges of up to ₦500 per transaction. The apex bank said the review was driven by rising operational costs and the need to improve ATM efficiency.

Monthly data show a steady climb across the period. Withdrawals rose 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.

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The rise was not limited to value alone. Transaction volumes climbed to 858.8 million withdrawals in the six months, compared with 496.47 million a year earlier — an increase of nearly 73 per cent. The figures suggest that higher charges had little effect on how frequently Nigerians accessed cash.

The sustained demand for cash has, however, drawn criticism from labour unions, consumer groups, and some industry stakeholders.

The Trade Union Congress described the fee hike as exploitative, while the Socio-Economic Rights and Accountability Project challenged the policy in court, arguing that it places an unfair burden on low-income earners.

Some banking stakeholders, however, said the fee increase was inevitable, though concerns remain about its scale and timing given broader economic pressures.

The persistence of ATM withdrawals contrasts with the growth of electronic payment channels.

While point-of-sale transactions continued to dominate in absolute value — rising to ₦147.2 trillion in the first half of 2025 — the pace of growth in ATM withdrawals was significantly faster.