Nigerians withdrew ₦36.3 trillion through automated teller machines (ATMs) in the first half of 2025 as the economy continued to rely on physical cash despite higher withdrawal charges introduced by the monetary authorities.
Data released by the Central Bank of Nigeria (CBN) show that cash withdrawals between January and June 2025 rose sharply compared with the same period of the previous year, indicating that the revised ATM pricing structure implemented in March had limited impact on consumer behaviour.
The surge was evident in both value and volume with ATM transaction counts rising sharply over the six-month period. The increase indicates that higher withdrawal costs did little to alter cash usage patterns as individuals and businesses continued to rely on physical cash for routine transactions despite the expansion of electronic payment alternatives.
Under the revised framework, customers using another bank’s ATM incur higher charges per withdrawal, while transactions carried out at offsite ATMs attract additional fees.
The CBN said the adjustments were necessary to address rising operating costs and improve service efficiency across the banking system.
Despite the higher charges, withdrawal activity gathered pace as the year progressed. Cash usage strengthened in both the first and second quarters, with transaction values rising steadily month by month before easing slightly toward the end of June. The pattern suggests that demand for physical cash remained resilient across households and businesses.
The sustained growth in ATM usage has drawn criticism from labour unions and consumer advocacy groups, who argue that higher charges disproportionately affect low-income earners and cash-dependent segments of the economy.
Some stakeholders have also raised concerns about the timing of the fee increase amid broader cost-of-living pressures.
Banking industry participants, however, maintain that the review was unavoidable given infrastructure costs and inflationary pressures, though debate continues around the scale of the charges and their broader economic impact.
The strong growth in ATM withdrawals stands in contrast to the expansion of digital payment channels. While point-of-sale and other electronic transactions continue to account for a larger share of transaction value overall, the pace of growth in cash withdrawals highlights the structural challenges facing Nigeria’s push toward a less-cash economy.
Overall, the latest figures suggest that physical cash remains deeply embedded in economic activity, with higher transaction costs proving insufficient to materially alter usage patterns in the short term.
