Cash Demand Soars as ATM Withdrawals Jump 198% to ₦36 Trillion
Cash usage in Nigeria has surged sharply again, with automated teller machine (ATM) withdrawals jumping by nearly 198 percent to ₦36.34 trillion in the first half of 2025, according to fresh data from the Central Bank of Nigeria (CBN).
The figure represents a dramatic increase from the ₦12.21 trillion recorded during the same period in 2024, reinforcing the reality that cash remains deeply embedded in Nigeria’s daily economic life despite ongoing efforts to promote digital payments.
The CBN data show that Nigerians made over 858 million ATM withdrawal transactions between January and June 2025, up from about 497 million transactions a year earlier. This rise in both value and volume suggests that cash withdrawals are not only increasing in amount but also in frequency, pointing to sustained reliance on physical cash across households and businesses.
Monthly trends indicate a steady climb throughout the period. ATM withdrawals rose from ₦4.81 trillion in January to ₦7.44 trillion in May, the highest monthly figure within the six-month window, before moderating slightly to ₦6.55 trillion in June. Each month recorded significantly higher withdrawals than the corresponding months in 2024, highlighting a broad-based increase rather than a one-off spike.
What makes the surge particularly striking is that it occurred despite new ATM withdrawal charges introduced by the CBN earlier in the year. Under the revised fee structure, customers are now charged ₦100 per ₦20,000 withdrawal when using another bank’s ATM, while off-site ATMs such as those located in malls, airports, and fuel stations attract additional surcharges of up to ₦500 per ₦20,000. The policy was designed to reduce pressure on cash infrastructure and accelerate the shift toward electronic payment channels.
The surge in ATM withdrawals has occurred alongside growth in electronic payments, but at a much faster pace. Point-of-sale (POS) transaction values rose to about ₦147 trillion in the same period, up from roughly ₦86 trillion a year earlier. However, the near-200 percent growth rate in ATM withdrawals far outstripped the expansion in POS usage, suggesting that cash demand is rebounding more strongly than digital alternatives.
Overall, the ₦36.34 trillion withdrawn from ATMs in just six months underscores the resilience of cash in Nigeria’s financial system. Despite regulatory pressure and expanding digital infrastructure, cash continues to play a central role in economic transactions. For policymakers, the data highlight the need for a more nuanced approach that combines infrastructure reliability, financial literacy, and inclusion with payment reforms, rather than relying solely on cost-based deterrents.
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