Nigerians withdrew a staggering ₦36.34 trillion from automated teller machines (ATMs) in the first half of 2025. This figure is nearly three times the ₦12.21 trillion recorded during the same period in 2024. Remarkably, this surge occurred despite the Central Bank of Nigeria (CBN) introducing higher ATM fees in March 2025. Therefore, the data highlights the public’s enduring reliance on physical cash—even as digital alternatives expand.
Not only did the value rise, but transaction volumes also jumped sharply. Nigerians made 858.8 million ATM withdrawals between January and June 2025. In comparison, they carried out just 496.47 million withdrawals in the first half of 2024—a 73% increase. This shows clearly that higher charges had little deterrent effect on cash usage frequency.
Under the revised CBN policy, customers now pay ₦100 for every ₦20,000 withdrawn from another bank’s ATM. Additionally, offsite ATMs can charge up to ₦500 per transaction. The central bank stated that rising operational costs and the need to improve ATM efficiency drove the fee hike. However, the public response defied expectations.
Withdrawals grew steadily throughout the six months. In Q1 2025, Nigerians pulled ₦15.97 trillion—almost triple the ₦5.46 trillion in Q1 2024. Then, in Q2, the total climbed further to ₦20.36 trillion, up from ₦6.75 trillion a year earlier. Month by month, the trend was consistent: January saw ₦4.81 trillion, February ₦5.40 trillion, and March ₦5.76 trillion. The peak came in May at ₦7.44 trillion, before dipping slightly to ₦6.55 trillion in June.
Critics have strongly opposed the fee increase. The Trade Union Congress called it “exploitative.” Meanwhile, the Socio-Economic Rights and Accountability Project (SERAP) filed a court challenge, arguing the policy unfairly burdens low-income earners. On the other hand, some banking experts acknowledged the fee revision was inevitable due to rising costs. Still, they expressed concern about its timing amid broader economic hardship.
Interestingly, this cash demand persists even as electronic payments grow. Point-of-sale (POS) transactions reached ₦147.2 trillion in H1 2025—remaining the dominant channel by value. However, the growth rate of ATM withdrawals Nigeria 2025 far outpaced that of digital alternatives. This contrast suggests that while Nigerians use cards for large purchases, they still prefer cash for daily needs.
In conclusion, the sharp rise in ATM withdrawals Nigeria 2025 reveals a deep-rooted cash culture that policy changes alone cannot quickly shift. As long as trust in digital systems remains uneven and informal markets thrive, physical currency will likely stay central to Nigeria’s economy—despite higher fees and official push for cashless transactions.
