THE value of cash withdrawals through automated teller machines (ATMs) surged sharply in the first half (H1) of 2025, almost tripling year on year to N36.34 trillion, from N12.21 trillion in the corresponding period of 2024, according to data from the Central Bank of Nigeria (CBN).

The skyrocketing value of ATM coincides with the rising charges introduced by the CBN.

Figures from the CBN’s quarterly statistical bulletin show that between January and June 2025, Nigerians withdrew a total of N36.34 trillion via ATMs, representing an increase of N24.13 trillion or 197.66 percent compared with the same period a year earlier. The jump occurred despite regulatory efforts to discourage heavy cash usage through higher withdrawal charges and tighter monetary conditions.

In terms of volume, ATM transactions also rose significantly. Nigerians carried out 858.80 million withdrawals over the period, up from 496.47 million transactions recorded in the same period of 2024. The additional 362.34 million withdrawals represent a growth rate of 72.98 per cent, suggesting that demand for cash remained resilient despite increased costs.

The spike in ATM usage followed the introduction of a revised fee regime by the CBN, which took effect in March 2025. Under the new rules, customers withdrawing cash from another bank’s ATM are charged N100 per N20,000, while offsite ATMs located in places such as shopping malls, fuel stations and airports attract additional surcharges of up to N500 per N20,000 withdrawn.

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The new framework also scrapped the previous policy that allowed customers three free monthly withdrawals from other banks’ ATMs, further raising the cost of accessing cash. The apex bank said the review was necessitated by rising operational costs and the need to improve efficiency in ATM services.

In its circular, the CBN stated that the revised charges were designed to accelerate ATM deployment and ensure appropriate pricing of services across the banking industry, with the changes taking effect from March 1, 2025.

Quarterly data underline the scale of the increase in ATM usage. In the H1 of 2025, withdrawals amounted to N15.97tn, compared with N5.46 trillion in the same quarter of 2024, representing a rise of N10.52 trillion or 192.9 per cent. Transaction volumes nearly doubled, increasing from 210.66 million to 411.42 million withdrawals.

The upward trend intensified in the second quarter (Q2). Between April and June 2025, ATM withdrawals reached N20.36 trillion, more than three times the N6.75 trillion recorded in the Q2 of 2024. This translated to a growth of about 201.7 percent, while transaction volumes rose by 56.5 percent to 447.39 million.

A month-by-month breakdown shows consistent expansion throughout the period. Withdrawals in January 2025 stood at N4.81 trillion, more than double the N2.15 trillion recorded in January 2024, while transaction volumes rose by about 111.5 percent. February saw withdrawals climb to N5.40 trillion from N1.72 trillion a year earlier, and March recorded N5.76 trillion compared with N1.60tn in March 2024.

The Q2 sustained this momentum. April withdrawals rose to N6.38 trillion from N1.81 trillion in April 2024, while May recorded the highest monthly value at N7.44 trillion, up from N2.4 trillion a year earlier. Although withdrawals eased slightly in June to N6.55 trillion, they still far exceeded the N2.45 trillion recorded in June 2024.

Despite the strong performance of ATMs, point-of-sale (POS) transactions continued to dominate in absolute terms. POS transaction values increased from N85.91tn in the H1 of 2024 to N147.20 trillion in the H1 of 2025, while volumes rose from 6.40 billion to 7.72 billion transactions. However, ATM withdrawals grew at a faster pace, underscoring the persistent role of cash in everyday transactions.

The CBN clarified that banks were not allowed to charge more than the prescribed ATM fees, although they might reduce charges based on their business strategies. It warned that any institution found violating the directive would face sanctions.

The apex bank also advised customers to use their own banks’ ATMs to minimise charges and encouraged greater use of alternative payment channels such as mobile banking, POS terminals and electronic transfers.