Stories by Seun Ibiyemi
Nigerians have defied higher transaction costs to withdraw a staggering ₦36.34 trillion via Automated Teller Machines (ATMs) in the first half of 2025.
This figure represents a massive 197.66 percent year-on-year increase from the ₦12.21 trillion recorded in the same period of 2024, according to the latest data from the Central Bank of Nigeria (CBN).
The surge underscores the deep-seated resilience of cash in the economy, occurring even as regulators implemented new fee structures intended to discourage physical cash usage.
The appetite for cash was evident not just in value but also in frequency. Transaction volumes mirrored the monetary spike, with 858.80 million ATM withdrawals processed between January and June 2025.
This is a significant leap from the 496.47 million transactions recorded in the corresponding period of 2024, marking a 72.98 percent increase. These figures suggest that while the cost of accessing cash has risen, the public demand has largely ignored the price signal, with Nigerians visiting ATMs over 362 million times more than they did the previous year.
A closer look at the quarterly performance reveals an accelerating trend. In the first quarter of 2025 alone, withdrawals hit ₦15.97 trillion, dwarfing the ₦5.46 trillion seen in Q1 2024 a jump of nearly 193 percent.
This momentum intensified in the second quarter, where withdrawals between April and June climbed to ₦20.36 trillion, more than tripling the ₦6.75 trillion recorded a year earlier.
Monthly data followed a similar upward trajectory, peaking at ₦7.44 trillion in May before a slight moderation to ₦6.55 trillion in June.
While digital payment channels also expanded, the pace of cash withdrawal growth was notably distinct. Point-of-Sale (POS) transactions remained dominant in absolute terms, rising from ₦85.91 trillion in the first half of 2024 to ₦147.20 trillion in the first half of 2025.
However, the growth rate of ATM usage far outstripped that of POS channels. This disparity highlights a persistent reliance on physical currency for daily economic activities, challenging the efficacy of ongoing policy efforts designed to accelerate the nation’s shift toward a fully digital payment ecosystem.