Despite increased charges, ATM withdrawals soar to N15.97 trn in Q1 2025

By Seun Ibiyemi

Automated Teller Machine (ATM) transactions in Nigeria rose sharply in the first quarter of 2025, defying expectations that new cash withdrawal charges introduced by the Central Bank of Nigeria (CBN) in February would slow usage.

According to the CBN’s Quarterly Statistical Bulletin for Q1 2025, total ATM withdrawals climbed to N15.97 trillion between January and March 2025, a 192.7 per cent jump from N5.46 trillion recorded in the same period of 2024.

Transaction volumes also increased significantly, with 411.42 million withdrawals processed during the quarter, compared to 210.66 million in Q1 2024, reflecting a 95.3 per cent rise.

Interestingly, while the number of withdrawals dropped slightly month-on-month after February, the total value of cash withdrawn continued to climb, suggesting that customers were taking out larger sums per transaction to minimise the impact of the new charges.

In January 2025, ATM withdrawals were valued at N4.81 trillion from 147.24 million transactions. By February, the figure rose to N5.40 trillion, even as the number of transactions slipped to 134.59 million. 

In March, the first full month under the new withdrawal fee regime, ATM cash-outs surged further to N5.76 trillion, with transaction counts dropping to 129.59 million.

The average withdrawal per transaction climbed from about N32,660 in January to over N44,500 in March nearly double the N23,500 average recorded in March 2024.

Year-on-year comparisons highlight the scale of growth: January 2024: N2.15 trillion (69.62 million transactions), January 2025: N4.81 trillion (147.24 million transactions)

February 2024: N1.72 trillion (73.16 million transactions), February 2025: N5.40 trillion (134.59 million transactions)

March 2024: N1.60 trillion (68.88 million transactions), March 2025: N5.76 trillion (129.59 million transactions)

The surge underscores Nigerians’ continued dependence on cash, despite ongoing efforts by the CBN to promote a cashless economy. 

The trend also points to behavioural adjustments among customers seeking to reduce transaction costs while maintaining access to cash in an economy where electronic payment reliability remains inconsistent.

The sharp increase comes just weeks after the CBN reinstated ATM and over-the-counter withdrawal charges, part of its broader measures to curb excessive cash use and strengthen monetary policy transmission.