Nigerians are withdrawing more cash than ever, defying the Central Bank of Nigeria’s (CBN) attempt to curb cash usage through higher ATM charges.

Data from the CBN’s quarterly statistical bulletin show that ATM withdrawals surged to ₦36.34 trillion in the first half of 2025, nearly tripling the ₦12.21 trillion recorded in the same period of 2024.

The ₦24.13 trillion increase represents a year-on-year jump of 197.66 per cent, underscoring the resilience of cash usage even as regulators tighten monetary policy and raise transaction costs.

Transaction volumes also rise sharply

Beyond value, transaction volumes climbed significantly. Nigerians carried out 858.80 million ATM withdrawals between January and June 2025, compared with 496.47 million transactions a year earlier.

The increase of 362.34 million withdrawals translates to a growth rate of 72.98 per cent. The data suggest that higher fees did little to discourage cash access, particularly for daily transactions and small-value withdrawals.

CBN’s revised ATM fee regime

The surge comes amid the CBN’s revised ATM fee framework, which took effect in March 2025. Under the policy, customers using another bank’s ATM now pay ₦100 per ₦20,000 withdrawal, while offsite ATMs in locations such as malls, fuel stations, and airports attract additional surcharges of up to ₦500 per ₦20,000.

The apex bank also scrapped the previous allowance of three free monthly withdrawals on other banks’ ATMs, citing rising operational costs and the need to improve efficiency across the banking system.

ATM usage accelerated throughout the year. In the first quarter of 2025, withdrawals totalled ₦15.97 trillion, up from ₦5.46 trillion in the same quarter of 2024, representing a 192.9 per cent increase.

Transaction volumes nearly doubled, rising by 95.3 per cent. The second quarter recorded even stronger growth. Withdrawals jumped to ₦20.36 trillion from ₦6.75 trillion a year earlier, while transaction volumes rose by 56.5 per cent to 447.39 million.

Monthly figures reveal consistent expansion, with May posting the highest withdrawal value at ₦7.44 trillion, almost three times the figure recorded in May 2024.

While point-of-sale (POS) transactions continue to dominate in absolute terms, ATM withdrawals are growing at a faster pace. POS transaction values increased from ₦85.91 trillion in the first half of 2024 to ₦147.20 trillion in the same period of 2025, but the growth rate lagged behind that of ATM usage.

According to a report by Punch, this trend highlights the enduring role of cash in daily economic activity, particularly among low-income earners and informal businesses.

Public pushback and policy concerns

The revised fees have sparked backlash. FinTech executive Tope Dare warned that the policy disproportionately affects low-income Nigerians who withdraw smaller amounts more frequently.

Consumer rights group SERAP also sued the CBN, describing the charges as unfair and exploitative.

Labour unions echoed similar concerns, while the Bank Customers Association of Nigeria acknowledged the inevitability of fee increases but questioned their timing and scale.

CBN data show that cash outside banks climbed to ₦4.91 trillion in November 2025, with over 93 per cent of total currency in circulation held outside the banking system. Economists warn that this trend weakens monetary control, limits deposit mobilisation, and complicates inflation management.

ATM withdrawal limits increases

Despite reforms and higher fees, the numbers suggest one clear reality: Nigeria remains a cash-driven economy, and changing that habit may require more than pricing pressure alone.

The move comes after the apex bank increased the daily withdrawal limits for ATMs across the country. The financial sector regulator revised its cash withdrawal and deposit rules, effective January 1, 2026.

In a circular signed by Rita Sike, Director of the Financial Policy & Regulation Department, the apex bank said the new rules are aimed at addressing the high cost of cash handling, addressing security risks, and curbing money laundering while encouraging wider use of electronic payment channels.

Under the new guidelines, banks and other financial institutions are expected to comply with the updated cash-related rules, which overhaul several existing policies.

Also, CBN increased daily withdrawal limits from Point of Sale (PoS) as it pushes for reforms in the financial services sector.