Nigerians continued dependence on cash withdrawals through Automated Teller Machines (ATMs) in the first half of 2025, withdrawing ₦36.34 trillion between January and June 2025, almost three times the ₦12.21 trillion recorded in the same period last year.
Data from the Central Bank of Nigeria’s quarterly statistical bulletin show that the increase came despite a revised fee regime introduced in March, aimed at discouraging excessive cash usage.
The removal of the previous allowance of three free monthly withdrawals on other banks’ ATMs further increased the cost of accessing cash. The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.
The circular read, “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).
“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”
Withdrawals accelerated quarter by quarter despite the higher costs.
Credit: channelstv.com
