Nigerians Embrace ATMs Again: ₦15.98 Trillion Withdrawn as CBN Steers a Policy Shift
After a period of declining relevance, Automated Teller Machine (ATM) transactions are witnessing a remarkable resurgence across Nigeria. In the first quarter of 2025 alone, Nigerians withdrew a staggering ₦15.98 trillion, equivalent to approximately $10.83 billion, from ATMs. This represents an astonishing 192.7% increase compared to the same period in the previous year, signaling a significant shift in the nation’s financial landscape. This dramatic comeback is primarily driven by recent Central Bank of Nigeria (CBN) directives aimed at recalibrating how citizens access physical cash, nudging the country away from its long-standing reliance on PoS agents back towards an ATM-first system.
The CBN’s Strategic Pivot: Reshaping Cash Access and Costs
The remarkable rebound in ATM usage is a direct consequence of new, stringent guidelines issued by the CBN. These policies involve tightening regulatory oversight on Point of Sale (PoS) agents and mandating commercial banks to significantly increase their ATM deployment nationwide. This marks a deliberate policy pivot, aiming to reshape the dynamics of cash access in Nigeria after years where PoS terminals had largely dominated the market for small and medium-scale cash withdrawals. This shift also introduces a new cost consideration for consumers. While using your own bank’s ATM remains free, withdrawing from another bank’s ATM now incurs charges, typically per ₦20,000. To illustrate the impact, consider a scenario where someone withdraws ₦10,000 weekly. Over a year (104 withdrawals), the total withdrawn would be ₦1,040,000. Using PoS agents for this amount could cost an estimated ₦20,800 annually in fees, while using another bank’s ATM would amount to ₦10,400. Crucially, opting for your own bank’s ATM would incur zero fees, highlighting the CBN’s incentive for consumers to utilize bank-owned infrastructure.
This strategic re-emphasis on ATMs is set to fundamentally alter consumer behavior and financial transaction patterns across Nigeria. The Central Bank’s move is clearly an effort to reassert control over cash distribution channels, potentially offering more regulated and transparent service provision compared to the previously less-regulated PoS ecosystem. For millions of Nigerians, understanding these new cost structures will be crucial for managing their everyday cash needs efficiently.
The CBN’s decisive action underscores a commitment to streamlining cash access and encouraging financial prudence among consumers. This policy shift, marked by a massive surge in ATM withdrawals, signifies a new era for cash management in Nigeria, moving the nation toward a more structured and bank-centric approach to physical currency transactions.
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