Automated Teller Machine (ATM) withdrawals in Nigeria rose sharply to N15.97 trillion in the first quarter of 2025, despite the Central Bank of Nigeria (CBN) introducing new withdrawal fees in February.
According to the CBN’s Q1 2025 statistical bulletin, the total value of ATM withdrawals between January and March increased by 192.7% compared to N5.46 trillion recorded in Q1 2024. Transaction volumes also grew by 95.3%, reaching 411.42 million withdrawals from 210.66 million in the same period last year.
The data suggests that Nigerians withdrew significantly larger sums per transaction. In January 2025, withdrawals totalled N4.81 trillion from 147.24 million transactions. February saw a slight drop in volume to 134.59 million, but the value rose to N5.40 trillion. March recorded the highest value at N5.76 trillion, despite a further decline in transaction count to 129.59 million.
The average withdrawal per transaction rose from N32,660 in January to over N44,500 in March. Compared to March 2024’s average of N23,500, this marks an 89% year-on-year increase.
The CBN’s revised fee regime, which took effect in March, eliminated the previous allowance of three free “Not-On-Us” withdrawals and introduced charges of N100 per N20,000 at on-site ATMs and up to N500 at off-site ATMs.
Despite expectations that the new fees would discourage frequent ATM use, the data show continued reliance on cash withdrawals. Consumers appear to be consolidating their transactions to avoid multiple charges, while inflationary pressures may be driving the need for larger cash amounts.
For banks, the trend translates to increased fee revenue but also greater strain on ATM infrastructure. For households and businesses, the shift reflects rising costs and the enduring importance of cash in daily transactions.
