By Ayo Kehinde
Automated Teller Machine (ATM) transactions in Nigeria rose to ₦36.34 trillion in the first six months of the year, underscoring sustained reliance on cash withdrawals despite the introduction of additional ATM fees.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) show that transaction volumes remained strong between January and June, even after banks began applying new charges on certain ATM withdrawals following recent pricing adjustments approved by regulators.
The surge highlights continued cash usage across the economy, driven by informal sector activity, limited point-of-sale penetration in some areas, and persistent network and power challenges affecting digital payment channels.
Industry analysts say the figures suggest that fee increases have not significantly deterred ATM usage, as many consumers still view cash as the most reliable means of transaction, particularly for everyday spending.
While electronic payment channels such as transfers and POS terminals continue to grow, ATMs remain a critical component of Nigeria’s payments ecosystem.
Banks, however, face rising operational costs linked to cash handling, infrastructure maintenance, and security, factors that partly informed the recent fee adjustments.
The strong ATM activity reinforces ongoing debates around financial inclusion, cashless policy effectiveness, and the need for deeper investment in digital payment infrastructure.
