ATM Withdrawals Hit ₦36.34trn in H1 2025 as Transactions Surge 276% in Volume, 581% in Value over 5 Years
Lagos: The Central Bank of Nigeria (CBN) has urged a balanced approach to cash and digital payments, warning that rural communities, informal traders, and small businesses must not be excluded from the evolving financial ecosystem.
CBN Governor, Mr Olayemi Cardoso, speaking through his Special Adviser on Operational Risk Management, Mr Fatai Karim, at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, stressed that cash remains vital to economic inclusion even as electronic transactions continue to expand rapidly.
“Cash remains king. It is critical that this is maintained,” Cardoso declared, noting that while digital payments are reshaping commerce, they cannot fully replace cash in everyday transactions, particularly in less urbanised areas.
Nigeria’s payment ecosystem has grown significantly over the past decade, driven by reforms, technology, and changing consumer behaviour.
Electronic transaction volumes rose 276 per cent and values 581 per cent in the past five years, while ATM withdrawals alone reached ₦36.34 trillion in the first half of 2025, underscoring Nigerians’ continued reliance on cash.
Cardoso highlighted that currency in circulation rose 4.6 per cent in 2025, reflecting sustained demand for cash alongside digital options. He emphasised that ATMs, POS terminals, mobile wallets, and contactless solutions are not just digital tools but also channels that improve access to physical cash.
“Electronic and digital channels decentralise and stabilise cash distribution, reduce operational bottlenecks, and enhance client experience,” he said.
The CBN is reviewing policies on the ratio of bank-issued cards to ATMs, with clarity expected after stakeholder consultations. Cardoso stressed that cash availability depends not only on issuance but also on logistics, infrastructure, and coordination among financial institutions.
He traced the evolution of money from commodities to coins, paper, cards, and digital currencies, concluding: “The future of currency is both digital and physical.”
Also speaking, Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), said cash and digital payments must coexist as pillars of the financial system. He noted that electronic transactions surpassed 60 billion in 2025, but cash remains essential for low-value transactions in informal and rural sectors.
Similarly, Mr Abraham Aziegbe, Chairman of CHBO, represented by First Vice Chairman Mr Tolulope Ogundipe, echoed the call for balance, stressing that cash remains indispensable in rural and underserved areas despite rapid digital growth.
He noted that ATM withdrawals hitting ₦36.34 trillion in the first half of 2025 underscored Nigerians’ reliance on cash for resilience and trust.
The consensus from the conference is clear: Nigeria’s financial system must integrate cash and digital payments to protect public confidence, ensure inclusion, and strengthen resilience. Collaboration, innovation, and effective oversight will be key to building a robust ecosystem where both cash and digital channels thrive side by side.
