Commercial banks in Nigeria recorded a total of ₦36.34 trillion in automated teller machine (ATM) withdrawals between January and June 2025, according to data released by the Central Bank of Nigeria (CBN). This figure highlights the continued importance of cash in everyday transactions, despite the steady expansion of digital payment channels across the country.
At first glance, the number reflects scale. However, beyond the headline figure lies a deeper story about consumer behavior, economic pressure, payment preferences, and trust in financial systems. While Nigeria has made progress in electronic payments, the data shows that millions of individuals and businesses still rely heavily on physical cash to meet daily needs.
Several factors continue to drive high ATM withdrawals. First, inflationary pressure remains a key influence. As prices rise, households require more cash to cover food, transport, healthcare, and school expenses. Consequently, frequent withdrawals become necessary, especially for low and middle income earners who budget on a daily or weekly basis.
In addition, the informal sector plays a significant role. A large share of Nigeria’s economy operates outside formal banking structures. Many traders, artisans, transport operators, and small business owners still prefer cash for speed, flexibility, and ease of exchange. Therefore, even when digital tools exist, cash remains the most practical option in many communities.
Power supply challenges also contribute. While mobile banking and point of sale platforms continue to expand, unstable electricity and network disruptions often interrupt digital transactions. As a result, consumers turn to cash as a reliable alternative when electronic systems fail.
Moreover, trust continues to shape payment decisions. Although confidence in the banking system has improved, some users still prefer cash for personal control and privacy. For these individuals, withdrawing funds provides a sense of certainty, especially during periods of economic uncertainty or policy changes.
The ₦36.34 trillion figure also reflects improved access to banking services. Over the years, banks have expanded ATM networks across urban and semi urban areas. Financial inclusion initiatives have brought more Nigerians into the formal system, making cash withdrawal easier and more accessible. Consequently, higher participation naturally leads to higher transaction volumes.
However, the data also raises important policy questions. Nigeria has invested heavily in promoting cashless payments. Initiatives such as digital wallets, instant transfers, and point of sale terminals aim to reduce reliance on cash. Yet, the scale of ATM withdrawals suggests that adoption remains uneven.
Therefore, stakeholders must address the gaps. First, infrastructure needs further strengthening. Reliable electricity, stable internet connectivity, and secure payment platforms remain essential for sustained digital adoption. Without these foundations, cash will continue to dominate.
Second, public education remains critical. Many users still lack confidence in digital tools due to limited understanding or fear of fraud. Targeted financial literacy campaigns can help users better navigate electronic channels while understanding their rights and protections.
Third, transaction costs matter. Fees associated with transfers and point of sale payments often push consumers back to cash. By reviewing and reducing these costs, regulators and financial institutions can encourage wider digital usage.
Meanwhile, banks face operational implications. High ATM usage increases maintenance costs, cash logistics expenses, and security risks. However, it also presents an opportunity. By studying withdrawal patterns, banks can better design products that align with customer needs, including hybrid solutions that blend cash access with digital convenience.
Looking ahead, Nigeria’s payment landscape remains in transition. Digital transactions continue to grow, especially among younger and urban populations. At the same time, cash retains its relevance across broad segments of society. Therefore, the goal should not be elimination, but balance.
The ₦36.34 trillion withdrawn in six months tells a clear story. Nigerians are adapting to economic realities with the tools available to them. As reforms deepen and infrastructure improves, payment habits may gradually shift. Until then, cash will remain a central pillar of everyday life, even in an increasingly digital economy.
