Business

Cash rush: ATM withdrawals jump 198% to N36tn

Published

1 month ago

January 19, 2026

Nigerians continued to lean heavily on cash withdrawals despite higher automated teller machine charges introduced by the Central Bank of Nigeria, as the value of ATM transactions jumped to N36.34tn in the first half of 2025, reinforcing the resilience of cash usage in the economy.

Data from the CBN quarterly statistical bulletin show that ATM withdrawals between January and June 2025 amounted to N36.34tn, nearly tripling the N12.21tn recorded in the corresponding period of 2024.

This represents an increase of N24.13tn, equivalent to a 197.66 per cent year on year rise, even as regulators moved to discourage excessive cash usage through revised fees and tightening monetary policy.

According to the data on the transaction volumes, Nigerians carried out 858.80 million ATM withdrawals in the first six months of 2025, compared with 496.47 million transactions in the same period of 2024. The increase of 362.34 million transactions represents a growth rate of 72.98 per cent, indicating that higher charges did little to dampen demand for cash.

The sharp rise comes against the backdrop of the CBN’s revised ATM fee regime, which took effect in March 2025. Under the new framework, customers using another bank’s ATM now pay N100 per N20,000 withdrawn, with additional surcharges of up to N500 per N20,000 on offsite ATMs such as those located in malls, fuel stations, and airports.

The removal of the previous allowance of three free monthly withdrawals on other banks’ ATMs further increased the cost of accessing cash. The apex bank attributed the review to rising costs and the need to enhance efficiency in ATM operations.

The circular read, “In response to rising costs and the need to improve efficiency of Automated Teller Machine (ATM) services in the banking industry, the Central Bank of Nigeria has reviewed the ATM transaction fees prescribed in Section 10.7 of the extant CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, 2020 (the Guide).

“This review is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service. Accordingly, banks and other financial institutions are advised to apply the following fees with effect from March 1, 2025.”

Despite these changes, quarterly data show that ATM usage accelerated markedly in 2025. In the first quarter, ATM withdrawals totalled N15.97tn, compared with N5.46tn in the first quarter of 2024. This reflects an increase of N10.52tn, or about 192.9 per cent.

Transaction volumes in the quarter rose from 210.66 million to 411.42 million, an increase of 200.76 million transactions, equivalent to roughly 95.3 per cent growth.

The momentum strengthened further in the second quarter. Between April and June 2025, Nigerians withdrew N20.36tn from ATMs, more than three times the N6.75tn recorded in the second quarter of 2024. The increase of N13.61tn represents a growth of about 201.7 per cent.

Volumes also rose from 285.81 million transactions in the second quarter of 2024 to 447.39 million in the same period of 2025, an increase of 161.57 million transactions or about 56.5 per cent. A closer look at the monthly figures highlights how consistently ATM usage expanded throughout the six-month period.

In January 2025, ATM withdrawals stood at N4.81tn, compared with N2.15tn in January 2024. Transaction volumes more than doubled, rising from 69.62 million to 147.24 million, a year-on-year increase of about 111.5 per cent.

February saw withdrawals rise to N5.40tn, up from N1.72tn a year earlier, representing growth of about 215 per cent. Transaction volumes climbed from 73.16 million to 134.59 million, an increase of roughly 84 per cent.

In March, ATM withdrawals reached N5.76tn, compared with N1.60tn in March 2024, translating to a growth of about 261 per cent, while volumes increased by about 91 per cent to 129.59 million transactions.

The second quarter sustained the upward trend. In April 2025, withdrawals rose to N6.38tn from N1.81tn in April 2024, an increase of about 252 per cent, with transaction volumes growing by roughly 77 per cent.

May recorded the highest monthly withdrawal value in the period at N7.44tn, up from N2.49tn a year earlier, representing a growth of about 199 per cent. Volumes also increased from 92.97 million to 160.10 million transactions, a rise of about 72 per cent.

In June, ATM withdrawals eased slightly to N6.55tn but still far exceeded the N2.45tn recorded in June 2024. The year-on-year increase of about 167 per cent was accompanied by a rise in transaction volumes from 113.17 million to 146.27 million, representing growth of about 29 per cent.

The persistence of high ATM usage contrasts with the steady expansion of point-of-sale transactions, which continue to dominate in absolute terms. POS transaction values rose from N85.91tn in the first half of 2024 to N147.20tn in the first half of 2025, while volumes increased from 6.40 billion to 7.72 billion transactions.

However, the pace of growth in ATM withdrawals outstripped that of POS channels, highlighting the enduring role of cash in daily economic activity.

In a FAQ document published by the apex bank on its website, which provides further information on the CBN’s directive on ATM withdrawal fees, the apex bank clarified that financial institutions are not permitted to charge more than the prescribed fees, although banks may reduce charges depending on their business strategy.

Any bank found in violation of the directive, including compelling customers to withdraw less than N20,000 per transaction despite sufficient funds in their account, will be sanctioned accordingly.

To minimise transaction fees, the CBN has advised customers to prioritise withdrawals from their bank’s own ATMs. It also encouraged Nigerians to explore alternative payment methods such as mobile banking applications, POS transactions, and electronic transfers to reduce reliance on cash withdrawals.

A FinTech Executive and Techpreneur, Tope Dare, earlier warned that the CBN’s revised ATM withdrawal fees, set to take effect on March 1, 2025, will hurt low-income Nigerians while benefiting wealthier individuals.

“This policy ultimately favours those who can afford to withdraw larger sums, while the average Nigerian, who withdraws in smaller amounts, bears the brunt. For many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Now, they face unfair charges that wealthier Nigerians can easily avoid,” he said.

Also, consumer rights group Socio-Economic Rights and Accountability Project took legal action against the CBN, calling the policy “unfair, unreasonable, and unjust.” SERAP argued that the revised fees violate sections of the Federal Competition and Consumer Protection Act, which aims to prevent exploitation and ensure fair market practices.

In a statement signed by the TUC President, Festus Osifo, and Secretary-General, Nuhu Toro, the union urged all well-meaning Nigerians to reject what it described as an exploitative policy and demand its immediate reversal.

“Our attention has been drawn to a circular from the CBN announcing an increase in ATM transaction fees, effective March 1, 2025. We say unequivocally: enough is enough. The Nigerian workers and the general public have endured relentless economic hardship under this administration.

“Every day brings a new burden—higher taxes, rising electricity tariffs, exorbitant call and data charges, and now, increased ATM fees. This government has failed to cushion the effects of its harsh economic policies, and the patience of Nigerians is wearing thin.”

However, the Chairman of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, said the increase was not such a bad idea, given the state of the economy, but expressed concerns about the rate of increase.

He said, “It should have been expected. Other places have increased their fees. The only thing one can talk about is the extent of the increase. Electricity, telephones, and even the open market have recorded increases in prices. The issue should not be the increase but the extent of it. Is it reasonable? Is it affordable at this point in time?

“It is not only banking services that are increasing fees. If you ask me, I will say let’s move on. Someday, these things will adjust themselves.”

Also in October 2025, the CBN directed Deposit Money Banks and other financial institutions to refund customers for failed ATM transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.

According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.

The guidelines also overhauled ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30 per cent compliance in 2026, 60 per cent in 2027, and full compliance by 2028. Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.

As ATMs become more efficient, The PUNCH observed an increase in cash outside banks. The PUNCH earlier reported that Nigerians withdrew a net N264.48bn from the banking system in November 2025, pushing the total cash held outside banks to N4.91tn, according to the CBN’s latest money and credit statistics data.

This represented a sharp month-on-month rise from N4.65tn recorded in October 2025, highlighting the continued preference for physical cash in daily transactions despite efforts to deepen electronic payment channels.

The data showed that currency in circulation as a whole also increased in November 2025, rising to N5.26tn from N5.06tn in October. This means the share of total currency circulating outside the banking sector climbed to about 93.34 per cent in November from 91.87 per cent in October.

The growing preference for physical cash raises several macroeconomic concerns. High out-of-bank cash weakens monetary control, reduces deposit mobilisation, creates liquidity constraints for banks, and encourages informal transactions that escape regulatory visibility.

It also complicates inflation targeting, as large cash holdings outside the banking system blunt the effectiveness of policy. The sharp rise in currency outside banks comes at a time when the CBN is focused on tightening liquidity to curb inflation.

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Business

GenCos deny NLC’s ‘extortion’ claims, warn of looming power crisis

Published

9 hours ago

February 18, 2026

Newsbreak365_Admin

Power generation companies in Nigeria have dismissed allegations by the Nigeria Labour Congress that electricity firms were engaged in “institutionalised extortion,” describing the claims as misleading and damaging to efforts aimed at stabilising the country’s fragile power sector.

The reaction was contained in a statement issued on Wednesday by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji.

Ogaji faulted recent remarks by the President of the NLC, Joe Ajaero, saying they did not reflect the realities of the Nigerian Electricity Supply Industry.

Ogaji stated, “While we acknowledge the frustrations of Nigerians regarding unstable electricity supply, we must firmly reject the characterisation of the sector’s challenges as robbery and a grand deception. Such allegations are a misrepresentation of the facts and a disservice to ongoing efforts to stabilise the power sector.”

According to the association, power generation companies remain the most financially exposed segment of the electricity value chain because they generate electricity that is not fully paid for due to revenue shortfalls across the market.

She added, “GenCos face the greatest risk in the electricity value chain, with outstanding unpaid invoices now exceeding N6tn. Rather than castigate operators, attention should be focused on addressing the liquidity crisis that threatens the sustainability of electricity supply.”

The association also rejected claims that proposed government financial support for the sector amounted to a political arrangement, insisting that intervention funds were necessary to prevent further deterioration.

“We strongly refute the insinuation that proposed government support for the sector is a clandestine plan to settle the boys. Such claims are baseless and undermine the critical liquidity interventions required to keep the lights on,” the statement added.

The GenCos said they were open to scrutiny and willing to subject their financial records to independent forensic examination if required.

“If the NLC or any other institution considers it necessary, our books are available for any form of investigation. What is important is to identify the real causes of the sector’s challenges and work collaboratively toward sustainable solutions,” Ogaji said.

The development follows recent comments by the NLC accusing electricity firms of exploiting Nigerians through tariff adjustments and alleged hidden subsidies.

The power generators urged organised labour to engage constructively with stakeholders, warning that inflammatory rhetoric could discourage investment and worsen electricity shortages.

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Business

No power, no growth, Dangote warns govt

Published

10 hours ago

February 18, 2026

Newsbreak365_Admin

The President and Chairman of Dangote Industries Limited, Aliko Dangote, on Tuesday called on the Federal Government to urgently convene a national retreat to resolve Nigeria’s persistent electricity crisis, warning that widespread power outages could undermine the country’s industrialisation drive and economic growth.

Dangote made the appeal at the official national launch of the National Industrial Policy 2025 in Abuja, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future.”

The policy emerged against the backdrop of a weak manufacturing sector, which, due to poor electricity supply, high production costs, limited access to finance, infrastructure deficits, and heavy reliance on imports, has been constrained.

The event was attended by top government officials, captains of industry, and development partners, with President Bola Tinubu represented by Vice President Kashim Shettima.

In his goodwill message, Dangote stressed that without stable electricity, Nigeria would struggle to create jobs, drive industrial productivity, or achieve sustainable economic growth.

“One of the things that I want to advise Your Excellency, Mr Vice President, is to call a national forum where we will have a one- or two-day retreat and resolve the issues of power. Because without power, Mr Vice President, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth. So we must make sure that we tackle this issue,” he said.

His comments were greeted with applause from participants, including the Vice President. Dangote noted that while government policies to support industrialisation were commendable, the electricity challenge remained the single most critical constraint to manufacturing and job creation.

“We know what you call industrial policy; it is actually very, very important because the government cannot create jobs. They can only facilitate. And I think they have already given us whatever we need to create jobs. The policies that they have put in place are very good. Nigeria is a very big market. Not only that, this is a market where we are supposed to be serving other African nations,” he added.

However, he stressed that policy incentives alone were insufficient without strong infrastructure and protection of domestic industries.

“But one thing that we need is not only the policy. The policy is there. If you look at the incentives that we have for people to invest in Nigeria, actually, they are even more than what we need. The only thing that is remaining is the protection of industries.”

According to him, excessive importation remained a major threat to local manufacturing. “Even if you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” Dangote stated.

The billionaire industrialist lamented that many manufacturers now spend more on power generation than on production due to erratic electricity supply.

“So, people who are buying diesel, I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power. Some factories spend more money generating electricity than producing goods. You have to set up your own power plant and also a standby. That does not make sense. There is nowhere you can get prosperity that way,” he added.

Dangote’s remarks came amid a recent five-day power supply disruption linked to gas maintenance activities, which triggered widespread blackouts across several parts of the country and heightened concerns among manufacturers and businesses.

Seven power plants across Nigeria experienced gas supply constraints between February 12 and 15, 2026, as Seplat Energy shut down a major facility for scheduled maintenance, leading to nationwide generation shortfalls.

His comments reflected ongoing concerns in the organised private sector following the recent gas supply maintenance shutdown that affected power generation and led to load shedding across the country.

Stakeholders have repeatedly warned that frequent outages are forcing companies to rely on diesel and alternative energy sources, significantly raising production costs and contributing to inflation.

Dangote also highlighted the dominance of the private sector in Nigeria’s economy, urging stronger collaboration between government and businesses. “Nigeria is the only country in Africa where the private sector is bigger than the government. When you look at GDP, the private sector contributes almost 90 per cent, compared to the government’s 10 per cent,” he said. “We have what it takes to create massive consumption, massive industry, and disposable income.”

He added that entrepreneurs must also support national development by paying taxes and complying with regulations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business. Today, the government makes more money in our cement business than anybody. But that is okay, so far they allow us to expand and prosper.”

Dangote further said recent economic reforms had improved investor confidence and currency stability. “With the policies that this government has implemented, people are beginning to see the results. Manufacturers are happy. The stability of the currency is encouraging investors to come into Nigeria,” he said.

He projected that the naira could strengthen further if import dependence is reduced. “We should manufacture what we consume. That is the only way to create jobs. If we block unnecessary imports and support local production, the naira will get stronger,” he said.

He further urged the government to strengthen policies protecting domestic manufacturers from dumping and unfair competition. “If you allow imports, take into consideration our own constraints — high interest rates, infrastructure deficits, and electricity challenges. If dumping is allowed, nobody will survive,” he said.

Dangote added that the current policy direction was already attracting investors and boosting confidence in the Nigerian economy.

“The trajectory that we are on now is very high. Many people are trying to invest in Nigeria. The only thing that the government must emphasise is the protection of local industries. Once we do that, we will create jobs and reduce the burden on the government.”

He concluded by reiterating the need for urgent reforms in the power sector. “It takes a truly patriotic person to say, I love to produce diesel, but if I have my way, I would rather there is constant power, and I will not produce diesel again,” he said.

Nigeria has continued to grapple with electricity supply challenges, with power generation frequently disrupted by gas shortages, infrastructure vandalism, and maintenance shutdowns. The recent gas maintenance exercise led to a temporary drop in generation capacity and widespread outages, affecting households, manufacturers, and businesses.

Experts say a stable power supply remains critical to the success of the National Industrial Policy 2025, which seeks to boost local production, reduce imports, and position Nigeria as a manufacturing hub in Africa.

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Business

Naira could hit N1,100 to $1 in 2026, says Dangote

Published

10 hours ago

February 18, 2026

Newsbreak365_Admin

According to Channels TV, Dangote made the remarks on Tuesday during the launch of the Nigeria Industrial Policy in Abuja, an event attended by Vice President Kashim Shettima and other dignitaries.

While the naira currently trades around ₦1,300 to a dollar, Dangote said government reforms signal better days ahead.

“I mean, today, if you look at it, Your Excellency, I believe with the policies that you have implemented in government, people now have started seeing the result, and manufacturers are very, very happy,” he said.

He added, “Today, the dollar is N1,340. Mr Vice-President, I can assure you that, with what I know, by blocking all this importation, the currency this year will be as low as N1,100 if we are lucky.

“The only thing is for, maybe, the government to stop the naira from getting stronger so that they will keep collecting more naira.

“But it’s a catch-22 situation where, now, if the naira gets stronger, it means that everything will go down. Everything will go down because we are an import-based country, which we shouldn’t be. What we should be doing is manufacturing all the things that we need.”

Dangote also called for stronger protection for local investors through incentives and infrastructure, highlighting power supply as a persistent challenge.

“While the policy is in order, it must be backed with full protection for industrialists to drive the nation’s goal for industrialisation, job creation, and economic growth,” he said.

The remarks come as Nigerian stocks continue to perform strongly.

Bloomberg reported that Nigerian equities delivered the world’s second-best dollar returns in 2026, climbing 31% and recovering $21 billion in market value lost after the naira’s sharp devaluation in 2024.

Total market capitalisation on the Lagos Exchange now stands at about $84 billion, roughly 58% higher than before the naira’s collapse.

Otedola had previously predicted that the naira could trade below ₦1,000 to the US dollar before the end of 2026, following the Dangote Petroleum Refinery reaching its full production capacity of 650,000 barrels per day.

He described the refinery’s output as “transformational for Nigeria and Africa” and said its ability to supply up to 75 million litres of Premium Motor Spirit daily would shift the country’s energy narrative and conserve foreign exchange.

“I am optimistic that the naira will strengthen meaningfully, and trading below ₦1,000/$1 before year-end is increasingly within reach,” Otedola had said.

The naira has recently strengthened, trading around ₦1,354 to the dollar at the official foreign exchange market and about ₦1,430–₦1,440 on the parallel market — its strongest levels in more than two years, according to market sources.

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