••CBN data reveals a significant shift towards electronic payments as ATM usage declines.
By Anastasia John E.
The Central Bank of Nigeria (CBN) has reported a dramatic surge in point-of-sale (POS) transactions, with their value exceeding ATM transactions by a staggering 603% in the first half of 2024.
During this period, Nigerians conducted transactions worth ₦85.91 trillion via POS, a significant increase from ₦48.44 trillion in the previous year. This surge in POS usage comes amid ongoing challenges such as cash shortages at ATMs and extended waiting times for withdrawals.
Conversely, ATM transactions witnessed a decline, with their value dropping from ₦14.63 trillion in 2023 to ₦12.21 trillion in the first half of 2024. The volume of ATM transactions also decreased, indicating a shift in consumer behavior towards electronic payment methods.
This trend reflects a broader digitalization of Nigeria’s payment landscape. Internet banking transactions more than doubled, while mobile payments experienced a significant surge in both value and volume.
Despite a recent 100% hike in POS charges, many Nigerians are relying heavily on POS terminals for their cash needs due to persistent cash shortages at ATMs. The CBN has imposed sanctions on banks for failing to maintain adequate cash availability, but the reliance on POS is expected to continue as digital payments gain further traction in Nigeria.
In contrast, cheque transactions continue their downward trajectory, despite a slight rise in value from ₦6.97 trillion in 2023 to ₦8.74 trillion in 2024. The volume of cheque transactions, however, fell from 8.13 million to 6.88 million, further highlighting a declining reliance on traditional banking methods.
The rapid digitalisation of Nigeria’s payment systems is evident, with POS, mobile payments, and internet banking leading the charge.
Despite the challenges posed by arbitrary fee increases, such as a 100% hike in POS charges reported in December 2024, many Nigerians have turned to POS for their cash needs, particularly as banks struggle to keep ATMs stocked.
The CBN has taken steps to address the cash availability crisis by imposing sanctions on nine banks for failing to provide adequate cash at ATMs during the festive season, resulting in fines totalling ₦1.35 billion. These fines, which will be deducted from the banks’ accounts with the CBN, signal the apex bank’s commitment to ensuring compliance with cash distribution guidelines.
Despite these measures, however, most Nigerians still rely on POS for their cash needs due to shortages at bank ATMs.
As the digital landscape continues to evolve, the reliance on POS terminals is expected to grow, reshaping the future of banking in Nigeria.
