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Student Village Academy Forums Money / Savings ATM Withdrawals Decline as POS Soar to ₦223 Trillion in 2024

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      Blessing
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      Point of Sale (POS) terminals processed a staggering ₦223.27 trillion in transactions in 2024 — more than double the ₦110.35 trillion recorded in 2023 — marking a major shift in consumer payment preferences in Nigeria.

      This significant increase, revealed in the Central Bank of Nigeria’s (CBN) 2024 Quarterly Statistical Bulletin, reflects a growing national pivot from Automated Teller Machine (ATM) withdrawals to more convenient POS platforms for financial transactions.

      POS Transactions Surging, ATM Usage Sluggish

      POS transaction volumes jumped from 9.85 billion in 2023 to 13.08 billion in 2024 — a 32.7% year-on-year increase. In contrast, ATM transactions rose only slightly, from 1.012 billion to 1.022 billion.

      The value of ATM withdrawals also showed minimal growth, increasing from ₦28.21 trillion in 2023 to ₦29.12 trillion in 2024, indicating waning reliance on physical cash withdrawals. Meanwhile, POS transaction values climbed steadily month-by-month throughout the year.

      Monthly Breakdown of POS vs ATM Transactions

      January: POS – ₦11.50tn (up from ₦5.28tn); ATM – ₦2.15tn (down from ₦3.24tn)
      February: POS – ₦12.46tn (from ₦7.38tn); ATM – ₦1.72tn (from ₦1.77tn)
      March: POS – ₦14.73tn (from ₦10.62tn); ATM – ₦1.60tn (from ₦2.16tn)
      April: POS – ₦13.74tn (from ₦8.55tn); ATM – ₦1.81tn (from ₦2.41tn)
      May: POS – ₦13.91tn (from ₦8.30tn); ATM – ₦2.49tn (from ₦2.62tn)
      June: POS – ₦19.57tn (from ₦8.31tn); ATM – ₦2.45tn (steady)
      July: POS – ₦15.24tn (from ₦8.30tn); ATM – ₦3.21tn (from ₦2.24tn)
      August: POS – ₦18.90tn (from ₦9.10tn); ATM – ₦2.21tn (from ₦2.14tn)
      September: POS – ₦19.69tn (from ₦9.40tn); ATM – ₦2.30tn (from ₦1.99tn)
      October: POS – ₦22.27tn (from ₦10.60tn); ATM – ₦1.93tn (from ₦2.54tn)
      November: POS – ₦29.42tn (from ₦11.28tn); ATM – ₦3.35tn (highest in 2024)
      December: POS – ₦31.84tn (from ₦13.20tn); ATM – ₦3.91tn (highest in 2024)

      These numbers show that while ATM withdrawals reached their peak in December, they failed to match the dramatic surge in POS transactions.

      Why POS is Winning
      The expanding agent banking network has made POS services widely available, even in remote communities, allowing faster and easier access to financial services. Compared to ATMs — which frequently experience outages and cash shortages — POS agents have become a more reliable option for Nigerians.

      However, the rapid rise in POS usage hasn’t come without challenges. Increased service charges, fraud, and regulatory concerns have also spiked.

      Rising POS Charges and Cash Scarcity
      In December 2024, POS agents doubled their fees — up to ₦200 per ₦5,000 withdrawal — citing severe cash shortages. Banks’ ATMs were often empty, and customers who managed to get into banking halls were limited to withdrawals of just ₦10,000 or ₦20,000.

      This situation persisted despite CBN warnings. The apex bank sanctioned nine commercial banks — including Fidelity Bank, First Bank, Zenith Bank, UBA, and Sterling Bank — for failing to ensure ATM cash availability during the festive season. Each bank was fined ₦150 million, totaling ₦1.35 billion in penalties. The fines were debited directly from their CBN accounts.

      Even after the holidays, high POS charges persisted, worsened by the implementation of the ₦50 Electronic Money Transfer Levy (EMTL) by the Federal Inland Revenue Service (FIRS) for every inflow of ₦10,000 and above.

      This EMTL was enforced across fintech platforms like Moniepoint, Opay, and Kuda — which collectively dominate 70% of Nigeria’s POS agent market.

      Rising POS Fraud and CBN’s Response
      Alongside these issues, fraud through POS terminals also surged. The FITC Fraud and Forgeries Report showed a 31.12% increase in POS fraud in Q1 2024 compared to Q4 2023.

      Q4 2023: 2,683 POS fraud cases
      Q1 2024: 3,518 POS fraud cases

      POS-related fraud accounted for 30.67% of all recorded fraud cases (11,472) in Q1 2024.
      Most fraudulent activities in Q2 2024 involved POS systems, mobile and computer devices.

      To address these threats, the CBN introduced stricter controls in 2024:

      Individual customers: ₦100,000 daily cash-out limit
      POS agents: ₦1.2 million daily cash-out limit
      Weekly withdrawal limit for customers: ₦500,000
      All transactions must be routed through float accounts linked to principal institutions.
      Mandatory connection of terminals to the Payments Terminal Service Aggregator (PTSA)
      Daily transaction reports to be electronically submitted to the Nigeria Inter-Bank Settlement System (NIBSS)
      Principals held accountable for agent activities — including fraud
      CBN to conduct random oversight and backend checks

      Final Word
      The data is clear: Nigerians are embracing POS platforms at an unprecedented pace due to their convenience and accessibility. While ATM services remain essential, their role in Nigeria’s payment landscape is shrinking fast.

      However, the transition to digital payments comes with growing pains — from inflated charges to rising fraud. As CBN tightens regulations and banks are held accountable, the real test will be whether financial institutions can balance innovation, inclusion, and security in a rapidly evolving ecosystem.

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