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ATM Transactions Surge 197.86% to N36.34 Trillion: Analyzing Nigeria’s H1 2025 Digital Payment Boom

Introduction

Nigeria’s financial landscape has witnessed a seismic shift in digital payments during the first half of 2025 (H1’25). According to data from the Central Bank of Nigeria (CBN), the value of transactions conducted via Automated Teller Machines (ATMs) has skyrocketed by an unprecedented 197.86% year-on-year (YoY). This surge is part of a broader trend of digital financial inclusion and the rapid adoption of cashless policies.

This article provides a comprehensive analysis of the H1’25 payment statistics, breaking down the performance of key channels including ATM, Point of Sale (PoS), Mobile Money, and Internet banking. We will explore the data, analyze the underlying drivers, and offer practical advice for navigating this evolving digital economy.

Key Points

Background

Over the last decade, the Central Bank of Nigeria (CBN) has aggressively pursued a cashless policy aimed at reducing the cost of cash management, curbing fraud, and enhancing the efficiency of the national payment system. This regulatory push, combined with the proliferation of fintech solutions and increased internet penetration, has fundamentally altered how Nigerians transact.

The first half of 2025 serves as a critical benchmark in this journey. While previous years showed steady growth in digital channels, the H1’25 data indicates an acceleration in adoption rates. The data, sourced from the CBN’s Quarterly Statistical Bulletin, highlights a transition where digital channels are no longer just alternatives to cash but the primary mode of transaction for millions of Nigerians.

Analysis of H1 2025 Payment Channels

To understand the magnitude of this digital revolution, we must dissect the performance of individual payment channels. The data reveals distinct trends across ATM, PoS, Mobile, and Web platforms.

The ATM Resurgence: A 197.86% Value Explosion

The most striking statistic from the report is the performance of ATMs. The value of transactions jumped to N36.34 trillion in H1’25 from N12.2 trillion in H1’24. This nearly threefold increase is significant given that ATMs are often viewed as a mature technology compared to newer mobile solutions.

The volume of transactions also grew by 72.9% to 858.8 million. This suggests that not only are transaction sizes increasing (likely due to inflation or higher withdrawal limits), but the frequency of ATM usage is also rising. This trend may be attributed to improved ATM network reliability, increased card issuance, or a temporary rebound in cash withdrawals following previous periods of cash scarcity.

Point of Sale (PoS): The Retail Backbone

PoS terminals remain the backbone of retail digital payments. In H1’25, the value of PoS transactions stood at N147.19 trillion, an increase of 71.3% from the N85.9 trillion recorded in the corresponding period of 2024.

The volume of PoS transactions also rose by 20.5% to 7.7 billion. This high volume indicates deep penetration into the informal sector and daily commerce. The robust growth signifies that merchants and consumers alike prefer the convenience of card-based payments for everyday purchases.

Mobile Money and Web Payments: The Digital Frontier

Mobile money continues to be a dominant force in the Nigerian financial ecosystem. The value of mobile charge transactions grew by 33.98% to N213.58 trillion, while the volume rose by 26.6% to 4.42 billion.

Meanwhile, Internet-based transactions (WebPay) saw a massive spike in value, rising by 32% to N1.09 quadrillion. However, it is worth noting that the volume of web transactions declined by 7.4% to 10.77 billion. This divergence suggests that fewer, but significantly larger, transactions are being conducted online, possibly driven by B2B payments, real estate, or high-value e-commerce.

NEFT and Cheques: Institutional Trends

Traditional institutional payment methods showed mixed results. The National Electronic Fund Transfer (NEFT) value rose by 6.8% to N391.24 trillion, though transaction volume fell by 17.4%. Similarly, cheque transactions saw modest growth in value (10.9% to N9.72 trillion) and volume (3.63% to 7.13 million). These figures suggest that while traditional bulk transfers remain significant, they are growing at a slower pace compared to real-time digital channels.

Macro-Economic Analysis: What Drives the Growth?

The reported 29.5% year-on-year growth in the total value of e-payment transactions (reaching N1.89 quadrillion) is driven by several converging factors.

1. Inflation and Currency Dynamics: The nominal increase in transaction values often correlates with rising prices of goods and services. As the cost of living increases, the monetary value of the same basket of goods rises, naturally inflating transaction statistics.

2. Infrastructure and Fintech Integration: The expansion of payment infrastructure, including the deployment of PoS terminals to remote areas and the integration of USSD banking with mobile apps, has lowered barriers to entry. Fintech companies have simplified the process of sending and receiving money, making digital transactions the default choice.

3. Regulatory Confidence: The CBN’s consistent regulation and dispute resolution frameworks have boosted consumer confidence in digital channels. The fear of electronic fraud is being mitigated by enhanced security protocols like tokenization and biometric verification.

Practical Advice for Stakeholders

Understanding these trends is vital for consumers, merchants, and financial institutions. Here is how different stakeholders can adapt to the changing landscape.

For Consumers

Security First: With the rise in digital transactions, the risk of phishing and unauthorized debits increases. Always verify merchant details before transferring funds and enable transaction alerts on all bank apps and USSD codes.

Cost Management: Be mindful of transaction fees. While ATMs offer convenience, using PoS or mobile transfers might be more cost-effective depending on your bank’s fee structure.

For Merchants and Businesses

Embrace Multi-Channel Payments: To capture the growing volume of digital spenders, businesses must accept various payment methods, including card payments, bank transfers, and mobile wallets. Relying solely on cash limits sales potential.

Reconcile Daily: With transaction volumes in the billions, reconciliation errors can be costly. Utilize automated accounting software that integrates with your payment gateways to track every Naira accurately.

Frequently Asked Questions (FAQ)

Why did ATM transactions grow by 197.86%?

The massive growth in ATM transaction value is attributed to a combination of increased transaction volumes, potentially higher withdrawal limits, and a broader economic shift where more Nigerians are utilizing banking channels for cash access rather than keeping cash on hand.

What is the difference between transaction value and volume?

Value refers to the total monetary amount moved through a channel (e.g., N36.34 trillion), while Volume refers to the number of individual transactions (e.g., 858.8 million). A high value with moderate volume indicates that large sums of money are being moved per transaction.

Is Nigeria becoming a completely cashless economy?

While the goal is a cashless society, physical cash still plays a role. However, the data from H1’25 shows that digital channels are now dominant. The rapid growth in PoS and mobile money suggests that the majority of commercial transactions are shifting away from cash.

What is a “Quadrillion” in the context of this report?

A quadrillion is a thousand trillion (10^15). The Internet (WebPay) channel recorded a value of N1.09 quadrillion, highlighting the immense volume of capital flowing through online banking and corporate payment systems.

Conclusion

The H1’25 data from the Central Bank of Nigeria paints a clear picture: the digital payment ecosystem is not just growing; it is exploding. The 197.86% surge in ATM transactions serves as a powerful indicator of this shift, alongside the massive growth in PoS and mobile money values.

For the Nigerian economy, this transition promises greater financial inclusion, improved tax collection capabilities, and a more efficient monetary system. As we move forward, stakeholders must prioritize security, infrastructure stability, and user education to sustain this impressive upward trajectory.