Lagos, June 23, 2025 – Nigeria’s financial landscape is undergoing a major transformation, with Point of Sale (POS) agents now handling a record-breaking ₦223.27 trillion in transactions in 2024, even as ATM usage continues to decline steadily across the country.
According to the latest data from the Central Bank of Nigeria (CBN), total transactions via POS channels surged by over 100% from ₦110.35 trillion in 2023 to ₦223.27 trillion in 2024, driven by increasing consumer preference for agent banking, digital convenience, and more accessible financial services. The total number of POS transactions also rose significantly from 9.85 billion to 13.08 billion, representing a 32.7% increase year-on-year.
In sharp contrast, Automated Teller Machine (ATM) withdrawals have remained largely stagnant. ATM transaction volume inched up marginally from 1.012 billion in 2023 to 1.022 billion in 2024, while the total cash value withdrawn rose slightly from ₦28.21 trillion to ₦29.12 trillion. This marks a striking shift in consumer behavior, especially considering the traditional dominance of ATM withdrawals in Nigeria’s cash economy.
Data from the apex bank shows a particularly steep decline in ATM activity in January 2024, where total withdrawals dropped to ₦2.15 trillion, down from ₦3.24 trillion recorded in the same period of the previous year. Meanwhile, POS usage for the same month stood at ₦11.50 trillion and climbed further to ₦19.57 trillion by June 2024, more than double the figures recorded in June 2023.
Experts attribute the shift to a number of factors, including limited ATM cash availability, high maintenance downtime, and the ease of access offered by POS agents, particularly in underserved and rural areas. Many Nigerians now rely on neighborhood POS vendors for day-to-day cash withdrawals, bill payments, and basic banking services, rather than queuing at ATM galleries or bank halls.
Financial analysts also note that recent reforms by the CBN to expand financial inclusion and promote cashless transactions have contributed to the rapid rise of agency banking and digital payments. However, the explosion in POS usage has raised concerns about security and fraud risks.
According to financial crime reports, POS-related fraud increased by 31% in the first quarter of 2024, accounting for a significant share of the total fraud cases recorded in the banking sector. In response, the CBN has introduced stricter regulatory measures, including daily cash-out limits of ₦100,000 per customer and ₦1.2 million for agents, mandatory float accounts, and daily transaction monitoring to enhance transparency and curb financial crimes.
While POS terminals have filled a critical gap in Nigeria’s evolving payment ecosystem, regulators and industry stakeholders say a more balanced infrastructure, improving both ATM reliability and digital security, will be essential to sustaining trust and efficiency in the financial sector.
As Nigeria continues its journey toward a cashless economy, the dominance of POS transactions marks a turning point in how millions of citizens access and manage their money, shaping the future of financial services across Africa’s largest economy.
