The Central Bank of Nigeria (CBN) has revealed a staggering 603% increase in the value of point-of-sale (POS) transactions compared to ATM usage, highlighting a significant shift in the country’s payment landscape.
According to the CBN’s 2024 quarterly statistical bulletin, Nigerians conducted ₦85.91 trillion worth of transactions via POS terminals in the first half of the year, far surpassing the ₦12.21 trillion recorded for ATM transactions during the same period.
This represents a 77% jump from the ₦48.44 trillion POS transactions recorded in 2023, underscoring a growing preference for electronic payments. The volume of POS transactions also rose significantly, from 4.87 billion to 6.39 billion, reflecting changing consumer habits amid persistent ATM cash shortages and lengthy withdrawal queues.
In contrast, ATM transactions experienced a notable decline. The total value dropped by 16.6%, from ₦14.63 trillion in 2023 to ₦12.21 trillion in 2024, while the number of transactions fell from 519.52 million to 496.43 million.
Digital Payments on the Rise
The trend toward digital payments extends beyond POS usage. Internet banking transaction values more than doubled, reaching ₦825.5 billion in 2024 compared to ₦462.17 billion in 2023. Similarly, mobile payment platforms saw a 64% increase in transaction values, from ₦97.06 billion to ₦159.42 billion, alongside a 50% rise in transaction volume.
Meanwhile, cheque transactions continued their decline, despite a slight rise in value from ₦6.97 trillion in 2023 to ₦8.74 trillion in 2024. The volume of cheque transactions dropped from 8.13 million to 6.88 million, signaling diminishing reliance on traditional banking methods.
POS Charges and Cash Accessibility
Despite arbitrary fee hikes, including a 100% increase in POS charges reported in December 2024, many Nigerians continue to rely on POS terminals for cash transactions. This shift is driven largely by the inability of banks to maintain adequate cash supplies at ATMs.
In response to the cash availability crisis, the CBN sanctioned nine banks for non-compliance with ATM cash distribution guidelines during the festive season. Fines totaling ₦1.35 billion were imposed, deducted directly from the banks’ accounts with the apex bank, signaling CBN’s commitment to resolving the issue.
The Future of Payments in Nigeria
The rapid adoption of POS, mobile, and internet banking solutions underscores the ongoing digital transformation of Nigeria’s financial system. With the growing accessibility of smartphones and mobile banking services, this trend is expected to continue, reshaping how Nigerians access and manage their finances.
As the digital payment ecosystem evolves, POS transactions remain at the forefront, reflecting the resilience of Nigerians in adapting to changing economic realities.
