Nigerians are witnessing a significant shift in how they access cash, as recent changes by the Central Bank of Nigeria (CBN) have resulted in a nearly 20% decline in Point of Sale (PoS) transaction volumes. This drop comes amid a broader review of banking charges that aims to reflect rising operational costs and reshape consumer preferences in cash access.

The CBN's revised ATM withdrawal rules, which took effect on March 1, 2025, have introduced new fees for customers using ATMs from banks other than their own. Customers withdrawing from their own bank's ATM will not incur any charges, but those using another bank's machine will face a fee of ₦100 for every ₦20,000 withdrawn. Additionally, off-site ATMs may impose an extra surcharge of up to ₦500 per ₦20,000 withdrawal, which must be disclosed before the transaction is approved.

As a result of these changes, ATM usage has surged, with transaction volumes rising by 6.6% year-on-year to 438.6 million in the first quarter of 2026. The total value of these transactions skyrocketed by 64.6% to ₦26.3 trillion. In stark contrast, PoS transactions plummeted to 2.92 billion, down 19.9% from the previous year, with their value decreasing by 16.4% to ₦59.3 trillion.

The CBN's regulatory adjustments are part of a larger strategy to enhance the efficiency of ATM services and encourage investment in ATM infrastructure. In March 2026, the CBN issued new guidelines mandating that card issuers must deploy at least one ATM for every 7,500 payment cards issued over the next three years, aiming to strengthen the formal ATM network.

Historically, PoS agents have played a crucial role in cash access, especially during the 2023 cash crisis when bank branches and ATMs struggled to meet demand. However, the recent regulatory changes and the increased efficiency of ATM services are leading to a reallocation of cash access preferences among Nigerians. While PoS agents remain essential, particularly in areas with limited banking facilities, the rising popularity of ATMs indicates that banks are gradually regaining their foothold in the cash-access market.

The implications for consumers are significant, as the cost of accessing cash now varies depending on the withdrawal method. Using one's own bank's ATM remains the most economical option, while utilizing another bank's ATM incurs fees, and off-site machines may carry additional charges. This evolving landscape suggests that convenience and transaction costs will increasingly influence whether customers opt for ATM withdrawals or PoS terminals.

As the CBN continues to regulate agent banking and bolster ATM infrastructure, Nigeria's cash economy appears to be entering a new phase. The ongoing adjustments in consumer behavior reflect a broader trend towards more cost-effective and accessible cash withdrawal methods, reshaping the future of financial transactions in the country.