Why PoS transactions are falling as CBN revises charges
By Aboki Forex —
The Central Bank of Nigeria's revised ATM charges took effect on March 1, 2025, and fresh data shows PoS transaction volumes dropped by almost 20% in Q1 2026. Customers using another bank's ATM now pay ₦100 for every ₦20,000 withdrawn, while off-site operators can add up to ₦500 more.
New ATM fee framework
Withdrawals from a customer's own bank ATM remain free. For on-site ATMs belonging to other banks, the charge is ₦100 per ₦20,000 withdrawal. Off-site ATMs carry the same ₦100 charge, but the operator can impose an additional surcharge of up to ₦500 per ₦20,000 withdrawal. The surcharge must be disclosed before the customer approves the transaction.
The CBN said the review was driven by rising operating costs and the need to improve ATM service efficiency while encouraging greater investment in ATM infrastructure. The new charges apply to all ATM withdrawals from March 1, 2025.
PoS volumes fall, ATM use rises
CBN data shows Nigerians carried out 2.92 billion PoS transactions in Q1 2026, down 19.9% from the same period a year earlier. The value of those transactions fell 16.4% to ₦59.3 trillion.
ATM activity moved in the opposite direction. ATM transactions rose 6.6% year-on-year to 438.6 million during the same period, while their value jumped 64.6% to ₦26.3 trillion, according to TechCabal.
The shift comes after years in which PoS agents became one of Nigeria's most important channels for accessing cash. During the 2023 cash crisis, millions of Nigerians relied heavily on agents because bank branches and ATMs struggled to meet demand.
Tighter agent rules and new ATM guidelines
The CBN has also tightened agent-banking rules, restricting how agents operate. The requirements cover terminal providers, operating locations and transaction limits.
In March 2026, the regulator issued new ATM guidelines covering deployment and operations. Card issuers are now required to deploy at least one ATM for every 7,500 payment cards issued over the next three years.
The CBN's cash policy allows individuals to withdraw up to ₦500,000 weekly across all channels, although ATM withdrawals are capped at ₦100,000 daily. Withdrawals above the weekly threshold attract excess withdrawal charges, according to a report by BusinessDay.
What it means for consumers
The cost of accessing cash increasingly depends on where you withdraw. Using your own bank's ATM remains the cheapest option because there is no CBN-prescribed charge for an on-us withdrawal. Using another bank's ATM can attract fees, while off-site machines may carry an additional surcharge.
PoS agents remain vital, especially in neighbourhoods with limited banking infrastructure. But rising ATM usage signals that banks may be gradually reclaiming part of the cash-access market they lost to agents. With the CBN regulating agent banking and encouraging stronger ATM infrastructure, convenience, availability and transaction costs will likely determine whether Nigerians choose an ATM or a PoS terminal.