Point of Sale (POS) terminals in Nigeria processed a staggering **N223.27 trillion** in transactions in 2024, more than double the **N110.35 trillion** recorded in 2023, according to the latest data from the Central Bank of Nigeria (CBN). The figures highlight a major shift in consumer behavior, with Nigerians increasingly opting for POS transactions over traditional ATM withdrawals.
POS Transactions Dominate as ATM Growth Stagnates
The CBN’s quarterly statistical bulletin reveals that POS transaction volume surged by **32.7%**, rising from **9.85 billion** in 2023 to **13.08 billion** in 2024. In contrast, ATM transactions saw only a marginal increase, from **1.012 billion** in 2023 to **1.022 billion** in 2024.
While ATM withdrawals grew slightly in value—from **N28.21 trillion** in 2023 to **N29.12 trillion** in 2024—the growth pales in comparison to the exponential rise in POS transactions, signaling a broader move toward digital payments.
Monthly Breakdown Shows Steady POS Growth
A month-by-month analysis of 2024 reveals consistent growth in POS usage:
– **January:** POS transactions hit **N11.50 trillion**, more than double the **N5.28 trillion** recorded in January 2023, while ATM withdrawals fell from **N3.24 trillion** to **N2.15 trillion**.
– **June:** POS transactions skyrocketed to **N19.57 trillion**, a **135% increase** from **N8.31 trillion** in June 2023.
– **December:** POS transactions peaked at **N31.84 trillion**, up from **N13.20 trillion** in December 2023.
ATM withdrawals, though still significant, remained largely flat, with December 2024 recording the highest ATM transaction value at **N3.91 trillion**, up from **N2.43 trillion** the previous year.
Drivers of the Shift to POS
The rapid adoption of POS terminals can be attributed to:
1. **Increased Accessibility:** Agency banking has expanded financial access, bringing POS services to both urban and rural areas.
2. **Cash Scarcity:** Many ATMs frequently ran out of cash, forcing customers to rely on POS agents.
3. **Convenience:** POS transactions offer faster and more flexible payment options compared to ATM withdrawals.
However, the surge in POS usage has also led to challenges, including:
– **High Transaction Charges:** In December 2024, POS agents increased fees by **100%**, charging up to **N200 per N5,000 withdrawal**.
– **Fraud Risks:** The rapid expansion has raised concerns over fraudulent transactions and security breaches.
CBN Sanctions Banks Over ATM Cash Shortages
Despite warnings from the CBN, many banks failed to ensure adequate cash supply in ATMs, particularly during the festive season. The apex bank fined **nine commercial banks** a total of **N1.35 billion** for non-compliance with cash distribution guidelines.
Affected banks include **Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, UBA, and Sterling Bank**. Each was fined **N150 million**, with penalties deducted directly from their CBN accounts.
Outlook: Digital Payments Continue to Rise
The data underscores Nigeria’s accelerating shift toward a cash-lite economy, with POS transactions expected to keep growing. However, stakeholders must address challenges such as **excessive charges, fraud risks, and ATM reliability** to ensure sustainable financial inclusion.
