New data from the Nigeria Inter-Bank Settlement System (NIBSS) has revealed a dramatic decline in ATM transactions, as Point of Sale (POS) agents increasingly dominate the retail payment space.
In 2024 alone, POS agents processed over ₦223 trillion in transactions, a significant leap from ₦167 trillion in 2023.
ATM usage, once the primary method for cash withdrawals, dropped by nearly 15% year-on-year, with many users citing ATM downtimes, long queues, and withdrawal limits as reasons for the shift.
The explosion in POS services is credited to their convenience, widespread presence—even in remote areas—and flexibility in charges.
Today, nearly every neighborhood in Nigeria has multiple POS outlets offering cash withdrawal, bill payment, and fund transfer services.
However, experts warn that this reliance on POS infrastructure makes the economy vulnerable to fraud and downtime, especially when mobile networks or financial systems experience glitches.
The Central Bank of Nigeria (CBN) has promised to regulate the sector more strictly, issuing licenses, setting transaction limits, and improving cybersecurity protocols to ensure long-term stability.
