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The value of Automated Teller Machine (ATM) transactions in Nigeria fell by 13.6 percent year-on-year (YoY) to N28.2 trillion in 2023, down from N32.65 trillion in 2022, according to the Central Bank of Nigeria (CBN) in its March 2024 statistical bulletin.
The data also revealed that the volume of ATM transactions declined slightly YoY by 7 million transactions, or 0.5 percent, to 1.38 billion in 2023 from 1.387 billion in 2022.
In contrast, Web Pay or internet transactions saw significant growth during the same period, both in volume and value. The value of internet transactions increased by 40 percent YoY to N1,097 trillion in 2023, up from N783.66 trillion in 2022. Similarly, the volume of internet transactions surged by 54.7 percent YoY to 21.75 billion in 2023, compared to 14.06 billion in 2022.
The decline in ATM transaction volume and value reflects the impact of cash scarcity during the first quarter of 2023. This scarcity was a result of the redesign of the N200, N500, and N1,000 notes by the previous administration, aimed at controlling inflation and reducing the amount of currency outside the banking system.
Consequently, there was an increased use of internet banking, mobile transfers, digital wallets, and Point of Sale (PoS) systems for payment transactions.
The rise in the adoption of digital payment systems in Nigeria can be attributed to various CBN policies aimed at enhancing financial inclusion and promoting a cashless economy.
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