Automated Teller Machines (ATMs) recorded a sharp increase in usage in Nigeria in the first quarter of 2026, while transactions through Point-of-Sale (PoS) terminals declined significantly, according to data from the Central Bank of Nigeria (CBN).
The CBN data showed that Nigerians carried out 438.6 million ATM transactions between January and March 2026, representing a 6.6% increase compared with the same period in 2025.
The value of ATM transactions also climbed substantially, rising by 64.6% year-on-year to N26.3 trillion. Brandspur Banking News Desk reports that the figures point to a notable shift in the country’s cash withdrawal landscape after years in which PoS agents became a major alternative for Nigerians struggling with unreliable or inaccessible bank ATMs.
In contrast, PoS transaction volumes dropped by 19.9% year-on-year to 2.92 billion transactions during the quarter. The total value processed through PoS terminals also declined by 16.4% to N59.3 trillion.
The figures suggest that the growth of ATM usage has coincided with a period of weaker activity on PoS terminals. However, the data alone does not establish that customers who stopped using PoS terminals necessarily switched to ATMs.
The wider payments landscape may also be influencing how Nigerians move money and make everyday purchases. Bank transfers have become increasingly common for payments, particularly where customers can send money directly to merchants instead of waiting for a PoS terminal to become available.
For consumers, the cost of using different payment channels is another consideration. PoS transactions can attract additional charges, particularly when customers withdraw cash through agents, while ATM withdrawals may be cheaper or free depending on the customer’s bank and applicable withdrawal limits.
Reliability also remains important. Nigerians have long relied on PoS agents in areas where ATMs are scarce, out of cash or temporarily unavailable. Agents effectively filled that gap by bringing cash withdrawal services closer to homes, markets and businesses.
The latest figures could therefore reflect changes in the economics and reliability of different payment channels rather than a simple return from PoS terminals to ATMs.
For banks, increased ATM activity presents an opportunity to strengthen a channel that had lost ground to agents. Keeping machines operational, adequately funded with cash and accessible to customers would be critical if financial institutions want the trend to continue.
Customers also expect greater reliability from ATMs. A machine that is available but unable to dispense cash, process transactions or operate securely offers little practical advantage over alternative channels.
At the same time, PoS agents remain an important part of Nigeria’s financial services network. Their presence in neighbourhoods and commercial areas means they can continue to serve customers who may not have convenient access to bank branches or functioning ATMs.
The decline in PoS volumes should therefore not be interpreted as evidence that agents are becoming irrelevant. Rather, the figures show that Nigerians are using several payment channels and may be changing their preferences depending on cost, convenience, availability and reliability.
The CBN figures provide a snapshot of that changing behaviour in the first quarter of 2026. ATM transaction volumes rose to 438.6 million, while PoS transaction volumes fell to 2.92 billion.
As banks improve ATM availability and Nigerians increasingly adopt digital transfers for payments, the competition between cash points, PoS agents and electronic payment channels is likely to remain an important feature of the country’s evolving payments system.
