Point of Sale (POS) terminals processed transactions worth ₦223.27 trillion in 2024, doubling the ₦110.35 trillion recorded in 2023. This is according to data from the Central Bank of Nigeria’s (CBN) quarterly bulletin, which also shows a growing preference for POS over Automated Teller Machines (ATMs).
The number of POS transactions grew by 32.7%, from 9.85 billion in 2023 to 13.08 billion in 2024. Meanwhile, ATM usage remained flat, with a slight rise from 1.012 billion to 1.022 billion transactions. ATM withdrawals by value reached ₦29.12 trillion in 2024, up slightly from ₦28.21 trillion the previous year.
Monthly data shows steady growth in POS usage. In June, POS transaction value surged to ₦19.57 trillion, more than double the ₦8.31 trillion from June 2023. December saw the highest monthly POS transaction value at ₦31.84 trillion, compared to ₦13.20 trillion the year before. In contrast, ATM usage peaked at ₦3.91 trillion in December, showing limited growth.
The increase in POS usage is linked to better access through agency banking networks across both urban and rural areas. However, despite this growth, December witnessed a sharp increase in POS charges, with some agents collecting up to ₦200 per ₦5,000 withdrawal due to cash scarcity. Many ATMs ran dry, forcing people to rely on agents, who hiked fees amid high demand.
The CBN had earlier warned banks to ensure their ATMs were stocked. Nine banks were fined ₦150 million each, totaling ₦1.35 billion, for non-compliance. These included Fidelity, First Bank, Union Bank, Zenith Bank, UBA and others.
Increased digital transactions have also raised concerns over fraud. In the first quarter of 2024, POS-related fraud cases jumped by over 30%, rising from 2,683 cases in Q4 2023 to 3,518 in Q1 2024. POS fraud accounted for 30.67% of all fraud cases reported during the quarter.
In response, the CBN imposed new limits on POS cash withdrawals ₦100,000 daily per customer and ₦500,000 weekly. POS agents are capped at ₦1.2 million per day. The CBN also directed all agent banking terminals to be connected to a central monitoring system, with daily reports to be submitted electronically to the Nigerian Inter-Bank Settlement System (NIBSS).
These measures aim to promote cashless transactions, reduce fraud and improve oversight in Nigeria’s fast-growing POS ecosystem.