The value of Automated Teller Machine (ATM) transactions decreased by 13.6% year-on-year (YoY) to ₦28.2 trillion in 2023, down from ₦32.65 trillion in 2022.
This information was revealed by the Central Bank of Nigeria (CBN) in its statistical bulletin for March 2024.
The data also indicated a 0.5% decline in the volume of ATM transactions, which fell by 7 million to 1.38 billion in 2023 from 1.387 billion in 2022.
In contrast, the value and volume of Web Pay or internet transactions saw significant growth, surpassing ATM transactions. The value of internet transactions rose by 40% YoY, reaching ₦1,097 trillion in 2023 compared to ₦783.66 trillion in 2022.
Moreover, the volume of internet transactions increased by 54.7% YoY, climbing to 21.75 billion from 14.06 billion in 2022.
The decrease in ATM transactions can be attributed to the cash shortages experienced in the first quarter of 2023.
This was due to the redesign of the ₦200, ₦500, and ₦1,000 notes by the previous administration, aimed at controlling inflation and reducing cash outside the banking system.
As a result, there was a rise in the use of internet banking, mobile transfers, wallets, and Point of Sale (PoS) systems.
The growth in digital payment systems in Nigeria is largely a result of CBN’s policies to enhance financial inclusion and advance its cashless policy objectives.
