Death of ATM: How Nigerians are redefining access to cash

Across Nigeria, people are slowly moving away from using ATMs to get cash. Instead, many now rely on Point-of-Sale (POS) machines at shops, supermarkets, and small businesses. The shift is largely driven by speed, convenience, and accessibility.

At the same time, the Central Bank of Nigeria (CBN) introduced new rules for POS operators. The rules, which were announced on October 6, 2025, allow POS operators to provide services such as cash withdrawals, deposits, money transfers, and bill payments.

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Starting on April 1, 2026, every POS agent must work with only one principal financial institution, which could be a bank, mobile money operator, microfinance bank, payment service bank, or licensed super agent, which means agents can no longer operate across multiple platforms such as Moniepoint, OPay, or PalmPay. According to CBN, the reforms aim to curb fraud, improve oversight, and standardize service quality.

Why Nigerians are ditching ATMs for POS services

In an interview with The Lagos Voice, Emmanuel, a tricycle (keke) driver, who preferred to withhold his full identity, shared his experience with POS convenience.

“I am not sure I have visited an ATM or even a bank in the past four years. I rely on POS services because they are fast and there are no queues, unlike banks where you can spend hours and still face network issues,” he said.

Emmanuel added that with just a ₦100 charge, he can withdraw cash or make transfers. “I can even give the POS agent cash along with the account details, and they complete the transaction for me.”

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Tayo Ojo, a regular user of POS services, shared her experience on why she has moved away from ATMs. She highlighted how accessibility, reliability, and speed have made POS machines her preferred option for everyday transactions and emergencies.

Ojo explained that it has been a very long time since she last used an ATM, citing accessibility as the main reason for switching to POS.

“To find an ATM, you have to go to a major bus stop or a bank branch, and banks are not everywhere. The nearest branch to me is quite far, so it takes time just to withdraw cash. But with POS agents, there are several close to my house, making it much easier and faster,” she said.

Ojo recounted an ATM failure that changed her banking habits. “While I was in school, an ATM debited my account but didn’t dispense cash. I was stranded and embarrassed. Ever since then, I have depended on POS services, which are faster and more reliable.”

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Ojo explained that ATM networks are often unreliable, but POS services from providers like Moniepoint, OPay and PalmPay make access to cash much easier.

“Even if one agent has network issues, another nearby is usually working. With so many options around, you can almost always complete your transaction without hassle,” she said.

Another respondent, who requested anonymity, shared a similar experience, speaking further on why POS has become his preferred method for accessing cash.

“I use POS services almost every week, which, compared to ATMs, POS are more accessible, and I can make transfers directly from my phone, so I am not limited to card withdrawals, especially on days I forget my ATM card at home,” he said.

He recounted a frustrating experience with an ATM. “I attempted to withdraw money, but the machine malfunctioned twice and retained my card. The bank was closed, and neither my mobile app nor USSD was working. The security officer told me it could take four to five working days to retrieve my card, possibly longer since it wasn’t my bank’s ATM ”.

Explaining why POS is still more convenient, he said, “POS outlets are far easier to use. They are available almost everywhere, on nearly every street corner, which makes access to cash much simpler than relying on ATMs.”

Citing cost and efficiency, he continued, “The shift to POS has made daily life easier by improving access to cash. However, it would help if withdrawal charges were better regulated, especially during festive periods when rates tend to increase.

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When comparing costs and waiting time, he said he would rather pay POS charges than spend time queuing at a bank. Even when banks introduced fast-track withdrawal systems, it still doesn’t compare to how POS services have reduced time spent accessing cash.”

Operators voice concerns over new restrictions

In an interview with The Lagos Voice, Beshin Communication, a POS operator at Iyana Ipaja, Lagos State, said customer behavior is increasingly favoring POS services over ATMs.

“People now prefer POS services to ATMs. Unlike before, when crowds would form at ATMs with people struggling to withdraw cash, many now choose to pay a small POS charge for convenience. There are no queues, delays or conflicts. Most customers only visit the bank for issues that require direct assistance, which only bank staff can handle,” he explained.

Beshin also noted that the new policy restricting agents to a single POS machine could affect his business. “It will definitely affect my business and that of others. It seems like a move by the government to push more people back to the banks and ATMs,” he said.

An anonymous POS merchant, who provides POS machines to individuals and businesses in Alimosho, Lagos, said the demand for POS devices has skyrocketed in recent years, particularly for Moniepoint machines.

“Every day, several people come to my office to get POS machines for their businesses. Some are small shop owners, others are market traders, and a few are new agents looking to start earning through cash withdrawals and transfers,” he explained.

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Speaking further, he noted that the trend reflects a shift in how Nigerians access cash. “Most of these clients tell me they prefer POS over ATMs because it’s faster, more reliable, and there’s no need to queue. They also use POS machines to serve their customers directly, which helps their business run smoothly,” he said.

He also highlighted the impact of the Central Bank of Nigeria’s new policy restricting agents to a single principal. “This policy will affect how many machines some of us can provide,” he added.

Experts Speak

A budget and performance reporting expert, Felix Onwubiko,while speaking with The Lagos Voice attributed the growing shift from Automated Teller Machines (ATMs) to Point of Sale (POS) services in Nigeria to convenience and ease of access to cash.

“The transition from ATM usage to POS transactions is largely driven by how accessible and convenient POS services have become for everyday users,” Mr. Onwubiko explained.

He noted that the increasing reliance on POS agents has significantly improved financial inclusion across the country. According to him, both young and elderly individuals can now send and receive money with minimal difficulty, especially in areas where traditional banking infrastructure is limited.

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“POS services have bridged a major gap in financial inclusion. People who previously struggled with formal banking systems can now carry out transactions easily,” he said.

However, Mr. Onwubiko raised concerns about the downsides of the growing dependence on POS systems. He pointed out that additional service charges and persistent network challenges could discourage users over time.

“The extra charges, combined with unstable network services, may reduce user confidence in the long run. There is also a serious concern about the safety of POS agents who handle large volumes of cash on the streets daily,” he added.

Speaking further, he suggested that banks may already be adapting to this shift by prioritizing POS operations over ATM services.

“It appears that banks are preparing for this transition. Many ATMs are often underfunded, while more cash is allocated to POS agents, likely due to the commission structure that benefits the system,” he said.

Mr. Onwubiko projected a gradual decline in ATM usage as POS services continue to expand across the country.

“ATM usage will likely reduce steadily as more people embrace POS transactions for their daily financial needs,” he noted.

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On the broader impact, he emphasized that the continued adoption of POS systems could strengthen Nigeria’s financial system by promoting electronic transactions and reducing physical cash handling.

“In the long term, financial inclusion in Nigeria will be enhanced through POS systems, while dependence on physical cash will decline as more transactions become electronic,” he concluded.

Way Forward

On the way forward, Mr. Onwubiko maintained that financial inclusion in Nigeria will be enhanced through the continued use of POS systems, as it enables easier transactions for both young and old.

He noted that cash handling will reduce as more transactions are carried out electronically, thereby improving the overall financial system.

However, he pointed out that the extra charges associated with POS transactions, alongside network issues, could be discouraging to users if not addressed.

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Mr. Onwubiko also highlighted the risks faced by POS agents, stating that those handling large amounts of cash on the streets are exposed to significant danger.

He added that banks appear to be prepared for this shift, as many ATMs are not adequately funded, while more money is channelled to POS agents for commission.

He concluded that ATM usage will decline gradually as reliance on POS services continues to grow.