Usage of Automated Teller Machines dropped by 40 per cent amid Naira scarcity in the last quarter of 2023, according to a report by KPMG.
KPMG disclosed in a recent report titled “In Pursuit Value” that the figures were obtained from surveyed customers of Nigerian and Ghanaian banks who narrated their experiences during the year 2023.
According to the data from the survey, ATM usage in Nigeria has declined due to the regular unavailability of cash in many bank ATM stands.
The multinational consulting firm further stated a rise in agent banking, such as Point of Sales operators, in the period under review.
It added that the Nigeria Inter-Bank Settlement System, NIBSS, witnessed a 52 per cent surge following the Central Bank of Nigeria’s efforts to regulate the circulation of the Naira.
It stated, “Currently, four in 10 customers report weekly ATM usage, a notable decline from the previous seven in 10 over the last few years. This decline in ATM usage coincides with a significant rise in agency banking usage, with six in 10 customers frequenting bank agents every week.
“Consequently, digital payments surged, marking a 52 per cent increase in total NIBSS Instant Payment transactions by October 2023 compared to January of the same year.
“This was triggered by the Central Bank of Nigeria’s initiative to overhaul the Naira, aiming to regulate cash circulation and reduce reliance on physical currency”.
