Nigerian banks closed a net 476 branches and cash centres between 2022 and 2025, representing an 8.8 per cent reduction, as rising adoption of digital and alternative banking channels continues to reshape how Nigerians access financial services.
According to the Central Bank of Nigeria (CBN) 2025 Statistical Bulletin for the Financial Sector, the number of branches and cash centres operated by commercial, merchant and non-interest banks fell from 5,410 in 2022 to 4,934 in 2025. The decline accelerated significantly in 2024 and 2025, when 439 locations were shut.
Key Highlights
- Nigerian banks reduced their physical locations by 476 between 2022 and 2025.
- Bank branches and cash centres fell from 5,410 to 4,934 during the period.
- About 92 per cent of the net reduction occurred in 2024 and 2025.
- Lagos recorded the largest absolute decline, losing 158 locations.
- Ekiti suffered one of the sharpest percentage declines, with locations falling by 46.7 per cent.
- Rising costs of rent, staffing, security, utilities and maintenance are also pushing banks to rationalise their branch networks.
Why Nigerian Banks Are Closing Branches
The growing shift from traditional banking to digital banking in Nigeria is emerging as the major reason banks are reducing their physical presence across the country.
Customers who previously visited bank branches to transfer money, check account balances, pay bills or carry out other routine transactions can now complete many of these activities through mobile banking applications, internet banking, USSD codes, ATMs and POS terminals.
As more customers embrace these channels, some physical branches experience lower customer traffic. For banks, maintaining locations with relatively low transaction volumes can become increasingly expensive.
The result is a gradual restructuring of branch networks, with banks seeking to concentrate physical operations in locations where demand remains strong while directing routine transactions to cheaper digital channels.
Rising Cost of Maintaining Bank Branches
Physical branches come with substantial recurring expenses, including rent, electricity, staffing, security, maintenance and other operational costs.
As banking customers move more transactions online, the revenue generated from some branches may no longer justify the cost of maintaining them.
Banks are therefore increasingly examining the performance of individual branches and cash centres as part of wider efforts to improve efficiency and control operating costs.
The reduction in physical locations does not necessarily mean that banks are withdrawing from the Nigerian market. Instead, it points to a change in how financial institutions deliver services to customers.
Read also:
- Nigeria Cash Outside Banks Drops by ₦485.8bn to Seven-Month Low as Digital Payments Gain Ground
- CBN Says Foreign Reserves Rise Above $52.5bn, Hits 17-Year High
- 91.4% of Personal Pension Plan Accounts Remain Unfunded, PenCom Data Show
CBN Data Shows Accelerating Decline
The CBN data show that the contraction in physical banking locations became more pronounced after 2023.
The number of branches and cash centres declined by only 37 in 2023, falling from 5,410 to 5,373.
The reduction accelerated in 2024, when the number fell by 229 to 5,144, followed by another 210-location decline in 2025.
This means that roughly 92 per cent of the total net reduction between 2022 and 2025 occurred during 2024 and 2025.
The contraction occurred even as the number of banks operating in Nigeria increased from 32 in 2022 to 35 in 2024 before declining slightly to 34 in 2025.
The number of overseas branches remained unchanged at two throughout the period.
Lagos Leads Branch Closures
Lagos recorded the largest absolute reduction in physical banking locations during the period.
The number of branches and cash centres in the state fell from 1,602 in 2022 to 1,444 in 2025, representing a decline of 158 locations or 9.9 per cent.
Despite the reduction, Lagos remained by far the state with the largest physical banking network, accounting for about 29 per cent of all remaining locations nationwide in 2025.
The Federal Capital Territory also recorded a significant decline, with locations falling from 400 to 362.
Ekiti recorded one of the steepest percentage reductions, dropping from 107 locations in 2022 to 57 in 2025, representing a 46.7 per cent decline.
Other states that recorded notable reductions included Enugu, which lost 44 locations, and Oyo, which lost 41. Declines were also recorded in Ondo, Plateau, Osun, Cross River and Rivers states.
Some States Recorded Growth
The contraction was not uniform across Nigeria.
Delta recorded an overall increase of 23 locations during the period, while Edo added 10. Jigawa and Kogi also recorded increases of six and five locations respectively.
Some northern states experienced growth earlier in the period before recording subsequent declines. Kano and Kaduna followed this pattern, with both ending the period below their 2022 levels.
The disparities highlight differences in population, economic activity, urbanisation, digital connectivity and demand for traditional banking services across the country.
Rural Areas Face Greater Access Concerns
While digital banking provides greater convenience for many customers, the reduction in physical branches could create challenges for people who depend on face-to-face banking services.
Older customers, people in rural communities and customers with limited digital literacy may still rely heavily on physical branches.
Connectivity and access to smartphones can also affect the ability of some Nigerians to fully participate in digital banking.
The challenge for banks and regulators is therefore to ensure that the transition to digital services does not leave financially vulnerable communities behind.
CBN Pushes Alternative Banking Channels
The CBN has continued to promote alternative payment and banking channels as part of efforts to expand financial inclusion.
Mobile banking, USSD, ATMs and POS terminals have become important components of Nigeria’s financial system, allowing customers to conduct transactions without visiting a conventional bank branch.
At the 2026 CBN Fair in Lokoja, Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, highlighted the role of alternative channels in expanding access to financial services, particularly for farmers, traders, small businesses and informal-sector operators.
The increasing use of these channels is helping banks serve more customers without necessarily expanding their physical footprints. Further details are available on the Central Bank of Nigeria website.
Digital Banking Is Changing Nigeria’s Banking Landscape
The closure of 476 branches and cash centres between 2022 and 2025 signals a structural transformation in Nigeria’s banking industry.
Banks are increasingly moving towards a model in which physical branches handle specialised and complex transactions, while routine banking services are delivered through digital platforms.
For customers, the transition offers greater convenience and faster access to many banking services. For banks, it can reduce operating costs and improve efficiency.
However, the shrinking physical network also makes financial inclusion an important consideration, particularly in communities where digital infrastructure and financial literacy remain limited.
The future of Nigerian banking is therefore unlikely to be entirely branchless. Instead, the industry appears to be moving towards a hybrid model, combining fewer strategically located branches with increasingly sophisticated digital and alternative banking channels. For more updates, follow us on X.
