Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, reducing the industry’s physical footprint by 8.8 per cent, according to data from the Central Bank of Nigeria (CBN).
The contraction occurred despite an increase in the number of banks operating in Nigeria over much of the period, highlighting the industry’s gradual shift away from traditional brick-and-mortar banking towards digital and electronic channels.
An analysis of the CBN data showed that the number of physical banking locations fell by 37 in 2023, from 5,410 to 5,373.
The pace of closures increased sharply in 2024, when 229 locations were lost, taking the total to 5,144. A further 210 locations disappeared in 2025, leaving 4,934 branches and cash centres nationwide.
As a result, about 92 per cent of the total reduction recorded during the three-year period occurred in 2024 and 2025.
The CBN said the figures covered branches and cash centres operated by commercial, merchant and non-interest banks, with the data sourced from the apex bank and the Nigeria Deposit Insurance Corporation.
Lagos records largest decline
Lagos recorded the largest absolute reduction in physical banking locations during the period.
The state had 1,602 branches and cash centres in 2022, but the figure declined to 1,532 in 2023, 1,521 in 2024 and 1,444 in 2025.
The 158-location reduction represents a 9.9 per cent decline, with Lagos alone accounting for about one-third of the national contraction.
Despite the closures, Lagos remained by far the country’s largest centre for physical banking, accounting for about 29 per cent of all branches and cash centres nationwide in 2025.
The Federal Capital Territory also recorded a decline, with the number of locations falling from 400 in 2022 and 2023 to 391 in 2024 and 362 in 2025.
This represented a reduction of 38 locations, or 9.5 per cent, over the three-year period.
Ekiti recorded one of the steepest percentage declines, with its physical banking network falling from 107 locations in 2022 to 57 in 2025 – a reduction of 50 locations, or 46.7 per cent.
Enugu lost 44 locations, falling from 162 to 118, while Oyo declined by 41, from 237 to 196.
Other states recording notable reductions included Ondo, where locations fell from 127 to 105; Plateau, from 80 to 61; Osun, from 113 to 96; Cross River, from 83 to 67; and Rivers, from 290 to 275.
Northern states record mixed trends
The contraction was also recorded in several major commercial centres in northern Nigeria, although some states experienced growth before subsequent declines.
Kano, for example, increased its number of branches and cash centres from 164 in 2022 to 175 in 2023 and 183 in 2024. However, the figure fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had three years earlier.
Kaduna followed a similar pattern, rising from 148 locations in 2022 to 156 in 2023 and 164 in 2024 before falling to 146 in 2025.
Some states bucked the national trend.
Delta added 23 locations, increasing from 173 in 2022 to 196 in 2025. Edo’s network rose from 155 to 165, while Jigawa increased from 31 to 37 and Kogi from 63 to 68.
The data also revealed significant disparities in the distribution of physical banking infrastructure across Nigeria.
While Lagos had 1,444 branches and cash centres in 2025, Yobe had only 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe each had 31, while Ebonyi recorded 32.
Banking shifts towards digital channels
The continued reduction in physical branches and cash centres reflects the growing adoption of electronic and alternative payment channels in Nigeria’s financial system.
The contraction has become particularly pronounced in the past two years, as banks increasingly rely on digital platforms and other electronic channels to serve customers.
The CBN has also encouraged financial institutions and consumers to embrace alternative payment systems as a means of expanding financial inclusion and stimulating economic activity.
Speaking at the 2026 CBN Fair in Lokoja, Kogi State, the Acting Director of the CBN’s Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, called for greater adoption of alternative payment channels.
Sidi-Ali, who was represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, said such channels were particularly important for farmers, traders, small businesses and informal-sector operators who might have limited access to conventional banking services.
