Nigeria’s banking industry has reduced its physical footprint by 476 branches and cash centres between 2022 and 2025, according to data from the Central Bank of Nigeria (CBN).
The reduction represents an 8.8 per cent decline in the number of physical banking locations across the country, with the total falling from 5,410 in 2022 to 4,934 in 2025. The figures are contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector.
The development highlights the continuing shift in Nigeria’s banking industry away from traditional branch-based services towards digital banking, electronic payments and other alternative channels.
Branch closures accelerated in 2024 and 2025
The CBN data show that the reduction was relatively modest in 2023 before accelerating sharply in the following two years.
Nigeria had 5,410 bank branches and cash centres in 2022. That number declined by 37 locations to 5,373 in 2023.
The contraction became much more pronounced in 2024, when banks recorded a net reduction of 229 locations, bringing the national total to 5,144.
Another 210 locations disappeared in 2025, leaving 4,934 branches and cash centres nationwide.
This means 439 of the 476 locations lost during the three-year period were closed between 2024 and 2025, accounting for about 92 per cent of the total reduction.
The figures cover physical locations operated by commercial banks, merchant banks and non-interest banks, with the data compiled from the CBN and the Nigeria Deposit Insurance Corporation (NDIC).
Number of banks increased before falling slightly
The reduction in physical branches did not occur because the number of banks operating in Nigeria declined throughout the period.
Instead, the number of banks increased from 32 in 2022 to 33 in 2023 and then to 35 in 2024.
It subsequently fell slightly to 34 in 2025.
The figures suggest that the contraction in physical outlets was therefore not simply a result of fewer banks operating in the country. Banks were increasingly maintaining fewer physical locations even as the number of licensed institutions remained relatively high.
The number of Nigerian bank branches outside the country also remained unchanged at two throughout the period.
Lagos records biggest decline
Lagos recorded the largest absolute reduction in bank branches and cash centres during the three-year period.
The state had 1,602 physical banking locations in 2022. That figure fell to 1,532 in 2023, 1,521 in 2024 and 1,444 in 2025.
The decline of 158 locations represents a 9.9 per cent reduction in Lagos.
The state accounted for roughly one-third of the nationwide reduction, although it remained by far the largest concentration of physical banking infrastructure in Nigeria.
By 2025, Lagos accounted for approximately 29 per cent of the country's 4,934 branches and cash centres.
The concentration of banking infrastructure in Lagos reflects the state's importance as Nigeria's commercial and financial centre. However, the decline also shows that even the country's largest banking market is experiencing the move towards fewer physical outlets.
Abuja also loses dozens of banking locations
The Federal Capital Territory recorded a significant decline as well.
Abuja had 400 bank branches and cash centres in both 2022 and 2023. The figure dropped to 391 in 2024 before falling further to 362 in 2025.
That represents a net reduction of 38 locations, or approximately 9.5 per cent, over the three-year period.
The reduction means customers in the nation's capital have also seen the physical banking network become smaller, even as demand for banking services continues.
Digital banking changes the role of branches
The reduction in physical branches comes against the backdrop of Nigeria's rapid expansion of digital financial services.
Customers increasingly use mobile banking applications, internet banking, automated teller machines, USSD services, point-of-sale terminals and electronic transfers for transactions that previously required visits to bank branches.
For banks, maintaining a large branch network comes with significant costs, including rent, security, staffing, electricity, technology infrastructure and cash-handling operations.
As more customers conduct routine transactions electronically, banks have greater incentives to concentrate physical operations in locations where branches remain commercially important.
The latest figures therefore point to a broader transformation of how banking services are delivered in Nigeria rather than simply a reduction in access to banking services.
However, the closure of branches can still have important consequences, particularly for customers who depend on face-to-face banking.
Branch closures could affect customers who rely on physical banking
Despite the growth of digital banking, not every Nigerian has equal access to reliable digital financial services.
Customers in areas with poor internet connectivity, unreliable electricity or limited access to smartphones may continue to depend heavily on physical branches and cash centres.
Older customers and people who are less familiar with digital platforms may also prefer traditional banking channels.
The situation is particularly relevant in rural and underserved communities, where physical bank branches can provide access to services that may not be readily available through digital platforms.
Consequently, a reduction in branches does not necessarily mean that banking access has improved for every customer.
The effect depends partly on whether banks replace closed branches with reliable alternative channels such as ATMs, agents, mobile applications, USSD services and other forms of financial infrastructure.
The decline comes as Nigeria's payments ecosystem expands
Nigeria has experienced significant growth in electronic payments and financial technology over the past several years.
Digital transfers and other electronic payment channels have become increasingly important to consumers and businesses, reducing the need for customers to visit bank branches for routine transactions.
This has changed the traditional purpose of a bank branch.
In the past, customers commonly visited branches to transfer money, withdraw cash, pay bills, check balances, open accounts and carry out other basic transactions.
Many of these services can now be completed through mobile applications, USSD codes, ATMs or agent banking.
Branches therefore increasingly serve functions that require physical interaction, including complex account issues, business banking, certain documentation requirements, relationship management and other specialised services.
Physical banking network shrinks despite growing financial activity
The CBN figures show that the decline in branches should not automatically be interpreted as evidence that Nigeria's banking industry is shrinking overall.
Rather, the data indicate that banks are reducing the number of physical locations through which they deliver services.
The number of banks operating in the country increased during most of the period covered by the data, while electronic banking has continued to expand.
The trend is similar to developments in banking markets globally, where financial institutions have increasingly invested in digital channels while reassessing the cost and usefulness of large branch networks.
For Nigerian banks, the balance is between reducing operating costs and maintaining sufficient physical infrastructure to serve customers who still need it.
What the figures mean for Nigerian banking
The closure of 476 branches and cash centres represents a significant change in the physical structure of Nigeria's banking system.
The most important part of the data is the acceleration of the trend.
Only 37 locations disappeared between 2022 and 2023, compared with 229 in 2024 and another 210 in 2025.
That suggests the move away from extensive physical branch networks has become considerably stronger in the last two years of the period.
At the same time, the continued importance of physical banking means banks cannot simply assume that every customer is ready to move completely online.
The challenge for the industry will be to ensure that digital expansion does not leave customers without practical alternatives, particularly in communities where connectivity and digital literacy remain challenges.
For regulators, the changing banking landscape also creates the need to monitor whether branch reductions are accompanied by adequate access to financial services.
The CBN's data provide a clear picture of the direction of travel: Nigeria's banking industry is becoming less dependent on traditional physical branches and more reliant on digital and alternative banking channels.
With the number of branches and cash centres falling from 5,410 to 4,934 between 2022 and 2025, the 476-location reduction marks one of the clearest signs yet of the changing way Nigerians interact with banks.
