Nigerian banks closed a net 476 branches and cash centres between 2022 and 2025, signalling a significant shift away from traditional brick-and-mortar banking across the country.
The latest figures from the Central Bank of Nigeria show that the number of bank branches and cash centres fell from 5,410 in 2022 to 4,934 in 2025, representing an 8.8 per cent reduction in physical banking locations.
The contraction occurred despite the number of banks operating in Nigeria increasing from 32 in 2022 to 35 in 2024 before dropping slightly to 34 in 2025, indicating that the decline was more closely linked to the reduction of physical outlets than the number of banking institutions.
CBN data showed that the decline initially appeared modest, with 37 locations disappearing between 2022 and 2023, before the pace accelerated as banks closed 229 locations in 2024 and another 210 in 2025.
This means about 92 per cent of the total 476-location reduction recorded during the three-year period occurred in 2024 and 2025, highlighting the sharp acceleration in the restructuring of Nigeria’s physical banking network.
The figures, contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector, cover 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 recorded the largest decline in absolute terms, losing 158 branches and cash centres as its total fell from 1,602 in 2022 to 1,444 in 2025.
Despite the reduction, Lagos remained by far the country’s biggest physical banking centre, accounting for about 29 per cent of all 4,934 bank branches and cash centres recorded nationwide in 2025.
The Federal Capital Territory also experienced a notable contraction, with its banking locations dropping from 400 in 2022 to 362 in 2025, representing a net loss of 38 branches and cash centres.
Ekiti recorded one of the steepest declines nationwide, with its physical banking network almost halving from 107 locations in 2022 to just 57 in 2025, representing a reduction of 46.7 per cent.
Other states that recorded significant reductions included Enugu, which lost 44 locations, Oyo with 41 fewer outlets, Ondo with 22 fewer, Plateau with 19 fewer, Osun with 17 fewer, Cross River with 16 fewer and Rivers with 15 fewer locations.
Some major northern markets also experienced declines after periods of expansion, with Kano falling from 183 locations in 2024 to 157 in 2025, leaving it seven locations below its 2022 figure.
Kaduna followed a similar pattern, rising from 148 physical banking locations in 2022 to 164 in 2024 before dropping to 146 in 2025.
Not every state experienced contraction, however, as Delta increased its banking locations from 173 in 2022 to 196 in 2025, while Edo rose from 155 to 165 during the same period.
Jigawa and Kogi also recorded modest expansions, with their physical banking locations rising from 31 to 37 and 63 to 68 respectively between 2022 and 2025.
The distribution of banking infrastructure remains highly uneven across Nigeria, with Lagos recording 1,444 locations in 2025 compared with only 23 in Yobe, 26 in Taraba and 28 in Zamfara.
Bayelsa and Gombe each had 31 locations, while Ebonyi recorded 32, illustrating the substantial gap between the country’s major commercial centres and states with smaller physical banking networks.
The shrinking branch network comes as Nigerians increasingly rely on mobile banking, electronic transfers, payment applications, ATMs and other digital financial services for everyday transactions.
The CBN has also called for greater adoption of alternative payment channels, particularly to improve financial access for farmers, traders, small businesses and operators in the informal sector who may have limited access to conventional banking facilities.
The latest data therefore highlights a major transformation in Nigeria’s banking industry, where financial institutions are increasingly balancing the cost of maintaining physical branches with the growing demand for faster and more convenient digital services.
For customers in areas where branches have disappeared, the transition could mean greater dependence on digital platforms, agents and other alternative channels for deposits, transfers, withdrawals and financial services.
The trend also raises questions about financial inclusion, particularly in rural and underserved communities where reliable internet access, digital literacy and access to electronic payment infrastructure may still be limited.
As banks continue to expand digital operations while rationalising physical locations, the future of banking in Nigeria appears increasingly likely to involve fewer traditional branches and greater reliance on technology-driven financial services.