Banks Shut 476 Branches in Three Years as Nigeria’s Physical Banking Network Shrinks

Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, representing an 8.8 per cent reduction in the Country’s physical banking network, according to data from the Central Bank of Nigeria (CBN).

Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres nationwide dropped from 5,410 in 2022 to 4,934 in 2025.

The decline points to a growing shift away from traditional brick-and-mortar banking towards electronic and alternative banking channels, even as the number of banks operating in Nigeria increased during much of the period under review.

An analysis of the CBN figures showed that the contraction was relatively mild in 2023, when the number of branches and cash centres fell by 37, from 5,410 in 2022 to 5,373.

However, the pace of closures accelerated considerably in the following two years. The number dropped by 229 locations to 5,144 in 2024, before another 210 branches and cash centres were lost in 2025, bringing the national total to 4,934.

This means that about 92 per cent of the total 476-location reduction occurred in 2024 and 2025.

The CBN said the figures covered branches and cash centres operated by commercial banks, merchant banks and non-interest banks, with the data sourced from the apex bank and the Nigeria Deposit Insurance Corporation.

Lagos Records Biggest Decline

Lagos recorded the largest absolute reduction in physical banking locations during the three-year period.

The state, which remains Nigeria’s major commercial and financial hub, had 1,602 branches and cash centres in 2022. The figure declined to 1,532 in 2023, 1,521 in 2024 and eventually 1,444 in 2025.

The reduction amounted to 158 locations, representing a 9.9 per cent decline over the three years.

Lagos alone accounted for roughly one-third of the nationwide reduction, yet it remained by far the state with the largest concentration of physical banking infrastructure.

With 1,444 locations in 2025, Lagos accounted for about 29 per cent of all bank branches and cash centres in Nigeria.

Global Mirror News reports that the concentration of banking infrastructure in Lagos reflects the state’s position as the country’s leading commercial centre and a major hub for financial institutions, businesses and economic activities.

Abuja Also Records Significant Reduction

The Federal Capital Territory also experienced a notable decline in bank branches and cash centres.

The number remained at 400 in both 2022 and 2023 before falling to 391 in 2024 and 362 in 2025.

The figures represent a net reduction of 38 locations, equivalent to a 9.5 per cent decline during the period.

Ekiti Loses Nearly Half of Its Bank Locations

Ekiti State recorded one of the steepest percentage declines in the country.

The state’s physical banking network dropped from 107 locations in 2022 to 57 in 2025, meaning that 50 locations were lost within three years.

This represents a 46.7 per cent reduction, leaving Ekiti with almost half the number of bank branches and cash centres it had in 2022.

Enugu recorded a reduction of 44 locations, falling from 162 to 118, while Oyo lost 41, declining from 237 to 196.

Other states with substantial reductions included Ondo, which dropped 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 Also Experience Closures

The contraction was not limited to the southern part of the country, as some major commercial centres in northern Nigeria also recorded significant changes.

Kano initially recorded an increase in physical banking locations, rising from 164 in 2022 to 175 in 2023 and 183 in 2024.

However, the number fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had in 2022.

Kaduna followed a similar pattern. Its number of branches and cash centres increased from 148 in 2022 to 156 in 2023 and 164 in 2024 before declining to 146 in 2025.

Some States Expand Banking Networks

Despite the nationwide contraction, some states recorded increases in their physical banking infrastructure.

Delta State added 23 locations, increasing from 173 in 2022 to 196 in 2025.

Edo also recorded an increase, from 155 to 165 locations, while Jigawa rose from 31 to 37 and Kogi increased from 63 to 68.

The figures therefore indicate that the reduction was not uniform across the country, with some states experiencing expansion while others recorded substantial closures.

Wide Gap in Banking Access

The CBN data also revealed a wide disparity 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 locations, while Ebonyi had 32.

The sharp difference highlights the concentration of formal banking infrastructure in major economic centres compared with states where population density, commercial activity and access to financial services may be lower.

Global Mirror News gathered that the development comes at a time when Nigerian banks and financial institutions are increasingly relying on digital banking, mobile applications, electronic transfers, automated teller machines, point-of-sale terminals and other alternative payment channels to serve customers.

The decline in physical branches does not necessarily mean that access to banking services is declining at the same rate, as customers can increasingly perform transactions without visiting bank branches.

However, the closure of physical locations could pose challenges for customers who depend heavily on face-to-face banking services, particularly people in rural communities, elderly customers, small businesses and informal-sector operators.

CBN Pushes Alternative Payment Channels

The latest figures come against the backdrop of the CBN’s continued push for greater adoption of alternative payment channels as part of efforts to expand financial inclusion and stimulate economic activity.

The PUNCH recently reported that the apex bank called for increased use of alternative payment channels during the 2026 CBN Fair in Lokoja, Kogi State.

The Acting Director, Corporate Communications and Investor Relations Department of the CBN, Hakama Sidi-Ali, made the call at the event.

She was represented by the Branch Controller of the CBN Lokoja Branch, Zubairu Salihu.

Sidi-Ali said alternative payment channels were particularly important for farmers, traders, small businesses and operators in the informal sector who might have limited access to conventional banking services.

The trend recorded between 2022 and 2025 therefore suggests that Nigeria’s banking sector is undergoing a significant structural shift, with banks reducing their physical footprints while expanding their reliance on digital and electronic platforms.

For customers, the development could mean faster and more convenient banking for those with reliable access to digital services, while also underscoring the need for stronger digital infrastructure, financial literacy and inclusive payment systems to ensure that people who depend on physical banking are not left behind.