Nigerian Banks Shut 476 Branches and Cash Centres in Three Years — CBN

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Nigerian banks recorded a net reduction of 476 branches and cash centres between 2022 and 2025, as the country’s banking industry continued its shift away from traditional physical outlets towards digital and alternative payment channels.

Data from the Central Bank of Nigeria’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank 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 represents an 8.8 per cent reduction in physical banking locations over the three-year period.

The figures show that the contraction accelerated significantly after 2023. The number of locations fell by 37 between 2022 and 2023, from 5,410 to 5,373.

A further 229 locations disappeared in 2024, bringing the total down to 5,144, while another 210 were lost in 2025, leaving 4,934 locations nationwide.

Together, 2024 and 2025 accounted for about 92 per cent of the total 476-location reduction recorded during the period.

The contraction occurred even as the number of banks operating in Nigeria increased from 32 in 2022 to 33 in 2023 and 35 in 2024 before falling slightly to 34 in 2025, indicating that the reduction was largely in physical banking infrastructure rather than a simple fall in the number of banks.

Lagos recorded the largest decline in absolute terms.

The number of bank branches and cash centres in the state fell from 1,602 in 2022 to 1,444 in 2025, representing a net reduction of 158 locations, or 9.9 per cent.

Despite the decline, Lagos remained the country’s largest concentration of physical banking infrastructure, accounting for about 29 per cent of the 4,934 locations nationwide in 2025.

The Federal Capital Territory also recorded a reduction, with its physical banking locations falling from 400 in 2022 to 362 in 2025, representing a decline of 38 locations, or 9.5 per cent.

Ekiti recorded one of the sharpest percentage declines. Its number of branches and cash centres dropped from 107 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 recorded a reduction of 41, from 237 to 196.

Other states that recorded notable declines included Ondo, Plateau, Osun, Cross River and Rivers. Rivers, for instance, fell from 290 physical banking locations in 2022 to 275 in 2025.

The contraction was not uniform across the country, however.

Some states recorded increases in physical banking locations during the same period. Delta added 23 locations, rising from 173 in 2022 to 196 in 2025, while Edo increased from 155 to 165.

Jigawa rose from 31 to 37 locations, while Kogi increased from 63 to 68.

The figures also highlight 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, while Ebonyi had 32.

The reduction in physical branches comes as Nigerian banks increasingly rely on mobile banking, electronic payments, agent banking and other digital channels to serve customers.

The CBN has also continued to encourage the use of alternative payment channels as part of efforts to expand financial access and support 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.

Represented by the Branch Controller of the CBN Lokoja Branch, Zubairu Salihu, Sidi-Ali said alternative channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services.

The latest figures therefore point to a continuing structural change in Nigeria’s banking industry, where physical branches are becoming less dominant as banks expand digital and alternative ways of delivering financial services.

However, the reduction in branches does not mean that banks are withdrawing from all physical operations. The state-by-state figures show that some locations are still expanding their networks, suggesting that banks are increasingly concentrating physical outlets in areas where they consider them commercially necessary while relying on digital channels elsewhere.

For customers, the trend means that mobile banking, internet banking, automated teller machines, point-of-sale terminals and agent networks are likely to play an increasingly important role alongside conventional branches.

The CBN data also raise questions about financial inclusion, particularly in rural and underserved communities where physical branches remain an important access point for people who may have limited access to digital banking services.