By Annette Ikponmwonba | September 14, 2026
Keypoints
• Nigerian banks reduced their branches and cash centres from 5,410 in 2022 to 4,934 in 2025.
• The 476-location reduction represents an 8.8 per cent decline in three years.
• About 92 per cent of the closures occurred in 2024 and 2025.
• Lagos recorded the largest decline, losing 158 branches and cash centres.
• Ekiti suffered one of the steepest contractions, with its network falling by 46.7 per cent.
• The CBN is encouraging greater adoption of alternative payment channels as banking shifts towards digital platforms.
Main Story
Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, reducing the country’s physical banking footprint by 8.8 per cent, according to data from the Central Bank of Nigeria, Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres fell from 5,410 in 2022 to 4,934 in 2025.
The contraction accelerated significantly in the last two years. The number of locations dropped by 37 in 2023, followed by a further 229 closures in 2024 and 210 in 2025. This means about 92 per cent of the total reduction occurred between 2024 and 2025, The decline happened despite the number of banks increasing from 32 in 2022 to 35 in 2024 before edging down to 34 in 2025. The CBN said the figures cover branches and cash centres operated by commercial, merchant and non-interest banks.
Lagos recorded the largest decline, with its physical banking locations falling from 1,602 in 2022 to 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 nationwide reduction, Despite the closures, Lagos remained the country’s dominant banking centre, accounting for about 29 per cent of all branches and cash centres in 2025.
The Federal Capital Territory also recorded a decline, from 400 locations in 2022 to 362 in 2025. Ekiti experienced an even sharper contraction, with its network falling from 107 to 57 locations, representing a 46.7 per cent decline, Other states that recorded significant reductions included Enugu, which lost 44 locations; Oyo, which lost 41; Ondo, Plateau, Osun, Cross River and Rivers.
However, some states expanded their physical banking networks. Delta increased from 173 locations in 2022 to 196 in 2025, while Edo rose from 155 to 165. Jigawa and Kogi also recorded modest increases, The figures point to a continuing shift away from traditional brick-and-mortar banking as customers increasingly use electronic and alternative payment channels for everyday transactions.
The Issues
The reduction in physical branches raises questions about access to banking services, particularly for people in rural communities and customers who rely heavily on face-to-face banking, The distribution of banking infrastructure also remains uneven. While Lagos had 1,444 locations in 2025, Yobe had only 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi had 32.
This disparity could make digital banking and alternative payment systems increasingly important in states with fewer physical banking outlets, At the same time, banks are under pressure to reduce operating costs and adapt to changing customer behaviour, as more transactions move to mobile banking, Internet banking, point-of-sale terminals and other electronic platforms.
What’s Being Said
The CBN has called for greater adoption of alternative payment channels to expand access to financial services and support economic activity, Acting Director of the CBN’s Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, made the call at the 2026 CBN Fair in Lokoja, Kogi State.
Represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, she said alternative payment channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services, The position reflects the growing importance of digital financial services as banks reduce their dependence on physical branches.
What’s Next
Banks are expected to continue expanding digital and alternative payment services as customers increasingly conduct transactions electronically, The challenge for regulators and financial institutions will be to ensure that the shift does not leave behind customers in rural and underserved communities who may have limited access to reliable digital infrastructure, Greater investment in financial technology, agent banking and other alternative channels could help bridge the gap created by the reduction in physical branches.
Bottom Line
Nigeria’s banking sector is rapidly reducing its physical footprint, with 476 branches and cash centres disappearing between 2022 and 2025, While the trend reflects the industry’s shift towards digital banking and lower-cost channels, the concentration of branches in major economic centres highlights the need to ensure that customers in underserved areas are not excluded from financial services.
