Nigeria’s banks closed 476 branches in three years as digital banking takes over
The traditional banking hall is shrinking in Nigeria, with banks closing 476 branches and cash centres between 2022 and 2025.
There was a time when opening a bank account meant finding the nearest branch, joining a queue and waiting for your turn at the counter. Today, much of that experience can happen without entering a banking hall.
A transfer can be made from a phone, bills can be paid online and businesses can receive payments through digital platforms. The changing habits are now showing up in the physical footprint of Nigerian banks.
Data from the Central Bank of Nigeria’s 2025 Statistical Bulletin shows that the number of bank branches and cash centres across the country fell from 5,410 in 2022 to 4,934 in 2025.
That represents a net loss of 476 locations, or 8.8 percent, in three years. The figures cover branches and cash centres operated by commercial, merchant and non-interest banks.
The pace of closures is picking up
The decline was relatively small at first. Between 2022 and 2023, the number of physical banking locations fell by just 37, from 5,410 to 5,373.
The contraction became much sharper the following year. In 2024, the total dropped by 229 locations to 5,144. Another 210 locations disappeared in 2025, leaving the country with 4,934 branches and cash centres.
This means about 92 percent of the total 476-location reduction happened in 2024 and 2025.
The change is notable because it happened even as the number of banks increased during most of the period. Nigeria had 32 banks in 2022, 33 in 2023 and 35 in 2024, before the figure fell slightly to 34 in 2025.
In other words, the reduction in physical locations does not simply mean there are fewer banks operating. It points towards banks changing how they reach and serve their customers.
Lagos remains Nigeria’s banking hub
Lagos recorded the biggest absolute decline.
The state had 1,602 branches and cash centres in 2022. That number fell to 1,532 in 2023, 1,521 in 2024 and finally 1,444 in 2025.
That is a net reduction of 158 locations, representing a 9.9 percent decline. Yet Lagos remains by far the biggest physical banking market in Nigeria. Its 1,444 locations accounted for about 29 percent of all bank branches and cash centres in the country in 2025.
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The Federal Capital Territory also recorded a significant reduction, falling from 400 locations in 2022 to 362 in 2025. But some states experienced much steeper contractions.
Ekiti’s physical banking network fell from 107 locations to 57, a reduction of 46.7 percent. Enugu lost 44 locations, while Oyo lost 41.
The movement was not uniform across the country. Delta, for example, added 23 locations between 2022 and 2025, while Edo added 10.
That uneven distribution matters because physical banking access remains very different from one part of Nigeria to another. In 2025, Lagos had 1,444 locations, compared with just 23 in Yobe, 26 in Taraba and 28 in Zamfara.
The banking hall is no longer the only option
The shrinking branch network comes as the CBN continues to promote alternative payment channels as part of its financial inclusion strategy.
At the 2026 CBN Fair in Lokoja, the apex bank called for greater adoption of alternative payment channels, highlighting their importance for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services.
These channels include POS, USSD, mobile money, digital wallets, QR-code payments and electronic banking. They allow customers to carry out many everyday financial activities without relying on a traditional branch.
The shift goes beyond mobile banking. The growth of fintechs and supporting services such as credit bureaus is also changing how banks assess and serve customers.
Credit bureaus give lenders access to customers’ credit histories, making it easier to assess creditworthiness before extending loans and other services. As more banking processes move online, fewer interactions require customers to visit a physical branch.
Together, these changes are helping create a banking system that relies less on physical structures and more on digital infrastructure.
This does not mean the physical branch has become irrelevant.
For many Nigerians, particularly customers who handle cash, need face-to-face assistance or live in areas with weaker digital infrastructure, branches still matter.
But the numbers suggest that banks are increasingly able to serve customers without maintaining as many physical locations.
The shift also changes the economics of banking. A bank does not need the same physical network if more customers can transfer money, pay bills, check balances and access other services through digital channels.
For customers, the change can mean greater convenience. For banks, it can mean a different approach to where they invest their money and how they maintain their networks.
Nigeria’s banking industry is therefore entering a different phase.
