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 their physical presence across the country.
The development, according to data contained in the Central Bank of Nigeria’s 2025 Statistical Bulletin for the Financial Sector, saw the number of bank branches and cash centres decline from 5,410 in 2022 to 4,934 in 2025.
The contraction occurred despite a rise in the number of banks operating in Nigeria during most of the period, suggesting a gradual shift away from traditional brick-and-mortar banking towards electronic and alternative payment channels.
The data showed that the number of physical banking locations dropped by 37 in 2023, from 5,410 to 5,373. The decline accelerated in 2024 when 229 locations were lost, reducing the total to 5,144.
Another 210 locations were closed in 2025, bringing the figure to 4,934.
Consequently, about 92 per cent of the total 476-location decline recorded between 2022 and 2025 occurred in 2024 and 2025.
The CBN said the figures covered 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.
Despite the reduction in physical locations, the number of banks increased from 32 in 2022 to 33 in 2023 and 35 in 2024 before declining slightly to 34 in 2025. The number of branches operated by Nigerian banks abroad remained at two throughout the period.
Lagos recorded the largest absolute decline in banking locations during the period.
The state, which remains Nigeria’s major commercial and financial hub, had 1,602 branches and cash centres in 2022. The figure fell to 1,532 in 2023, 1,521 in 2024 and 1,444 in 2025.
This represents a net loss of 158 locations, or 9.9 per cent, over the three-year period.
Lagos alone accounted for about one-third of the nationwide reduction and still dominated Nigeria’s physical banking infrastructure, with its 1,444 locations representing about 29 per cent of the national total in 2025.
The Federal Capital Territory also recorded a decline, from 400 locations in both 2022 and 2023 to 391 in 2024 and 362 in 2025. This amounted to a net reduction of 38 locations, or 9.5 per cent.
Ekiti recorded one of the sharpest declines, with its banking locations falling from 107 in 2022 to 57 in 2025, representing a 46.7 per cent reduction.
Enugu followed, losing 44 locations as its total declined from 162 to 118, while Oyo dropped by 41 locations, from 237 to 196.
Other states that recorded significant reductions included Ondo, which fell 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 Record Decline
The contraction was also recorded in some major northern commercial centres.
Kano initially recorded an increase, rising from 164 locations in 2022 to 175 in 2023 and 183 in 2024. However, the figure fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had in 2022.
Kaduna followed a similar trend, increasing from 148 locations in 2022 to 156 in 2023 and 164 in 2024 before dropping to 146 in 2025.
Some states, however, expanded their physical banking networks.
Delta recorded the largest increase among the states listed, adding 23 locations to rise from 173 in 2022 to 196 in 2025. Edo increased from 155 to 165, while Jigawa rose from 31 to 37 and Kogi from 63 to 68.
The figures also revealed significant disparities in the distribution of banking infrastructure across the country.
While Lagos had 1,444 branches and cash centres in 2025, Yobe had only 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi recorded 32.
The trend highlights the growing concentration of physical banking facilities in major economic centres, even as digital banking and electronic payment platforms continue to expand.
The development comes amid calls by the CBN for greater adoption of alternative payment channels to improve financial inclusion and stimulate economic activity.
Speaking at the 2026 CBN Fair in Lokoja, Kogi State, Acting Director of the CBN’s Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, 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.
Sidi-Ali, who was represented by the CBN Lokoja Branch Controller, Zubairu Salihu, said wider adoption of such channels would help expand access to financial services across the country.
