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Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, shrinking the country’s physical banking network by 8.8% over the three-year period, according to data from the Central Bank of Nigeria (CBN).
Figures published in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres declined from 5,410 in 2022 to 4,934 in 2025.
The contraction occurred despite a rise in the number of banks operating in the country during much of the period, indicating a gradual shift away from traditional physical banking locations.
An analysis of the data showed that the network declined by 37 locations between 2022 and 2023, falling from 5,410 to 5,373. The pace of closures increased in 2024, when 229 locations were removed, bringing the total to 5,144. A further 210 locations were closed in 2025, reducing the network to 4,934.
As a result, approximately 92% of the total 476-location reduction occurred in 2024 and 2025.
The CBN said the figures cover branches and cash centres operated by commercial banks, merchant banks, and non-interest banks. The data were sourced from the apex bank and the Nigeria Deposit Insurance Corporation.
Physical banking network contracts despite more banks
The number of banks increased from 32 in 2022 to 33 in 2023 and 35 in 2024, before falling slightly to 34 in 2025. Meanwhile, the number of branches operated by Nigerian banks outside the country remained unchanged at two throughout the period.
Lagos recorded the largest decline in absolute terms. The state had 1,602 branches and cash centres in 2022, but 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, equivalent to a 9.9% reduction. Lagos alone accounted for roughly one-third of the nationwide decline.
Despite the contraction, Lagos remained the country’s leading hub for physical banking services, accounting for approximately 29% of all 4,934 branches and cash centres recorded nationwide in 2025.
The Federal Capital Territory also recorded a decline, with the number of locations holding at 400 in 2022 and 2023 before falling to 391 in 2024 and 362 in 2025. This represents a net reduction of 38 locations, or 9.5%.
Ekiti records sharpest contraction among states
Ekiti experienced one of the steepest declines, with its banking network falling from 107 locations in 2022 to 57 in 2025. The 50-location reduction represents a 46.7% contraction.
Enugu followed with a decline of 44 locations, from 162 to 118, while Oyo lost 41 locations, falling from 237 to 196.
Other states with notable reductions included Ondo, where the number declined 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.
Some major northern commercial centres also recorded declines after initial increases. Kano’s banking locations rose from 164 in 2022 to 175 in 2023 and 183 in 2024, before falling sharply to 157 in 2025. The state therefore ended the period with seven fewer locations than it had in 2022.
Kaduna followed a similar pattern, increasing from 148 locations in 2022 to 156 in 2023 and 164 in 2024, before declining to 146 in 2025.
Selected states expand branch networks
While most states recorded reductions, some expanded their physical banking infrastructure.
Delta added 23 locations, increasing from 173 in 2022 to 196 in 2025. Edo’s total rose from 155 to 165, while Jigawa increased from 31 to 37 and Kogi from 63 to 68.
The figures also reveal significant disparities in the distribution of banking infrastructure. Lagos had 1,444 locations in 2025, compared with 23 in Yobe, 26 in Taraba, and 28 in Zamfara. Bayelsa and Gombe had 31 locations each, while Ebonyi recorded 32.
The concentration of branches in Lagos highlights the uneven distribution of physical banking services and the extent to which financial infrastructure remains concentrated around Nigeria’s largest commercial centre.
Banking shifts towards digital channels
The latest data point to an accelerating contraction in the physical banking footprint as banks increasingly migrate services to electronic and alternative payment platforms.
The development comes amid calls from the CBN for wider adoption of alternative payment channels to improve financial access 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, 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.
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