Fresh data released by the Central Bank of Nigeria shows that Deposit Money Banks and cash centres closed a net 476 branches over a three-year period, shrinking the national footprint down to 4,934 locations.
Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres across the country declined from 5,410 in 2022 to 4,934 in 2025.
While digital adoption is accelerating, the massive contraction reveals a deeper story of widening regional inequality, rising corporate overhead, and a changing reality for everyday consumers.
The numbers show an extreme concentration of physical banking infrastructure. Over 92% of the closures occurred rapidly in 2024 and 2025, but the impact is far from even across the country.
Lagos State lost 158 locations, yet it still retains 1,444 branches, holding nearly 29% of all physical bank halls nationwide.
Ekiti State suffered the steepest collapse, losing nearly half its entire banking network down 46.7% from 107 to 57 locations.
The entire northern states in Nigeria are operating with minimal physical infrastructure. Yobe has just 23 branches, Taraba has 26, and Zamfara has 28 serving their entire populations.
Industry analysts note that closing bank halls isn’t driven solely by customer preference for mobile apps, rather, it is a cost-cutting imperative.
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Operating a physical branch in Nigeria requires continuous 24/7 diesel power generation, armed security escorts, satellite communication links, and expensive cash-handling logistics.
As macroeconomic pressures and inflation spiked operational expenses, banks aggressively pruned unviable branches to protect profit margins, shifting the burden of cash distribution onto neighborhood Point-of-Sale (PoS) operators.
The loss of 476 branches has altered how different demographics experience banking operates.
While younger, app-native consumers rarely enter a physical hall, older citizens, informal market traders, and semi-urban residents face significant hurdles when mobile networks stall or unauthorized debit errors occur.
With fewer physical resolution centres available, everyday customers are increasingly forced to pay extra transaction fees at local PoS kiosks just to access their own money.
As commercial banks trim physical footprints to optimize profits, a critical question remains: Can digital apps and PoS kiosks fully replace the accessibility and trust of a neighborhood bank hall?
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(Editor: Anoyoyo Ogiagboviogie)
