Deposit Money Banks (DMBs) across Nigeria have significantly scaled back their brick-and-mortar operations, shuttering a net total of 476 physical branches and cash centres over a three-year window between 2022 and 2025.
This contraction represents an 8.8 per cent reduction in the banking sector’s physical infrastructure footprint, according to official figures published in the Central Bank of Nigeria’s (CBN) 2025 Statistical Bulletin for the Financial Sector.
Data compiled jointly by the apex bank and the Nigeria Deposit Insurance Corporation (NDIC) reveals that the national tally of operational bank branches and cash centres declined steadily from 5,410 in 2022 down to 4,934 by the close of 2025.
Notably, the pace of branch closures gathered immense speed in recent years: after losing 37 branches in 2023, the industry recorded a sharp drop of 229 locations in 2024 and another 210 in 2025. Consequently, over 92 per cent of the net physical branch reduction occurred within the last two years alone.
Surprisingly, this structural contraction took place during a period when the total number of licensed commercial, merchant, and non-interest banks operating in the country actually expanded from 32 in 2022 to 34 in 2025.
Geographically, Lagos State bore the brunt of the reduction in absolute terms.
As Nigeria’s financial hub, Lagos saw its branch network contract from 1,602 locations in 2022 down to 1,444 by 2025—a loss of 158 branches, accounting for nearly a third of all closures nationwide.
Despite losing roughly 10 per cent of its outlets, Lagos continues to dominate Nigeria’s physical banking landscape, holding 29 per cent of all branches nationwide.
Significant contractions were also registered in the Federal Capital Territory, Abuja (down 38 branches to 362), Enugu (down 44), Oyo (down 41), and Ekiti, where branch networks shrank by a drastic 46.7 per cent, falling from 107 to 57 outlets.
Major commercial hubs in Northern Nigeria, including Kano and Kaduna, also reversed earlier expansions to end 2025 with net losses.
Conversely, a handful of states experienced network growth, including Delta State, which added 23 branches to reach 196, as well as Edo, Jigawa, and Kogi.
The rapid contraction underscores a massive behavioral and operational shift away from traditional brick-and-mortar establishments toward electronic banking, fintech apps, and USSD payment channels.
In response to these structural changes, the Central Bank of Nigeria has continued to urge MSMEs, informal sector operators, and rural dwellers to embrace alternative digital payment channels.
Speaking at the 2026 CBN Fair in Lokoja, Kogi State, Hakama Sidi-Ali, Acting Director of Corporate Communications, emphasized through representative Zubairu Salihu that alternative digital infrastructure remains vital for ensuring unhindered financial access for traders and small business owners nationwide.
"The decline occurred despite an increase in the number of banks operating in the country over the period, pointing to a gradual contraction in physical banking locations." — Central Bank of Nigeria 2025 Statistical Bulletin
#CBN #NigerianBanks #BankBranches #DigitalBanking #LagosEconomy #FinancialInclusion #NigerianEconomy #QubesBusiness
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