Nigeria’s banking landscape is changing rapidly, with banks shutting 476 branches and cash centres between 2022 and 2025, according to data from the Central Bank of Nigeria (CBN). The development represents an 8.8 per cent decline in physical banking locations nationwide, with the total number falling from 5,410 in 2022 to 4,934 in 2025.
The contraction became more noticeable in the last two years of the period. While banks closed just 37 locations in 2023, another 229 disappeared in 2024, followed by 210 closures in 2025. This means about 92 per cent of the total reduction occurred within 2024 and 2025, despite the number of banks operating in Nigeria rising from 32 in 2022 to 35 in 2024 before settling at 34 in 2025.
Lagos recorded the biggest decline, losing 158 branches and cash centres over the three-year period. The state’s total fell from 1,602 locations in 2022 to 1,444 in 2025, representing a 9.9 per cent reduction. Despite the closures, Lagos remained the country’s banking hub, accounting for about 29 per cent of all physical banking locations nationwide.
Other states also recorded significant contractions. The Federal Capital Territory lost 38 locations, while Ekiti experienced one of the steepest declines, with its network dropping from 107 to 57 locations — a 46.7 per cent reduction. Enugu, Oyo, Ondo, Plateau, Osun, Cross River and Rivers also recorded notable declines. However, some states bucked the trend, with Delta, Edo, Jigawa and Kogi recording increases in their banking locations.
The shrinking number of physical branches highlights a broader shift in Nigeria’s financial sector as customers increasingly embrace digital banking and alternative payment channels. The CBN has encouraged greater adoption of these platforms, particularly among farmers, traders, small businesses and informal-sector operators who may have limited access to traditional banking facilities. While fewer branches could mean greater efficiency for banks, it also raises questions about how financial institutions can maintain access for Nigerians who still depend heavily on physical banking services.
source: punch
