Lagos accounts for a third of nationwide closures as CBN pushes alternative payment channels….
Nigeria’s banking landscape is undergoing a gradual physical transformation, with Deposit Money Banks shutting 476 branches and cash centres between 2022 and 2025, according to data from the Central Bank of Nigeria.
The decline represents an 8.8 per cent reduction in the country’s physical banking network over the three-year period, even as the number of banks operating in the country increased.
Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector show that bank branches and cash centres fell from 5,410 in 2022 to 4,934 in 2025.
The contraction was relatively modest in 2023, when 37 locations were lost, taking the total to 5,373.
The pace of closures, however, increased significantly the following year, with 229 branches and cash centres shut in 2024, reducing the national figure to 5,144.
A further 210 locations were closed in 2025, bringing the total number of physical banking locations to 4,934.
Lagos accounted for the largest share of the decline, losing 158 branches and cash centres between 2022 and 2025.
The reduction represents 9.9 per cent of the state’s banking locations and accounts for roughly one-third of the nationwide contraction.
Despite the closures, Lagos retained its position as the country’s dominant banking centre, with 1,444 branches and cash centres in 2025. The figure represents about 29 per cent of all physical banking locations nationwide.
The Federal Capital Territory also recorded a reduction, with its banking locations falling from 400 in 2022 to 362 in 2025 — a decline of 38 locations, or 9.5 per cent.
Ekiti experienced one of the steepest contractions, with its banking network dropping from 107 locations in 2022 to 57 in 2025, representing a 46.7 per cent reduction.
Enugu lost 44 locations during the period, falling from 162 to 118, while Oyo declined by 41, from 237 to 196.
Other states that recorded notable reductions included Ondo, Plateau, Osun, Cross River and Rivers.
The pattern was different in some parts of northern Nigeria, where banking infrastructure initially expanded before experiencing a reversal.
Kano, for instance, increased its number of branches and cash centres from 164 in 2022 to 183 in 2024, before dropping sharply to 157 in 2025.
Kaduna followed a similar pattern, rising from 148 locations in 2022 to 164 in 2024, before falling to 146 the following year.
Some states, however, recorded growth throughout the period.
Delta increased from 173 banking locations in 2022 to 196 in 2025, while Edo rose from 155 to 165.
Jigawa also recorded an increase, from 31 to 37 locations, while Kogi moved from 63 to 68.
The CBN figures further highlight a significant disparity in the distribution of physical banking infrastructure across the country.
While Lagos had 1,444 branches and cash centres in 2025, Yobe had just 23, followed by Taraba with 26 and Zamfara with 28.
Bayelsa and Gombe each had 31 locations, while Ebonyi recorded 32.
The decline in physical branches comes against the backdrop of the banking industry’s growing reliance on digital platforms, electronic transactions and other alternative payment channels.
The CBN has in recent times encouraged greater adoption of these channels, particularly as part of efforts to deepen financial inclusion and expand access to financial services.
Speaking at the 2026 CBN Fair in Lokoja, Kogi State, the Acting Director of the CBN’s Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, called for increased use of alternative payment channels to support economic activity.
Sidi-Ali, who was represented by the Branch Controller of the CBN Lokoja Branch, Zubairu Salihu, said alternative payment systems were particularly important for farmers, traders, small businesses and operators in the informal sector.
She noted that such groups may have limited access to conventional banking services, making alternative channels critical to expanding financial access.
The steady reduction in physical banking locations therefore points to a changing model for financial service delivery in Nigeria, as banks increasingly rely on digital channels to reach customers beyond the traditional branch network.
