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From Adanna Nnamani, Abuja
Deposit Money Banks (DMBs) in Nigeria closed 476 branches and cash centres between 2022 and 2025, cutting their physical presence across the country by 8.8 per cent, according to the Central Bank of Nigeria (CBN).
The CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres nationwide dropped from 5,410 in 2022 to 4,934 in 2025.
The development points to a growing shift in the banking industry from traditional branch-based operations to digital banking channels, as banks increasingly rely on mobile applications, internet banking, automated teller machines and other electronic platforms to serve customers.
The decline also occurred despite an increase in the number of banks operating in the country during the period, suggesting that banks are increasingly focusing on technology-driven services while reducing the cost of maintaining large physical networks.
According to the CBN, the figures cover branches and cash centres operated by commercial, merchant and non-interest banks. The data were sourced from the apex bank and the Nigeria Deposit Insurance Corporation (NDIC).
The contraction became more pronounced in the last two years, with about 92 per cent of the total 476-location reduction recorded in 2024 and 2025.
Lagos State recorded the biggest decline in absolute terms.
The number of bank branches and cash centres in the state fell from 1,602 in 2022 to 1,444 in 2025, representing a loss of 158 locations.
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This translates to a 9.9 per cent reduction and accounts for about one-third of the nationwide decline during the period.
The reduction in physical branches reflects the changing nature of banking in Nigeria, where customers are increasingly carrying out transactions without visiting bank premises.
Transfers, bill payments, account opening, airtime purchases, loan applications and other banking services can now be completed through mobile phones and digital platforms.
For banks, the shift also offers an opportunity to cut operating costs associated with branches, including rent, security, utilities, staffing and cash management.
However, the reduction in branches could raise concerns about access to banking services, particularly for customers in rural communities and those who are less comfortable with digital platforms.
Despite the rapid growth of electronic banking, a significant number of Nigerians still depend on physical branches for cash-related transactions, account-related complaints, identity verification and other services that may be difficult to complete digitally.
The development therefore presents a balancing challenge for banks and regulators as the industry expands digital banking while ensuring that customers who rely on physical banking are not left behind.
The CBN data further highlight the pace of structural change in Nigeria’s banking industry, with banks increasingly investing in technology and alternative delivery channels rather than expanding their traditional branch networks.
The trend is expected to continue as financial institutions seek to improve efficiency, reduce operating costs and compete for customers in an increasingly digital financial services market.
