Bank Branch Closures: Nigerian Banks Shut 476 Locations in 3 Years as Digital Push Accelerates

The physical footprint of traditional banking in Nigeria is shrinking rapidly. Between 2022 and 2025, Deposit Money Banks (DMBs) across the country closed a net total of 476 branches and cash centres, reducing their brick-and-mortar network by 8.8 per cent.

Data from the Central Bank of Nigeria’s (CBN) 2025 Financial Sector Statistical Bulletin reveals that total physical banking locations dropped from 5,410 in 2022 to 4,934 in 2025.

Surprisingly, this contraction occurred even as the number of operating banks rose from 32 in 2022 to 34 in 2025, highlighting a clear strategic pivot away from expensive physical branches in favor of digital and mobile banking platforms.

Over 90% of Closures Happened in 2024–2025

While branch closures were relatively slow in 2023 (losing just 37 branches), the pace of shutdown accelerated dramatically over the following two years. About 92 per cent of all branch closures took place in 2024 and 2025.

• 2022: 5,410 locations
• 2023: 5,373 locations (down 37)
• 2024: 5,144 locations (down 229)
• 2025: 4,934 locations (down 210)

State-by-State Impact: Lagos and Ekiti Take Huge Hits

The reduction in banking infrastructure was felt unequally across Nigeria’s 36 states and the Federal Capital Territory:

• Lagos State: As the nation’s financial hub, Lagos lost 158 branches—accounting for nearly one-third of the nationwide total reduction. However, Lagos still dominates physical banking, holding 29% of all Nigerian bank branches in 2025.
• Ekiti State: Suffered the steepest proportional loss in the country, seeing its network cut almost in half (-46.7%), dropping from 107 to 57 branches.
• Northern Commercial Hubs: Both Kano and Kaduna saw temporary branch growth in 2023–2024 before sharp cutbacks in 2025 brought their net totals lower than 2022 levels.

Which States Bucked the Trend?

A few states managed to expand their physical networks despite the national decline:

• Delta State: Added 23 locations (173 to 196)
• Edo State: Added 10 locations (155 to 165)
• Kogi State: Added 5 locations (63 to 68)
• Jigawa State: Added 6 locations (31 to 37)

Wide Disparities in Financial Access

The CBN data also underlines severe regional imbalances in physical banking access across Nigeria. While Lagos alone accounts for 1,444 branches, several states have fewer than 30 branches to serve their entire populations:

• Yobe: 23 locations
• Taraba: 26 locations
• Zamfara: 28 locations
• Bayelsa & Gombe: 31 locations each
• Ebonyi: 32 locations

The Push for Alternative Payment Channels

Addressing delegates at the 2026 CBN Fair in Lokoja, Hakama Sidi-Ali, Acting Director of Corporate Communications and Investor Relations at the CBN, emphasized that expanding access to alternative payment channels—such as USSD, agency banking, and mobile apps—remains vital.

“Alternative payment channels are particularly important for farmers, traders, small businesses, and informal-sector operators who may have limited access to conventional banking services.” — Hakama Sidi-Ali, CBN

As traditional banks continue to optimize costs by closing physical branches, agency banking networks and mobile money channels are expected to fill the gap for underbanked communities across the country.