Nigerian banks have shut down 476 branches and cash centres in three years, with Lagos alone accounting for 158 of the closures, according to the Central Bank of Nigeria.
The CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres across the country dropped from 5,410 in 2022 to 4,934 in 2025, representing an 8.8 per cent reduction.
The contraction gathered pace in the last two years.
After 37 locations disappeared between 2022 and 2023, banks closed another 229 branches and cash centres in 2024. A further 210 locations were lost in 2025.
The development comes amid the rapid shift towards electronic and digital banking, with customers increasingly using mobile applications, USSD, internet banking and electronic payment channels instead of visiting physical branches.
Lagos was the hardest hit.
The commercial capital had 1,602 bank branches and cash centres in 2022, but the figure fell steadily to 1,532 in 2023, 1,521 in 2024 and 1,444 in 2025.
The decline means Lagos lost 158 physical banking locations, representing a 9.9 per cent drop and roughly one-third of the nationwide reduction.
Despite the closures, Lagos remained by far the country’s biggest banking hub, accounting for about 29 per cent of all bank branches and cash centres nationwide in 2025.
The Federal Capital Territory also recorded a significant decline, dropping from 400 locations in 2022 to 362 in 2025 — a loss of 38.
Ekiti recorded one of the steepest falls, losing almost half of its banking locations. Its branch network plunged from 107 in 2022 to just 57 in 2025, a reduction of 46.7 per cent.
Enugu lost 44 locations, falling from 162 to 118, while Oyo dropped from 237 to 196.
Other states recording notable declines included Ondo, which fell from 127 to 105; Plateau, from 80 to 61; Osun, from 113 to 96; Cross River, from 83 to 67; and Rivers, from 290 to 275.
The contraction was also recorded in major northern commercial centres.
Kano initially expanded from 164 locations in 2022 to 183 in 2024, before suffering a sharp drop to 157 in 2025.
Kaduna followed a similar pattern, rising from 148 locations in 2022 to 164 in 2024 before falling to 146 in 2025.
However, some states bucked the trend.
Delta increased from 173 locations in 2022 to 196 in 2025, while Edo rose from 155 to 165. Jigawa grew from 31 to 37, while Kogi increased from 63 to 68.
The figures also exposed a wide gap in access to physical banking infrastructure.
While Lagos had 1,444 branches and cash centres in 2025, Yobe had only 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi had 32.
Interestingly, the decline in branches occurred despite the number of banks increasing from 32 in 2022 to 35 in 2024, before dropping slightly to 34 in 2025.
The CBN said the statistics covered branches and cash centres operated by commercial, merchant and non-interest banks, with data sourced from the apex bank and the Nigeria Deposit Insurance Corporation.
The shrinking physical network comes as the CBN pushes for greater adoption of alternative payment channels.
Speaking at the 2026 CBN Fair in Lokoja, Kogi State, the Acting Director, Corporate Communications and Investor Relations Department of the apex bank, Hakama Sidi-Ali, stressed the importance of alternative payment channels in expanding financial access.
She said such channels were particularly important for farmers, traders, small businesses and informal-sector operators who might have limited access to conventional banking services.
The latest figures underline the changing face of banking in Nigeria, as financial institutions increasingly move away from traditional brick-and-mortar branches towards digital platforms.
