Nigeria’s Deposit Money Banks reduced their physical banking presence by 476 branches and cash centres between 2022 and 2025
According to data contained in the Central Bank of Nigeria’s 2025 Statistical Bulletin for the Financial Sector, the reduction represents an 88 per cent decline in the number of banking locations across the country during the three-year period, with the total number of branches and cash centres falling from 5,410 in 2022 to 4,934 in 2025.
The data, sourced from the CBN and the Nigeria Deposit Insurance Corporation, cover branches and cash centres operated by commercial banks, merchant banks and non-interest banks
An analysis of the figures showed that the decline became more pronounced after 2023
The number of banking locations fell by 37 in 2023, followed by a reduction of 229 in 2024 and a further 210 in 2025
This means that about 92 per cent of the total reduction recorded during the period occurred in the final two years
The contraction in physical banking infrastructure occurred despite an increase in the number of banks operating in Nigeria during part of the period
The number of banks rose from 32 in 2022 to 35 in 2024 before declining marginally to 34 in 2025
The number of branches operated by Nigerian banks outside the country, however, remained unchanged at two throughout the period
Lagos records largest decline
Lagos recorded the largest reduction in banking locations in absolute terms, with 158 branches and cash centres shut during the period under review
The state’s total number of locations declined from 1,602 in 2022 to 1,444 in 2025, representing a 99 per cent reduction.
Despite the decline, Lagos retained its position as the country’s largest concentration of physical banking infrastructure, accounting for about 29 per cent of the 4,934 banking locations recorded nationwide in 2025
The Federal Capital Territory also recorded a decline during the period, with its banking locations falling from 400 in 2022 to 362 in 2025
The reduction of 38 locations represented a 95 per cent contraction.
Ekiti State recorded one of the largest percentage declines, losing 50 banking locations during the period
Its total number of branches and cash centres fell from 107 in 2022 to 57 in 2025, representing a 467 per cent reduction.
Enugu also recorded a significant decline, with its banking locations dropping by 44, from 162 to 118
Oyo recorded a reduction of 41 locations, falling from 237 in 2022 to 196 in 2025
Other states that recorded notable reductions included Ondo, where banking locations 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
Kano, Kaduna record reversals
The data showed that the banking network in some northern states expanded before recording declines in the later years of the period
In Kano State, the number of banking locations increased from 164 in 2022 to 183 in 2024 before dropping sharply to 157 in 2025
The 2025 figure was seven locations below the state’s 2022 level
Kaduna recorded a similar trend, with its banking locations rising from 148 in 2022 to 164 in 2024 before declining to 146 in 2025
Despite the overall reduction recorded nationwide, some states expanded their physical banking networks during the period
Delta State added 23 locations, increasing from 173 in 2022 to 196 in 2025
Edo also recorded growth, with its total rising from 155 to 165 locations
Jigawa increased from 31 locations in 2022 to 37 in 2025, while Kogi rose from 63 to 68
Wide disparity in banking infrastructure
The CBN figures also highlighted significant differences in the distribution of physical banking infrastructure across the states
While Lagos had 1,444 branches and cash centres in 2025, Yobe had only 23
Taraba had 26 locations, while Zamfara had 28
Bayelsa and Gombe recorded 31 locations each, while Ebonyi had 32
The figures point to a heavy concentration of physical banking infrastructure in major commercial and economic centres, even as the banking sector continues to expand the use of electronic and alternative channels for financial transactions
The reduction in physical banking locations also comes amid increasing emphasis on alternative payment channels as part of efforts to deepen financial inclusion and broaden access to financial services
The acting Director of Corporate Communications and Investor Relations at the CBN, Hakama Sidi-Ali, recently stressed the importance of alternative payment channels at the 2026 CBN Fair in Lokoja, Kogi State
Sidi-Ali, who was represented by the CBN Lokoja Branch Controller, Zubairu Salihu, said alternative payment channels were particularly important to farmers, traders, small businesses and operators in the informal sector who might have limited access to conventional banking services
She said the increased adoption of such channels could help expand access to financial services while supporting economic activities among segments of the population that may not have easy access to traditional banking facilities