CBN Reveals Nigerian Banks Shut 476 Branches as Harsh Economy Accelerates Digital Shift
Abuja, Nigeria—September 14, 2026—Nigeria’s banking sector has undergone a significant contraction in its physical footprint, with Deposit Money Banks closing a net 476 branches and cash centers between 2022 and 2025, according to data released by the Central Bank of Nigeria.
The figures, contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector, show that the total number of bank branches and cash centers nationwide fell from 5,410 in 2022 to 4,934 in 2025—an 8.8 percent reduction over three years.
Sharp Acceleration in Recent Years
The decline was relatively modest at first, with only 37 locations closed between 2022 and 2023. The pace then quickened dramatically: banks shut 229 locations in 2024 and another 210 in 2025.
This means approximately 92 percent of the total net reduction occurred during the last two years under review.
Interestingly, the contraction took place even as the number of licensed banks rose from 32 in 2022 to a peak of 35 in 2024 before settling at 34 in 2025.
The data cover commercial, merchant and non-interest banks and were compiled from CBN and Nigeria Deposit Insurance Corporation records.
Lagos Leads in Absolute Closures
Lagos State recorded the largest absolute decline, losing 158 banking locations—dropping from 1,602 in 2022 to 1,444 in 2025 (a 9.9 percent reduction). Despite the losses, Lagos still accounts for roughly 29 percent of all physical banking points in the country.
Other states also saw notable reductions. Ekiti experienced one of the steepest percentage declines, falling from 107 to 57 locations.
Enugu lost 44 branches, while Oyo shed 41. The Federal Capital Territory declined from 400 to 362 locations.
A handful of states bucked the trend. Delta gained 23 locations, Edo added 10, while Jigawa and Kogi also recorded modest increases.
Access to physical banking remains highly uneven. While Lagos retains over 1,400 outlets, states such as Yobe (23), Taraba (26) and Zamfara (28) continue to operate with far fewer branches.
Digital Banking and Economic Pressures Drive the Change
Industry observers attribute the widespread closures primarily to the rapid adoption of digital and alternative banking channels, including mobile apps, internet banking, Point-of-Sale (POS) terminals, and agent banking.
Rising operational costs in a challenging macroeconomic environment—marked by inflation, currency pressures, and high energy prices—have further encouraged banks to streamline their physical networks.
Some commentary, including reports from Parallel Facts, has linked the branch reductions more directly to broader economic hardships experienced under the current administration.
Mainstream coverage, however, largely frames the development as part of a longer-term industry transition toward more efficient, technology-driven service delivery.
Implications for Customers and Financial Inclusion
While digital channels offer convenience for many urban customers, the shrinking physical network raises concerns about access for rural populations, the elderly, and those with limited digital literacy or unreliable internet connectivity.
Experts note that the trend places greater importance on expanding reliable agent banking, POS networks, and inclusive digital infrastructure.
As Nigeria’s banks continue to adapt, the CBN data paint a clear picture of an industry in transition—one that is becoming leaner in physical presence even as the number of licensed institutions remains relatively stable.
Further details from the full CBN Statistical Bulletin are expected to shed more light on the evolving structure of Nigeria’s financial services landscape.
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