Banks shut 476 branches in three years – CBN

Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, reducing their physical footprint by 8.8 per cent in three years, according to data from the Central Bank of Nigeria.

Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres across the country declined from 5,410 in 2022 to 4,934 in 2025.

The decline occurred despite an increase in the number of banks operating in the country over the period, pointing to a gradual contraction in physical banking locations.

An analysis by The PUNCH showed that the number of branches fell by 37 from 5,410 in 2022 to 5,373 in 2023. The pace of contraction accelerated in the following year, with 229 locations disappearing as the total dropped to 5,144 in 2024. Banks closed another net 210 locations in 2025, bringing the number down to 4,934.

Consequently, about 92 per cent of the 476 net reduction recorded over the three-year period occurred in 2024 and 2025. The CBN explained that 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.

The reduction in physical banking locations came even as the number of banks increased from 32 in 2022 to 33 in 2023 and 35 in 2024, before declining slightly to 34 in 2025. The number of branches operated abroad remained unchanged at two throughout the period.

A state-by-state analysis showed that Lagos recorded the largest decline in absolute terms. The country’s commercial hub had 1,602 branches and cash centres in 2022, but the figure fell to 1,532 in 2023 and 1,521 in 2024 before dropping further to 1,444 in 2025.

This meant banks closed a net 158 locations in Lagos within three years, representing a 9.9 per cent reduction. The state alone accounted for about one-third of the net decline recorded nationwide.

Despite the reduction, Lagos remained the dominant location for physical banking operations, accounting for about 29 per cent of the country’s 4,934 branches and cash centres in 2025.

The Federal Capital Territory also recorded a decline. The number of locations in Abuja stood at 400 in both 2022 and 2023 before falling to 391 in 2024 and 362 in 2025. This represented a net reduction of 38 branches and cash centres, or 9.5 per cent, over the three-year period.

Ekiti suffered one of the steepest contractions, with its branch network almost halving from 107 locations in 2022 to 57 in 2025, representing a decline of 50 locations or 46.7 per cent.

Enugu followed with a reduction of 44 locations from 162 to 118, while Oyo lost 41, declining from 237 to 196. Other states that recorded sizeable declines included Ondo, where the number 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 decline was also evident in some of the major commercial centres in northern Nigeria. Kano increased its physical banking locations from 164 in 2022 to 175 in 2023 and 183 in 2024. However, the number fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had three years earlier.

Kaduna followed a similar pattern, rising from 148 locations in 2022 to 156 in 2023 and 164 in 2024 before dropping to 146 in 2025.

Some states, however, recorded an expansion in their banking networks. Delta added 23 locations, with its total increasing from 173 in 2022 to 196 in 2025. Edo also rose from 155 to 165, while Jigawa increased from 31 to 37 and Kogi from 63 to 68.

The data further showed wide disparities in the distribution of physical banking infrastructure across the country. While Lagos alone had 1,444 locations in 2025, Yobe had 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi recorded 32.

For instance, Lagos alone accounted for more than 29 per cent of all branches and cash centres nationwide in 2025, highlighting the concentration of physical banking infrastructure in the country’s major economic centre.

The latest figures indicate that the contraction in the industry’s physical footprint has accelerated in recent years, underscoring how rapidly banking is migrating from brick-and-mortar to electronic platforms.

The PUNCH recently reported that the Central Bank of Nigeria called for greater adoption of alternative payment channels to expand access to financial services and stimulate economic activity.

Acting Director, Corporate Communications and Investor Relations Department of the CBN, Hakama Sidi-Ali, made the call at the 2026 CBN Fair in Lokoja, Kogi State.

Represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, she said alternative payment channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services.