Nigeria’s banking sector recorded a significant reduction in physical outlets over three years, as the number of branches and cash centres fell by a net 476 between 2022 and 2025, according to data from the Central Bank of Nigeria (CBN).
The number of branches and cash centres operated by commercial, merchant and non-interest banks fell from 5,410 in 2022 to 4,934 in 2025, representing an 8.8 per cent decline.
Data from the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the contraction accelerated in the last two years of the period. The number of locations declined by 37 in 2023, 229 in 2024 and another 210 in 2025.
About 92 per cent of the total reduction therefore occurred between 2024 and 2025.
The decline in physical outlets occurred despite the number of banks rising from 32 in 2022 to 35 in 2024, before dropping slightly to 34 in 2025. The number of Nigerian bank branches abroad remained at two throughout the period.
Lagos recorded the largest decline, with its branches and cash centres falling from 1,602 in 2022 to 1,444 in 2025. The reduction of 158 locations represented a 9.9 per cent decline and accounted for about one-third of the nationwide contraction.
Despite the reduction, Lagos remained the state with the highest concentration of banking outlets, accounting for about 29 per cent of the 4,934 branches and cash centres nationwide in 2025.
The Federal Capital Territory also recorded a decline, with its number of banking locations falling from 400 in 2022 to 362 in 2025, representing a reduction of 38 locations or 9.5 per cent.
Ekiti recorded one of the sharpest declines, as its branch network dropped from 107 locations in 2022 to 57 in 2025, representing a 46.7 per cent reduction.
Other states that recorded notable declines included Enugu, which lost 44 locations, Oyo with 41, Ondo with 22, Plateau with 19, Osun with 17, Cross River with 16 and Rivers with 15.
Some states, however, expanded their banking networks during the period. Delta recorded the largest increase, adding 23 locations to rise from 173 in 2022 to 196 in 2025. Edo, Jigawa and Kogi also recorded increases.
The data showed a wide disparity in the distribution of physical banking infrastructure across the country. While Lagos had 1,444 locations in 2025, Yobe had 23, Taraba 26 and Zamfara 28.
The decline in physical banking outlets comes amid the growing use of electronic and alternative payment channels, as banks increasingly rely on digital platforms to provide services to customers.