Major Nigerian Banks Shut Branches And ATMs Nationwide, CBN Data Shows Affected States
- Nigeria's banks closed 229 branches in one year amid a digital banking boom
- Ebonyi State saw the largest branch reductions, losing 89 locations nationwide
- Lagos remains Nigeria's banking hub, despite a small reduction in branches
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s banking landscape is undergoing a major transformation as commercial, merchant and non-interest banks closed 229 branches and cash centres across the country in one year.
Data from the Central Bank of Nigeria’s Financial Sector Statistical Bulletin showed that the number of bank branches fell from 5,373 in 2023 to 5,144 in 2024.
Source: UGC
The sharp reduction highlights the growing shift away from traditional banking halls as customers increasingly embrace electronic transfers, mobile banking and Point of Sale (PoS) services.
The development also signals a broader restructuring across the banking industry, with financial institutions increasingly reassessing the cost and relevance of maintaining physical locations in an increasingly digital market, according to a report by Punch.
Digital payments drive the shift
The decline in physical branches comes amid rapid growth in electronic payment channels across Nigeria.
Customers now have access to mobile banking applications, internet banking, USSD services and PoS terminals, reducing the need to visit bank branches for routine transactions.
PoS operators, in particular, have become an important part of Nigeria’s financial services ecosystem, providing cash withdrawals, transfers and other basic services within communities.
For banks, the migration of customers to digital channels can reduce the cost of maintaining large branch networks while allowing institutions to concentrate physical operations in locations with stronger commercial demand.
However, the closures have raised concerns about access to formal banking services, particularly in communities where digital infrastructure and reliable internet connectivity remain limited.
Ebonyi suffers biggest blow
The impact of the closures was uneven across the country, with some states recording substantially larger reductions than others.
Ebonyi recorded the most dramatic decline, losing 89 branches during the period. Its branch network fell from 120 to just 31, representing one of the steepest reductions recorded nationwide.
Niger State followed, losing 32 branches as its total dropped from 108 to 76.
Oyo State recorded a decline of 26 branches, leaving it with 200, while Ekiti and Ondo each lost 18 branches. Ekiti’s total fell from 83 to 65, while Ondo declined from 127 to 109.
The Federal Capital Territory also recorded a reduction, losing nine branches and falling from 400 to 391.
Other states affected included Anambra and Ogun, which each lost eight branches, Plateau with seven and Cross River with five.
Lagos remains Nigeria’s banking hub
Despite losing 11 branches, Lagos remained overwhelmingly dominant in Nigeria’s physical banking network.
The state had 1,521 bank branches in 2024, far exceeding every other state and reinforcing its position as the country’s leading financial and commercial centre.
The relatively small reduction compared with other states suggests that banks continue to maintain a strong physical presence in Lagos because of its population, business activity and concentration of financial transactions.
Some states added branches
The nationwide decline was not universal. Several states actually recorded increases in their banking footprints during the period.
Rivers, Edo, Kaduna and Kano each gained eight branches, while Delta added six.
Smaller increases were also recorded in Katsina, Adamawa, Jigawa and Kogi.
The contrasting figures indicate that banks are not simply abandoning physical branches altogether. Instead, they appear to be reallocating their networks towards areas where commercial activity, customer demand and economic opportunities justify a physical presence.
A new era for Nigerian banking
Source: Getty Images
The 229-branch reduction reflects a banking industry being reshaped by technology and changing customer behaviour.
While digital banking offers convenience and lower operating costs, the continued closure of physical outlets could create challenges for customers who depend heavily on cash and face-to-face banking services.
For Nigerian banks, the challenge will be finding the right balance between digital expansion and maintaining enough physical infrastructure to serve customers who cannot easily migrate to online financial services.
CBN releases new rule for bank charges
Legit.ng earlier reported that Nigerian bank customers have a detailed rulebook governing what financial institutions can charge for various services, from electronic transfers and ATM withdrawals to loans, cards, cash transactions and account maintenance.
The Central Bank of Nigeria’s Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions, which took effect on January 1, 2020, was designed to promote transparency, flexibility and competition in the financial sector.
The guide applies to financial institutions licensed or regulated by the CBN and requires institutions to disclose applicable fees to customers at the point of a transaction.
Source: Legit.ng
