Nigerian banks closed a net 476 branches and cash centres between 2022 and 2025, representing an 8.8 per cent reduction in their physical banking locations, according to data from the Central Bank of Nigeria (CBN).
The decline reflects the banking sector’s increasing shift towards digital services as customers increasingly rely on mobile banking, internet banking, ATMs and other electronic channels for everyday transactions.
The CBN data, reported by Punch on Monday, September 14, showed that the reduction occurred over a three-year period as financial institutions continued to reassess the need for maintaining extensive physical branch networks.
The move towards digital banking has helped banks reduce some operational costs while allowing customers to carry out transactions without visiting branches. However, the continued closure of physical locations also raises questions about access to banking services, particularly for customers in communities where digital infrastructure and reliable internet connectivity remain limited.
Nigeria’s financial sector has undergone significant changes in recent years as regulators and banks have pushed electronic payments and digital financial services. The development is also consistent with the country’s broader transition towards a more technology-driven financial system.
Despite the reduction in physical branches, banks continue to maintain digital channels and selected branches for services that require face-to-face interaction.
