Nigeria’s banking landscape continued to undergo a structural shift in 2024, with lenders shutting down 229 physical branches nationwide as more customers relied on Point of Sale terminals for everyday transactions.
Figures from the Central Bank of Nigeria’s 2024 financial sector statistical bulletin show that the total number of Deposit Money Bank branches fell from 5,373 in 2023 to 5,144 in 2024, reflecting the growing dominance of electronic payment channels, particularly POS platforms.
The statistics cover branches and cash centres operated by commercial, merchant and non-interest banks across the 36 states and the Federal Capital Territory.
Although the number of licensed banks increased from 33 to 35 during the year, the industry’s physical footprint continued to contract, highlighting the rapid migration from traditional brick-and-mortar banking to digital and agent-based platforms.
Data from the CBN indicate that POS terminals have increasingly replaced visits to banking halls for many Nigerians. Transaction volumes processed through POS channels rose sharply from 9.85bn in 2023 to 13.08bn in 2024, an increase of about 3.23bn transactions, or roughly 33 per cent year on year.
Even more significant was the growth in transaction value, which more than doubled within the period. POS transaction value climbed from N110.35tn in 2023 to N223.27tn in 2024, representing an increase of about N112.93tn or 102 per cent.
While ATM usage also increased, its growth remained modest compared to POS activity. ATM transaction volumes edged up from 1.01bn to 1.02bn, translating to less than one per cent growth. Transaction value rose from N28.21tn to N29.12tn, an increase of about N909bn or just over three per cent.
These figures reinforce the growing centrality of POS terminals in consumer payments, eclipsing both cash withdrawals from ATMs and in-branch banking visits.
Branch closures, however, varied widely across states. Lagos State retained its position as Nigeria’s banking hub, recording the highest number of branches at 1,521 in 2024. Nevertheless, the state lost 11 branches during the year, down from 1,532 in 2023. Despite this decline, Lagos still maintained more than five times the number of branches found in any other state.
Ebonyi State experienced the steepest contraction nationwide, with branch numbers plunging from 120 in 2023 to just 31 in 2024, a loss of 89 outlets.
Other states that recorded notable reductions included Oyo State, which lost 26 branches to end the year with 200. Niger State saw its branch count fall by 32, from 108 to 76. Ekiti and Ondo States each recorded declines of 18 branches, dropping to 65 and 109 respectively.
Anambra and Ogun States each lost eight branches, while Cross River shed five and Plateau seven.
The Federal Capital Territory was not spared, losing nine branches to close the year with 391, down from 400 in 2023. This trend suggests that branch closures extended beyond rural or semi-urban areas to major commercial centres.
Not all parts of the country recorded declines. Delta State added six branches, increasing from 182 to 188. Rivers State grew from 272 to 280, while Edo, Kaduna and Kano States each recorded eight additional branches. Katsina gained three branches, Adamawa and Jigawa added two each, and Kogi recorded one new outlet.
These pockets of expansion indicate that banks are selectively increasing physical presence in areas with growing commercial activity or population growth, even as the national branch total continues to fall.
The changing structure of Nigeria’s financial system has been shaped by regulatory adjustments and accelerating technological adoption, forcing banks to rethink how services are delivered.
Rising inflation has also made customers more sensitive to charges, service reliability and transaction security, according to the 2025 KPMG West Africa Banking Industry Customer Experience Survey.
The report noted that as Nigerians increasingly migrate to digital platforms and POS channels, expectations around speed, transparency and problem resolution have intensified.
(PUNCH)
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