Nigerian banks shut down 229 physical branches within one year as customers increasingly relied on Point of Sale (POS) terminals for daily transactions. Data from the Central Bank of Nigeria (CBN) show a clear shift away from traditional banking halls toward electronic payment channels.
According to the CBN’s 2024 financial sector statistical bulletin, the number of Deposit Money Bank branches fell from 5,373 in 2023 to 5,144 in 2024. Meanwhile, electronic payments expanded rapidly, with POS transactions recording the strongest growth.
Nigerian banks lose branches despite rise in licensed lenders
The data cover branches and cash centres of commercial, merchant, and non-interest banks across Nigeria’s 36 states and the Federal Capital Territory. Notably, the total number of licensed banks increased from 33 to 35 in 2024. However, the physical footprint of Nigerian banks continued to shrink.
The figures show that customers now prefer POS terminals to visiting bank branches. As a result, POS usage has become central to everyday financial activity across the country.
POS transactions outpace ATM usage
CBN data reveal that POS transaction volume rose from 9.85 billion in 2023 to 13.08 billion in 2024. This represents an increase of about 3.23 billion transactions, or roughly 33 per cent year-on-year.
More strikingly, the value of POS transactions more than doubled. It climbed from ₦110.35 trillion in 2023 to ₦223.27 trillion in 2024, an increase of ₦112.93 trillion or 102 per cent.
In contrast, ATM usage grew only slightly. ATM transaction volumes edged up from 1.01 billion to 1.02 billion, while transaction value increased from ₦28.21 trillion to ₦29.12 trillion.
Lagos, Ebonyi record sharp branch changes
Branch closures did not occur evenly nationwide. Lagos State remained Nigeria’s banking hub with 1,521 branches in 2024. However, it still lost 11 branches within the year.
Ebonyi State recorded the steepest decline, losing 89 branches as its total dropped from 120 to 31. Oyo, Niger, Ekiti, and Ondo also saw notable reductions. Meanwhile, some states, including Delta, Rivers, Edo, Kaduna, and Kano, recorded modest increases in branch numbers.
Digital shift reshapes banking experience
Analysts link the POS surge to cash scarcity, expanding agent banking networks, and the convenience of local financial access. In addition, inflationary pressure has made customers more sensitive to charges and service quality.
A recent KPMG West Africa Banking Industry Customer Experience Survey noted that fintech firms continue to outperform traditional Nigerian banks, especially in speed, reliability, and ease of use. As digital adoption grows, expectations around transparency and service resolution continue to rise.
