A deserted commercial bank branch in Nigeria showing the transition from brick-and-mortar banking to digital POS payment channels.

A major shift hits the Nigeria Bank sector as 229 branches close, while POS transactions skyrocket by over 100%.

The landscape of the Nigeria Bank industry is undergoing a radical transformation as traditional brick-and-mortar locations give way to a digital-first economy. 

According to the Central Bank of Nigeria (CBN) 2024 Financial Sector Statistical Bulletin, the country saw a staggering closure of 229 physical bank branches within a single year.

The data reveals that the total number of Deposit Money Bank branches fell from 5,373 in 2023 to 5,144 in 2024. This contraction occurred despite the licensing of two new banks during the same period, signaling a deliberate pivot toward electronic channels.

While physical doors are closing, the Point of Sale (POS) sector is booming. Nigerians are increasingly shunning banking halls for the convenience of local agents.

  • Transaction Value: The value of POS payments more than doubled, jumping from N110.35tn in 2023 to N223.27tn in 2024—a massive 102% increase.
  • Transaction Volume: Volumes rose by 33%, reaching 13.08 billion transactions.
  • ATM Stagnation: In contrast, ATM usage grew by less than 1%, as cash scarcity and machine downtime drove customers toward mobile and agent-led alternatives.

State-by-State Breakdown: Winners and Losers

The decline in physical banking was felt most sharply in the South-East and Northern regions. Ebonyi State recorded the most dramatic crash, losing 89 branches nearly 75% of its total presence leaving the state with just 31 functional branches.

State / Territory

2023 Branches

2024 Branches

Change

Lagos

1,532

1,521

-11

FCT (Abuja)

400

391

-9

Ebonyi

120

31

-89

Niger

108

76

-32

Oyo

226

200

Interestingly, a few states bucked the trend. Delta, Rivers, Edo, Kaduna, and Kano all recorded marginal increases in branch numbers, likely following localized commercial booms.

Financial analysts point to several factors for this "digital migration." Persistent cash scarcity at ATMs, particularly during the festive seasons, has forced Nigerians to rely on POS agents, even when faced with high surcharges.

The 2025 KPMG West Africa Banking Survey highlights that while traditional banks struggle with structural constraints, fintech leaders like OPay and Moniepoint are capturing the SME market by offering faster processing times and more reliable uptime.

To combat the ongoing frustration of empty ATMs, the CBN recently imposed fines totaling N1.35 billion on nine major banks including First Bank, Zenith, and UBA. 

Each bank was debited N150 million for failing to dispense cash during spot checks, as the apex bank insists that digital growth should not come at the expense of basic cash accessibility.