By RismadarVoice Reporters
January 4, 2026
Nigeria’s banking industry shut 229 physical branches in 2024 as customers increasingly relied on Point of Sale (POS) terminals for everyday transactions, according to the Central Bank of Nigeria’s 2024 Financial Sector Statistical Bulletin.
CBN data showed that the number of Deposit Money Bank branches declined from 5,373 in 2023 to 5,144 in 2024, despite a rise in the number of licensed banks from 33 to 35
during the same period.
The figures cover branches and cash centres of commercial, merchant, and non-interest banks across the 36 states and the Federal Capital Territory.
The contraction highlights the rapid migration of banking services from brick-and-mortar locations to electronic platforms, particularly POS channels.
The bulletin revealed a sharp rise in POS usage.
Transaction volume increased from 9.85 billion in 2023 to 13.08 billion in 2024, representing an additional 3.23 billion transactions or a 33 per cent year-on-year increase.
More striking was the growth in transaction value, which more than doubled from ₦110.35 trillion to ₦223.27 trillion, an increase of ₦112.93 trillion or 102 per cent.
By contrast, ATM usage grew marginally. Transaction volume edged up from 1.01 billion to 1.02 billion, while value rose from ₦28.21 trillion to ₦29.12 trillion, an increase of just over three per cent.
The figures underscore the growing dominance of POS terminals in consumer payments, far outpacing ATM withdrawals and physical branch visits.
Lagos State remained Nigeria’s banking hub with 1,521 branches in 2024, despite losing 11 branches from the previous year.
The state still had more than five times the number of branches of any other state.
Ebonyi State recorded the sharpest decline, with branches crashing from 120 to 31, a loss of 89 outlets in one year.
Other notable declines were recorded in Niger State (down 32 branches to 76), Oyo State (down 26 to 200), Ekiti (down 18 to 65), and Ondo (down 18 to 109).
The Federal Capital Territory also lost nine branches, falling from 400 to 391.
However, some states recorded expansions.
Rivers State added eight branches to reach 280, Delta State gained six to hit 188, while Edo, Kaduna, and Kano each added eight.
Smaller increases were recorded in Katsina, Adamawa, Jigawa, and Kogi.
According to the 2025 KPMG West Africa Banking Industry Customer Experience Survey, customers are becoming increasingly sensitive to charges, transaction failures, delays, and service reliability as digital adoption accelerates.
While trust and integrity remain key confidence drivers, the report noted declining tolerance for poor service delivery, particularly among SMEs.
Fintech firms such as OPay and Moniepoint continued to outperform traditional banks, especially in speed, uptime, and ease of use, with POS networks and mobile wallets increasingly serving as primary channels for daily financial transactions.
The surge in POS transactions occurred despite rising charges.
In December 2024, POS agents reportedly increased withdrawal fees by up to 100 per cent, charging as much as ₦200 per ₦5,000.
Many bank ATMs were empty, while in-branch withdrawals were often capped at ₦10,000 or ₦20,000, despite warnings from the CBN.
In response, the apex bank sanctioned nine Deposit Money Banks, fining each ₦150 million, for failing to ensure ATM cash availability during the festive period.
The affected banks include Fidelity, First Bank, Keystone, Union, Globus, Providus, Zenith, UBA, and Sterling Bank, with fines totalling ₦1.35 billion to be debited directly from their CBN accounts.
