NIGERIA’s banking industry is undergoing a major structural transformation, as the rapid rise of Point of Sale (PoS) transactions continues to erode the relevance of traditional brick-and-mortar banking.
New data from the Central Bank of Nigeria (CBN) obtained by News Point Nigeria show that 229 physical bank branches were shut across the country within one year, reflecting a decisive shift by customers toward electronic payment channels for everyday financial transactions.
According to the CBN’s 2024 Financial Sector Statistical Bulletin, the total number of Deposit Money Bank (DMB) branches and cash centres fell from 5,373 in 2023 to 5,144 in 2024, despite an increase in the number of licensed banks from 33 to 35 within the same period.
The figures, which cover commercial, merchant and non-interest banks across the 36 states and the Federal Capital Territory (FCT), highlight how Nigeria’s banking system is increasingly migrating away from physical locations to digital platforms.
At the heart of this transformation is the explosive growth in PoS usage, which has become the preferred alternative for millions of Nigerians who previously relied on banking halls and ATMs.
CBN data reveal that the volume of PoS transactions jumped from 9.85 billion in 2023 to 13.08 billion in 2024, representing an increase of 3.23 billion transactions, or about 33 per cent year-on-year growth.
Even more striking is the surge in transaction value. The total value of PoS transactions more than doubled, rising from ₦110.35 trillion in 2023 to ₦223.27 trillion in 2024—an increase of ₦112.93 trillion, equivalent to 102 per cent growth.
The sharp rise underscores the central role PoS terminals now play in retail payments, fund transfers, bill settlements and cash access, particularly in communities where bank branches are no longer easily accessible.
While Automated Teller Machines (ATMs) remain in use, their growth has been comparatively sluggish.
ATM transaction volumes increased marginally from 1.01 billion to 1.02 billion, representing less than one per cent growth. The value of ATM transactions rose modestly from ₦28.21 trillion to ₦29.12 trillion, an increase of about ₦909 billion, or just over three per cent.
The data clearly show that PoS channels have overtaken both ATMs and physical branches as the dominant medium for customer transactions.
The contraction in bank branch networks was not evenly distributed across the country.
Lagos State, Nigeria’s undisputed financial hub, continued to host the highest number of bank branches with 1,521 in 2024, although this represented a decline of 11 branches from 1,532 in 2023. Despite the drop, Lagos still accounted for more than five times the number of branches of any other state.
The most dramatic decline occurred in Ebonyi State, which lost 89 branches in a single year. The number of bank branches in the state plunged from 120 in 2023 to just 31 in 2024, marking the steepest contraction nationwide.
Other states that experienced significant reductions include Oyo State, which lost 26 branches to end the year with 200, and Niger State, where branch numbers fell by 32, from 108 to 76.
Ekiti and Ondo States each lost 18 branches, while Anambra and Ogun States recorded eight closures apiece. Cross River lost five branches, Plateau seven, and the Federal Capital Territory saw a reduction of nine branches, dropping from 400 to 391.
The decline in the FCT underscores that bank closures are no longer confined to rural or semi-urban areas but are increasingly affecting major commercial and administrative centres.
Despite the overall national decline, a number of states recorded modest growth in bank branch numbers.
Delta State added six new branches, increasing from 182 to 188, while Rivers State grew from 272 to 280. Edo, Kaduna and Kano States each gained eight additional branches.
Further gains were recorded in Katsina State (three branches), Adamawa and Jigawa States (two each), and Kogi State, which added one branch.
Analysts say these increases suggest that banks are now targeting branch expansion only in locations with strong commercial activity, rising populations or strategic economic importance.
The CBN figures highlight a banking sector under pressure to adapt, as technology, regulation and changing consumer behaviour continue to redefine how financial services are delivered.
With PoS terminals now embedded in markets, neighbourhoods and roadside shops nationwide, banks are increasingly rethinking the cost and relevance of maintaining extensive branch networks.