Nigerian banks close hundreds of branches as POS transactions soar
Nigeria’s banking sector has seen a major reduction in physical branches, with customers increasingly relying on electronic payment channels. According to the Central Bank of Nigeria, the number of bank branches nationwide has dropped, while the use of Point of Sale (POS) terminals has surged. The trend highlights a shift in consumer behavior, as more Nigerians prefer digital and POS transactions over traditional banking. At the same time, customer expectations for speed and reliability are rising, putting pressure on banks to adapt.
What we know
- The Central Bank of Nigeria’s 2024 bulletin shows a drop in Deposit Money Bank branches from 5,373 in 2023 to 5,144 in 2024.
- POS transaction volumes jumped from 9.85bn in 2023 to 13.08bn in 2024, with transaction values rising from N110.35tn to N223.27tn.
- Lagos State had the highest number of branches at 1,521 in 2024, but still saw a decline from 1,532 in 2023.
- Ebonyi State experienced the largest drop, losing 89 branches, from 120 in 2023 to 31 in 2024.
- In December 2024, POS agents increased charges by about 100 per cent, and the CBN sanctioned nine banks with fines totaling N1.35bn for failing to ensure ATM cash availability.
