Access, Zenith, UBA, Others Shut 229 Bank Branches as PoS Operators Take Over

Nigeria’s banking landscape is undergoing a quiet but profound transformation. In the space of one year, Deposit Money Banks shut 229 physical branches nationwide as customers increasingly shifted everyday transactions to Point of Sale terminals and other electronic channels, as reported by legit.

According to the Central Bank of Nigeria’s 2024 Financial Sector Statistical Bulletin, the total number of bank branches and cash centres fell from 5,373 in 2023 to 5,144 in 2024.

This decline occurred despite the number of licensed banks rising from 33 to 35, highlighting a clear shift away from brick-and-mortar banking toward digital platforms.

PoS transactions surge as branches shrink The CBN data shows that POS terminals have firmly established themselves as the preferred alternative to visiting banking halls.

Transaction volumes through POS channels jumped from 9.85 billion in 2023 to 13.08 billion in 2024, an increase of 3.23 billion transactions or about 33% year on year.

Even more striking was the growth in transaction value. POS transactions more than doubled, rising from N110.35 trillion in 2023 to N223.27 trillion in 2024. This represents an increase of N112.93 trillion or roughly 102% in just one year.

According to a report by Punch, ATM usage, by contrast, grew only marginally. Transaction volumes edged up from 1.01 billion to 1.02 billion, while transaction value rose modestly from N28.21 trillion to N29.12 trillion.

The figures underscore how POS terminals have become far more central to consumer payments than ATMs or physical branches. Uneven bank closures across states The contraction in bank branches was not evenly distributed. Lagos State remained Nigeria’s banking hub with 1,521 branches in 2024, though this was down by 11 from the previous year.

Even with the decline, Lagos still had more than five times the number of branches in any other state.

According to the Central Bank of Nigeria’s 2024 Financial Sector Statistical Bulletin, the total number of bank branches and cash centres fell from 5,373 in 2023 to 5,144 in 2024.

This decline occurred despite the number of licensed banks rising from 33 to 35, highlighting a clear shift away from brick-and-mortar banking toward digital platforms.

PoS transactions surge as branches shrink The CBN data shows that POS terminals have firmly established themselves as the preferred alternative to visiting banking halls.

Transaction volumes through POS channels jumped from 9.85 billion in 2023 to 13.08 billion in 2024, an increase of 3.23 billion transactions or about 33% year on year.

Even more striking was the growth in transaction value. POS transactions more than doubled, rising from N110.35 trillion in 2023 to N223.27 trillion in 2024. This represents an increase of N112.93 trillion or roughly 102% in just one year.

According to a report by Punch, ATM usage, by contrast, grew only marginally. Transaction volumes edged up from 1.01 billion to 1.02 billion, while transaction value rose modestly from N28.21 trillion to N29.12 trillion.

The figures underscore how POS terminals have become far more central to consumer payments than ATMs or physical branches.

Uneven bank closures across states

The contraction in bank branches was not evenly distributed.

Lagos State remained Nigeria’s banking hub with 1,521 branches in 2024, though this was down by 11 from the previous year.

Even with the decline, Lagos still had more than five times the number of branches in any other state.

Ebonyi recorded the sharpest contraction nationwide. Branch numbers in the state collapsed from 120 in 2023 to just 31 in 2024, a loss of 89 outlets.

Niger State also saw a steep decline, shedding 32 branches, while Oyo lost 26. Ekiti and Ondo each recorded 18 closures.

Anambra and Ogun lost eight branches apiece, Plateau lost seven, and Cross River five.

The Federal Capital Territory was not spared, with branch numbers falling from 400 to 391, signalling that closures extended beyond rural areas into major commercial centres.

States still adding bank branches 

Not all regions experienced a retreat.

Delta State added six branches, while Rivers increased its count by eight.

Edo, Kaduna and Kano also gained eight branches each. Katsina added three, Adamawa and Jigawa two each, and Kogi one.

These gains suggest that banks are now more selective, expanding physical presence only in areas with growing populations or commercial activity, even as the national footprint continues to shrink.

Customer experience and the fintech effect 

The shift toward POS and digital channels is also reshaping customer expectations.

The 2025 KPMG West Africa Banking Industry Customer Experience Survey notes that Nigerians are increasingly intolerant of failed transactions, delays and complex processes. While trust and integrity remain central to confidence in banks, KPMG found that customer experience in the SME segment declined slightly, driven largely by traditional banks.

Fintech players such as OPay and Moniepoint continued to gain ground, particularly in speed, reliability and ease of use.

KPMG observed that expanded POS networks and mobile wallets have entrenched fintechs as primary channels for daily financial interactions, rather than mere alternatives to banks.

Cash scarcity and rising PoS charges The surge in POS usage has also been shaped by repeated cash shortages. In December 2024, many POS agents doubled withdrawal charges, collecting as much as N200 per N5,000. With ATMs largely empty, customers had little choice.

Despite CBN warnings, several banks failed to ensure cash availability. The apex bank later fined nine lenders N1.35 billion in total for non-compliance, debiting N150 million each from their CBN accounts.

The episode reinforced a reality already evident in the data: for millions of Nigerians, POS operators have effectively taken over the frontline of everyday banking.