Nigeria’s banking landscape is undergoing a major transformation as 229 bank branches were shut down within one year,

signaling a decisive shift away from traditional banking halls toward digital and agent-based transactions.

New data from the Central Bank of Nigeria (CBN) also shows that the rapid growth of Point of Sale (POS) transactions is at the heart of this change.

Banks Close 229 Branches Amid Nigeria’s Digital Payment Boom

According to the CBN’s latest Financial Sector Statistics, the total number of commercial bank branches and cash centres across the country fell from 5,373 in 2023 to 5,144 in 2024.

This decline occurred despite the number of licensed banks increasing during the same period, underscoring a strategic pivot rather than a sector-wide contraction.

Banks are increasingly rationalising physical infrastructure as customers migrate to faster, more accessible digital channels.

POS Transactions Overtake Traditional Banking Channels

The numbers behind POS usage are striking. In 2024, POS transaction volumes rose from 9.85 billion to 13.08 billion, while the value of transactions more than doubled, climbing from ₦110.35 trillion to ₦223.27 trillion.

This explosive growth has positioned POS terminals as Nigeria’s dominant payment channel, far surpassing ATM withdrawals and in-branch transactions. For millions of Nigerians, everyday banking now happens in neighbourhood shops, markets, and roadside kiosks rather than inside bank halls.

CBN Data Reveals Major Shift in Consumer Banking Behaviour

The data reflects a fundamental change in how Nigerians interact with financial services.

Convenience, speed, and proximity have become key drivers, especially in urban centres and the informal economy.

POS agents now provide services ranging from cash withdrawals and transfers to bill payments, often operating longer hours than traditional banks.

Meanwhile, ATM usage recorded only marginal growth, reinforcing the view that Nigerians increasingly prefer agent-led and mobile-enabled transactions.

Lagos Retains Lead as Rural States Lose More Bank Branches

Despite the closures, Lagos State remains Nigeria’s banking hub, retaining over 1,500 bank branches in 2024, even after a slight reduction.

However, the impact has been more severe in less urbanised states.

Some states recorded sharp drops in branch numbers, raising concerns about physical access to banking services in rural areas.

What the Branch Closures Mean for Customers and Small Businesses

For customers, the shift offers convenience but also presents challenges.

POS transaction fees, cash availability, and inconsistent service quality remain key concerns.

For small businesses, POS terminals have become essential tools for daily operations,

reinforcing their role in Nigeria’s push toward a cash-light economy.

Why Nigerian Banks Are Scaling Back Physical Branches

Maintaining brick-and-mortar branches is costly. As digital adoption rises, banks are reallocating resources toward mobile apps, digital infrastructure, and agency banking networks.

Analysts say this trend aligns with global banking practices but is particularly significant in Nigeria, where financial inclusion is increasingly driven by technology.

Looking Ahead

The closure of 229 bank branches is more than a cost-cutting move, it marks a structural shift in Nigeria’s financial system.

As POS and digital payments continue to grow, traditional banking models will keep evolving, reshaping how Nigerians save, spend, and transact in the years ahead.

After 20 years of leading the company, Aliko Dangote has stepped down as Chairman of the Board of Dangote Sugar Refinery Plc.

Temitope Hassan, the secretary of the company, signed a statement on Wednesday stating that his retirement will begin on June 16, 2025.

Dangote, who has been in charge since 2005, is recognized for having strengthened corporate governance,

managed significant expansion projects, and guided the Sugar factory into a market leader in Nigeria’s sugar industry.

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“In line with the principles of good corporate governance and succession planning, Dangote Sugar Refinery Plc

hereby announces the retirement of our esteemed Chairman of the Board of Directors of the Company, Alhaji Aliko Dangote (GCON), effective June 16, 2025,” the statement read.

According to the statement, the company undertook important Backward Integration Projects in Adamawa, Taraba, and Nasarawa States under his direction

in order to boost domestic sugar production and lessen reliance on imports.

Meet Arnold Ekpe, The New Chairman Of Dangote Sugar

Furthermore the Board has appointed Independent Non-Executive Director, Arnold Ekpe, as the new chairman.

“Following a rigorous selection and transition process,

the Board is pleased to announce the appointment of Mr. Arnold Ekpe, Independent Non-Executive Director

as the new Chairman of Dangote Sugar Refinery Plc. effective 16th June 2025,” the statement added.

Ekpe is a seasoned banker and former group CEO of Ecobank, with extensive boardroom and leadership experience across sectors.

“We welcome Mr. Ekpe to his new role and look forward to the next chapter in our Company’s journey under his leadership.

We also express our deep appreciation to Alhaji Aliko 

for his years of exemplary service and unwavering commitment to excellence,” the statement concluded.

Now you understand why Dangote is the richest man in Africa?

The man understands the rigors of business, and with this move,

we are sure that the sugar factory will continue to make huge profits for the Dangote Dynasty