Nigeria’s banking industry is accelerating its transition toward digital and agent-based services, with 229 physical bank branches shut across the country within one year as customers increasingly rely on Point of Sale (PoS) terminals and other electronic payment channels for everyday transactions.
This development is contained in the Central Bank of Nigeria’s (CBN) 2024 Financial Sector Statistical Bulletin, which points to a major structural shift in how banking services are delivered and consumed nationwide.
According to the bulletin, the decline in brick-and-mortar bank branches reflects changing customer behaviour, as individuals and businesses now depend more on PoS operators, mobile banking applications, and other digital platforms for cash withdrawals, transfers, bill payments, and retail transactions.
The report noted that the growing acceptance of agent banking has significantly expanded access to financial services, especially in semi-urban and rural communities where traditional bank branches are scarce.
Industry analysts say the shift has enabled banks to optimise operating costs while expanding their reach through technology-driven channels. By leveraging PoS networks and digital infrastructure, banks are able to serve a wider customer base at lower cost, improve transaction speed, and enhance overall convenience.
The trend also underscores the progress of Nigeria’s financial inclusion drive, with PoS terminals playing a central role in bringing basic financial services closer to underserved populations.
As of 2024, the number of PoS agents across the country has continued to rise, creating employment opportunities and supporting small businesses within local communities, while reshaping the future of banking in Nigeria.
