Is Nigeria Really Ready for a Digital-Only Banking Future?

There was a time when going to the bank was an event. You dressed up, filled out a withdrawal slip, joined a queue and waited your turn. Today, much of that experience has moved into our phones.

According to Central Bank of Nigeria data cited in this article, Nigerian banks closed a net 476 branches and cash centres between 2022 and 2025, reducing physical banking locations from 5,410 to 4,934.

On the surface, that looks like progress. If customers can transfer money, pay bills and manage their accounts from home, why maintain expensive physical branches?

But as Nigeria moves deeper into digital banking, a bigger question deserves attention: is the country becoming digital fast enough for everyone to keep up?

For younger Nigerians, digital banking has become almost second nature. Banking apps and instant transfers offer speed and convenience without the need to visit a branch.

For many older Nigerians, however, a physical bank still provides something an app cannot easily replace: reassurance.

When a pension payment disappears, an ATM swallows a card or a transaction goes wrong, speaking to an actual person can provide a level of confidence that a digital interface may not.

Then there are the millions of Nigerians who rely on Point-of-Sale, or POS, businesses to access cash and carry out basic financial transactions.

For many POS operators, the business is more than a convenience for customers. It is a source of employment and income, particularly for young people and small-business owners.

But these operators face their own challenges. Keeping enough cash available can be difficult and may involve additional costs to source physical cash. Withdrawal limits and transaction charges can also put pressure on their businesses.

That creates an interesting contradiction.

Nigeria’s banking industry is becoming increasingly digital, while a significant informal financial network still depends heavily on cash.

When ‘Instant’ Transfers Aren’t Always Instant

There is another challenge: infrastructure.

A bank transfer may take only seconds when everything works properly. But when a transaction fails after an account has already been debited, the convenience can quickly disappear.

Customers can be left waiting for reversals, sometimes for hours, while trying to resolve a problem that began with what was supposed to be an instant transaction.

Nigeria’s push towards digital banking is also taking place alongside familiar infrastructure challenges, including unreliable electricity, poor internet connectivity and network disruptions.

What happens when the phone runs out of power? What if the data connection disappears? And what happens when the banking platform itself is unavailable?

A bank in your pocket is useful only when the infrastructure supporting it is reliable.

Digital Banking Should Not Leave People Behind

None of this means Nigeria should resist digital banking.

Banks cannot realistically maintain hundreds of physical branches simply because some customers still prefer face-to-face services. Digital banking has the potential to reduce costs, expand access and make everyday financial transactions significantly easier.

But progress should not be measured only by the number of branches that close or the number of people downloading banking apps.

The more important measure is whether Nigerians can use the financial system reliably, regardless of their age or livelihood.

The 22-year-old who prefers an app should be able to use it with confidence. The 72-year-old who wants to speak to someone at a counter should not feel abandoned. And the POS operator on a street corner should be able to access enough cash to keep the business running.

Nigeria may be moving towards a banking system where physical branches eventually become the exception rather than the rule. That transition is not necessarily a bad thing.

But digital progress should come with inclusion.

The young Nigerian may want an app. The older Nigerian may still want a counter. The POS operator may need cash.

Perhaps true progress is finding room for all three.

After all, there is little point building the bank of the future if that future cannot guarantee reliable electricity, dependable internet connectivity, access to cash and quick reversals when money mysteriously disappears into cyberspace.

By Awobajo Soliat

Written by Boom RadioNG