Assessment of Bank Branch Network Expansion and Deposit Mobilisation in Zamfara State

Bank branch network expansion is a traditional strategy for deposit mobilisation, and its effectiveness in remote North West Nigerian states such as Zamfara, where financial access is severely constrained, requires empirical investigation. This study assesses the relationship between bank branch network expansion and deposit mobilisation in Zamfara State. Secondary data were sourced from the Central Bank of Nigeria branch licensing records and consolidated bank balance sheet data for the period 2015 to 2022. Branch network growth was measured by the annual change in number of licensed bank branches per Local Government Area. Deposit mobilisation was measured by total bank deposits, savings deposits, and demand deposits. Pearson correlation and Granger causality tests were employed. Results confirmed a significant positive correlation between branch network expansion and total deposit growth (r = 0.71, p < 0.05). Granger causality tests indicated bidirectional causality between branch expansion and savings deposit growth over a two-year lag, suggesting that branches generate new depositors while rising deposit demand also encourages new branch openings. However, branches in rural Zamfara Local Government Areas underperformed urban branches in deposit mobilisation by a ratio of 1:4.3. The study concludes that branch expansion remains a relevant deposit mobilisation strategy in Zamfara State but must be paired with community engagement programmes and simplified account opening procedures to achieve meaningful rural deposit growth in the North West zone. Keywords: bank branch expansion, deposit mobilisation, Zamfara State, financial access, North West Nigeria