This research aimed to assess the disparity between urban and rural areas in the rate of early postpartum discharge after institutional vaginal birth in Nigeria. A nationally representative sample comprising 8,614 women aged 15–49 years was selected and examined. Multivariate decomposition analysis combined with the concentration index was applied to investigate the occurrence and urban-rural inequities in early maternal discharge following facility-based vaginal delivery. Around 65.6% of women in rural areas and 50.5% in urban areas experienced early maternal discharge. The distribution of early maternal discharge showed a pro-poor pattern. The concentration index was -0.0817 (SE = 0.0063; p < 0.001) for rural areas and -0.0346 (SE = 0.0083; p < 0.001) for urban areas. Differences in the composition of characteristics (endowments) between urban and rural settings accounted for approximately 17.6% of the gap in early maternal discharge, whereas 82.4% arose from variations in the effects of unexplained factors. In the decomposition analysis, factors such as multiple births, attainment of secondary or higher education, moderate to high autonomy in decision-making, and residence in the South South geopolitical zone reduced the urban-rural disparity in early maternal discharge. Conversely, birth in a private facility, household size of 5 or more members, and residence in the North East, South East, or South West geopolitical zones, respectively, increased the urban-rural disparity. The gap was further exacerbated by the uneven distribution of women with advanced education, reliance on private facilities, larger households, and living in the North East, South East, and South West regions. These findings highlight the need for tailored interventions targeting both systemic and individual factors to promote equitable postnatal services irrespective of geographical or socioeconomic status.