Moniepoint report: How digital payments are reshaping Nigeria's N11.09 trillion food service industry

Digital payments are revolutionising Nigeria's food service sector, now valued at $11.09 billion (N11.09 trillion), according to a new industry case study by Moniepoint Inc. The report projects the sector will grow to $19.31 billion by 2030, driven by food delivery platforms, cloud kitchens and modern quick-service restaurants.

From cash to digital: solving old problems

Nigeria's food service market has evolved from a cash-driven business into a digitally enabled ecosystem. Moniepoint's study shows that instant payments, automated transaction verification, inventory management and data-driven credit access are now powering the industry.

For decades, food businesses relied heavily on cash, exposing operators to theft, accounting errors and delayed settlements. Even after bank transfers became common, businesses struggled with manual confirmation of payments before releasing orders. The report found that payment verification during peak periods could delay transactions by between two and five minutes, especially during festive seasons like Christmas, New Year and Eid.

Disconnected payment and inventory systems also caused stock losses, financial leakages and poor oversight across multiple outlets.

Three key interventions driving growth

Moniepoint addressed these challenges through three major interventions: instant settlement of payments, automated transfer confirmation and credit based on verified transaction history rather than traditional collateral.

Same-day settlements now allow restaurant operators to purchase fresh inventory using proceeds from the previous day's sales, improving cash flow and business continuity. The adoption of these solutions, alongside Nigeria's cashless policy, contributed to a 2,823% increase in quick-service restaurant terminal usage.

Food and beverage businesses today represent the second-largest merchant category on Moniepoint's platform, behind only retail. The report traces the industry's journey from the establishment of UAC's Kingsway Rendezvous in 1973 and the launch of Mr Bigg's in 1986 to the emergence of chains like Chicken Republic.

Women entrepreneurs and the credit gap

The report highlights financing challenges faced by food entrepreneurs, particularly women. Citing International Finance Corporation data, it notes that Nigeria's MSME financing gap stood at $32.2 billion in 2022. Women own 86.8% of businesses in the accommodation and food services sector, making them disproportionately affected by limited access to traditional bank loans.

Moniepoint said its transaction-based lending model helps bridge this gap by using verified business performance instead of physical assets to assess loan eligibility.

Consumer behaviour and peak periods

The report provides fresh insights into consumer behaviour. Transaction volumes peak between 1 p.m. and 2 p.m., with another surge around 7 p.m., while online food delivery orders remain strong well beyond 10 p.m.

Card payment activity records its largest monthly increase between November and December. April is the slowest month, recording transactions 46.3% lower than December.

Moniepoint said the food service report is part of its broader research initiative to help regulators, investors and businesses understand how digital payment ecosystems are reshaping Nigeria's commercial landscape.

For Nigerian consumers and businesses, the shift means faster service, better access to credit and a growing industry projected to expand at an annual rate of 11.73% through 2030.