Digital payment infrastructure is transforming Nigeria’s food service industry by improving transaction efficiency, expanding access to financial services and helping businesses operate more effectively, according to a new report by fintech company Moniepoint.
The report, titled What It Takes to Feed Nigeria Every Day: The Payment Story Behind Its Food Service Industry, examines how digital payments, business management tools and data-driven financial services have reshaped the country’s food service sector over the past four decades.
According to the study, the adoption of real-time digital payment systems has helped move the industry away from a predominantly cash-based model into a more connected commercial ecosystem, contributing to the sector’s estimated value of $11.09 billion in 2025.
Moniepoint said digital infrastructure has addressed longstanding challenges such as delayed settlements, unreliable payment confirmations, theft and limited access to credit by enabling instant transaction verification and creating reliable financial records for businesses.
While bank transfers previously reduced dependence on cash, the report noted that manual payment verification often caused delays during peak business periods, including festive seasons such as Christmas, New Year and Eid celebrations.
Real-time digital payments now allow restaurants, quick-service operators and other food businesses to process transactions faster while generating verifiable records that support financial planning and access to formal banking services.
The report highlighted that many small and medium-sized food businesses have traditionally struggled to obtain financing because lenders relied heavily on physical collateral rather than business performance.
By using digital transaction histories to assess revenue patterns and cash flow, financial institutions are increasingly able to evaluate the creditworthiness of businesses without depending solely on asset-based collateral.
Moniepoint also noted that women own 86.8 per cent of businesses in Nigeria’s accommodation and food services sector, making it one of the country’s most female-dominated industries.
The report suggests that greater use of digital financial records could improve access to finance for women-owned businesses, which have historically faced significant barriers to securing credit.
Beyond payments, the study found that digital business management platforms such as Moniebook and Orda are helping food businesses integrate payment processing, inventory management, procurement and operational reporting into a single system.
According to the report, these tools enable businesses to monitor stock levels, manage production costs, reduce operational losses and make better business decisions.
Moniepoint disclosed that food and beverage businesses are now the second-largest merchant category on its platform after retail.
The company also recorded a 2,823 per cent increase in terminal usage among quick-service restaurants as cashless payment adoption continues to rise.
The report found that payment activity in the sector typically peaks between 1 p.m. and 2 p.m. during lunchtime, while online food delivery businesses experience sustained transaction volumes into the evening.
Despite the industry’s highly fragmented nature, Moniepoint said digital infrastructure is making food businesses more visible, measurable and better connected to Nigeria’s formal financial system, creating opportunities for long-term growth and expansion.