March 01, (THEWILL) — A recent case study conducted by Moniepoint has uncovered the growing prevalence of electronic transfers as a payment method throughout both urban and rural areas of Nigeria, while cash transactions are gradually fading away. This shift is largely attributed to the transformative assistance provided by the Nigeria Inter-Bank Settlement System (NIBSS), which supplies the necessary infrastructure that propels the e-payment ecosystem.
Moniepoint, a foremost Nigerian fintech platform, has become a major digital financial services outlet that helps individuals and businesses manage money, make payments, and access banking services. The platform focuses strongly on small and medium-sized businesses (SMEs), helping them reduce cash handling and manage their finances digitally.
What the report says
According to the new study titled ‘The Business of Community Nightlife in Nigeria’, the informal nightlife sector pulls in substantial economic activities across the states and is dominated by operators in different sectors.
Moniepoint noted that while high-end ‘Detty December’ venues grab headlines with daily revenues of N360 million and table prices reaching N1.2 million, its research shows the ‘community nightlife’ where roadside bars, suya spots, and neighbourhood joints form the bedrock of social life for millions of Nigerians.
The Moniepoint study drew its data from transactions across more than 27,000 clubs, bars, and lounges sitting on Moniepoint’s payment rails alongside fieldwork with nightlife operators and workers across the country. This was combined with field interviews and observational research across multiple Nigerian cities.
Part of the report read, “In stark contrast to wider informal economy trends, cash plays a diminishing role in nightlife payments.” The report shows that bank transfers dominate, followed closely by card payments, with cash actively discouraged due to security concerns.
Moniepoint’s data shows that transfers outpace card payments by nearly two million transactions during peak nighttime hours across its network.
“One of the study’s most operationally significant findings concerns the timing of spending. Nightlife in Nigeria runs long, but economically, the night is decided early. Transaction volumes begin climbing sharply from 8pm, peak before midnight, and then decline steadily even as venues remain full. By the time the night is at its longest, purchasing activity has already wound down.
“However, for bar operators, this has clear practical implications – the most critical hours for staffing, stocking, vendor payment and cash flow management are the earliest hours of the day, between midnight and 6 am,” the report read.
It was also revealed that local bars typically expand their workforce by 30-50 per cent on peak nights, highlighting the sector’s contribution to employment, with conservative estimates suggesting at least 54,000 people are engaged in nightlife labour every night across Nigeria.
“Nigeria’s local bars and nighttime operators are not peripheral to the economy; they are a critical part of its architecture. We see a substantial and sustained economic sector that employs hundreds of thousands of Nigerians every night and deserves the same attention we give to agriculture, healthcare, and retail.
“Our goal is to make sure every one of those businesses has the tools to grow. From giving credit to finance renovations and sound systems to providing same-day settlement that allows vendors to restock and with tools like Moniebook that power inventory management and reconciliation, Moniepoint is ensuring that this vital artery of the nation’s economy remains viable and empowering,” said Co-Founder and Group Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda.
Other key interesting findings include that the most common transaction narrations from the data sourced were “food”, “pay”, “sent”, “POS”, and “cash”, reflecting the full breadth of nightlife spending: street food, club entry, lounge tabs, transport, and afterparties. Digital payments have gained huge traction in Nigeria’s social space.
“While alcohol remains a key revenue driver, the data shows that food is the quiet stabiliser of Nigeria’s night economy, particularly in local and informal settings. In several neighbourhood venues, bottled water and meals outsell beer and spirits, especially early in the evening.
Hidden hands of NIBBS
This success story resulted from the digital infrastructure transformation provided by NIBBS to advance the country’s payment system. NIBBS provides the infrastructure support that drives the financial services industry, especially the payment systems, towards advancing business opportunities.
Unknown to many people, the reinforced commitment by NIBSS towards advancing the country’s financial inclusion strategy, played a major role in the business boom being witnessed across Nigeria’s expanse countryside through a massive e-payment system.
The company is established to create and champion transformative financial technologies designed to improve accessibility, security, and convenience for Nigerians; the effect of this commitment is what the Moniepoint study projects.
As an enabler, NIBSS is engaged in a silent revolution of the financial services sector which is “hidden” from the prying eyes of the public. This is accomplished through its mandate of focusing on problem-solving initiatives, resulting in the quality digital financial services being celebrated in the countryside.
In recent times, the rural areas have witnessed idle bank ATM terminals during festive periods, yet business boom occurs via digital payment transactions – such as transfers and POS services – never experienced in the past. Petrol filling stations, transporters like the bus, motor-cycle and tricycle operators, petty traders, market women who sell soup ingredients (pepper, crayfish, vegetables, spices, egusi, ogbono) have embraced digital payments.
Deeper support drive by NIBSS
According to its Managing Director/CEO, Premier Oiwoh, NIBBS upgrades its systems continuously. A reason for this is that NIBSS was established to carry on business as a service-oriented institution providing mechanisms for problem-solving innovations.
He explained that with over 65 million Bank Verification Numbers (BVN) holders enjoying the products offered by the financial services institutions, NIBSS plays a major role in facilitating the technology-based innovations that make for seamless financial transactions.
Oiwoh had said, “We are working to make Nigeria work; hence NIBSS must guarantee Nigeria’s efficient payment system. We will continually remain in our creative thinking because technology is about creating value, and collaboration is the key.”
Moniepoint’s nightlife spread
“Lagos leads in sheer concentration of nightlife establishments, with 4,856 bars, clubs, and lounges on the Moniepoint network. FCT follows with 2,515, then Rivers (2,362), Delta (1,930), and Edo (1,574). Katsina leads the country in nighttime food truck payment value, with vendors pulling in over N130m in the last 12 months. Kwara State leads in transaction count. Nigeria’s nightlife economy is distributed, not overly elitist,” the Moniepoint report stated.
On the lending side, the report noted that a significant share of loan requests from bar and lounge operators is directed toward renovations, furniture, lighting, and sound systems, showing that investments are intended to attract and retain customers in a competitive sector where ambience plays a decisive role.
Moniepoint said that it would continue to fuel the night-time sector through innovative features like “POS Transfers”, and by assigning a dedicated bank account to each terminal, the system provides an instant “audio-visual” confirmation, a signature “ping”, that allows service to continue without the friction of waiting for SMS alerts or verifying screenshots.
Furthermore, in addressing the unique safety needs of consumers, Moniepoint cards are designed without visible card numbers, expiry dates, or CVVs, ensuring that a customer’s financial information remains secure.
As a large distributor of financial services, Moniepoint processes billions in transactions monthly and continues to expand its reach, supporting millions of businesses with payments, banking, credit, and business management solutions, while NIBBS guarantees unending digital infrastructure support.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
