A new study conducted by Moniepoint Inc. has revealed a growing trend of digital payment adoption among traders in Nigeria’s North-East, particularly in Borno State, as a means to curb theft and improve financial management.
The report highlights how digital tools are becoming increasingly integrated into livestock and agricultural trade processes in the region, which has faced years of economic instability due to protracted conflict. Despite these challenges, the North-East remains a vital contributor to Nigeria’s non-oil economy, with agriculture accounting for 24.64 per cent of the country’s real GDP in the fourth quarter of 2024.
According to the findings, over 45 per cent of traders in Borno now accept digital payments, with 28.6 per cent of transactions conducted via mobile transfers and 17 per cent through Point of Sale (POS) systems. This marks a notable shift from traditional cash-based methods, a change largely accelerated by the 2023 nationwide cash shortage, which exposed the vulnerabilities of a cash-dependent economy.
Moniepoint’s digital tools, such as POS terminals and mobile credit alerts, have emerged as essential financial instruments for local traders and farmers. The company’s research indicates that the majority of food producers in the region are smallholder farmers, cultivating less than two hectares of land yet contributing significantly to the national food supply.
Borno State alone produces more than two million metric tonnes of staple crops annually. Maiduguri, the state capital, serves as a central hub for trade, with 51.2 per cent of surveyed traders sourcing and dispatching goods, including grains, livestock, vegetables, and agrochemicals, to cities across Nigeria and neighbouring countries.
Despite the scale of these operations, many transactions remain informal. The study found that payments are often conducted in person, credit is typically accessed through informal networks, and records are kept either mentally or on paper.
Notably, nearly 37 per cent of respondents reported being in business for more than ten years, reflecting the deep-rooted nature of trading in the region. Traders were also found to use various forms of transportation tailored to their needs and security concerns, including shared trucks (30.4 per cent), commercial tricycles (23.2 per cent), and motorcycles.
Moniepoint Inc.’s Chief Executive Officer, Tosin Eniolorunda, emphasized the broader impact of digital financial inclusion, stating:
“Moniepoint believes financial inclusion is not just about access, it’s about dignity. What’s happening in the North-East today is significant. Farmers and traders once excluded from formal systems are now part of a national digital network, able to access capital, manage risk, and grow.”
Eniolorunda added that building financial tools that align with the local realities of users is essential to unlocking sustainable economic development.
“By providing secure, reliable, and instant payment solutions, we are helping to de-risk their operations and connect them to the broader economy,” he said.
This latest study adds to Moniepoint’s growing body of research on Nigeria’s informal economy, following earlier reports on family-owned businesses, the Onitsha Market, women-led enterprises, and community pharmacies. Collectively, these studies highlight the transformative power of digital payment solutions across diverse sectors and regions in Nigeria.
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