A new study by Moniepoint Inc. has shown that traders in Nigeria’s North-East region, particularly in Borno State, are increasingly adopting digital payment solutions to enhance security, reduce theft, and simplify their accounting processes. This development is part of a growing shift towards financial inclusion in the region, which has long been economically impacted by a decade of insurgency and insecurity.
Moniepoint, a leading financial services provider, revealed that digital tools are now gaining ground in the livestock trade and other market sectors in the North-East. The financial institution noted that the adoption of these solutions has been accelerated since Nigeria’s cash crunch in 2023, which exposed the vulnerabilities of cash-dependent trading. According to the findings, over 45 percent of traders in Borno State now accept digital payments. Specifically, bank transfers account for 28.6 percent of transactions, while the use of Point-of-Sale (POS) terminals stands at 17 percent.
The North-East remains a vital region in Nigeria’s agricultural economy. The sector contributed 24.64 percent to Nigeria’s real Gross Domestic Product (GDP) in the fourth quarter of 2024. Borno State alone produces over two million metric tonnes of staple crops annually, driven largely by smallholder farmers who cultivate less than two hectares each. Despite these contributions, most transactions still take place in the informal sector, often outside the formal banking system.
The Moniepoint report highlighted that Maiduguri, the Borno State capital, serves as the main hub where 51.2 percent of traders source their goods. From Maiduguri, these goods, including livestock, grains, vegetables, and agrochemicals, are distributed to cities across Nigeria and neighbouring countries. The informal credit system remains dominant, with payments often made in person, and records kept either in memory or handwritten ledgers, reflecting the low penetration of formal financial services.
Transportation of goods remains diverse and flexible in the region. The study found that 30.4 percent of traders use shared trucks for bulk transportation, while 23.2 percent opt for commercial tricycles for more agile deliveries. Others rely on motorcycles, enabling traders to adapt to varying security conditions, shipment sizes, and time constraints.
Nearly 37 percent of food chain actors surveyed have been in business for over a decade, showcasing deep local knowledge and resilience passed through generations. This continuity in enterprise underpins the region’s role in supporting Nigeria’s food security despite persistent challenges.
Speaking on the significance of the study, Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda, said the adoption of digital payments is not just a matter of financial access but a path to dignity and empowerment. “Moniepoint believes financial inclusion is not just about access. It’s about dignity, about enabling people to transact on their terms. What’s happening in the North-East today is significant. Farmers and traders who were once excluded from formal systems are now part of a national digital network, able to access capital, manage risk, and grow,” he stated.
Eniolorunda further noted that Moniepoint’s digital solutions are helping to de-risk operations for traders and connect them to Nigeria’s broader economy. “By providing secure, reliable, and instant payment solutions, we are helping to de-risk their operations and connect them to the broader national economy. The data shows that when you build on the organic, trust-based networks that already exist, you don’t just support socio-economic development, you accelerate it,” he added.
This latest research follows previous studies by Moniepoint on Nigeria’s informal economy, including case studies on family-owned businesses, Onitsha Market in the South-East, community pharmacies, and women-owned enterprises. The collective findings from these studies underline the transformative impact of digital payment solutions in enhancing Nigeria’s commercial landscape across various sectors and market structures.
The adoption of digital payments in the North-East is particularly significant given the region’s history of economic disruption due to insurgency. By integrating digital financial services, traders are not only safeguarding their earnings but also positioning themselves within Nigeria’s evolving cashless economy.
As Nigeria continues to push for greater financial inclusion, Moniepoint’s data suggests that connecting informal sector actors to formal digital systems could play a pivotal role in driving national economic growth, ensuring food security, and building resilience in conflict-affected regions like the North-East.
