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REACH research report shows Nigerian spending patterns

Following the release of its annual report, comparing spending habits between Nigeria and Kenya, Nairametrics interviewed JR Kanu, the founder of Reach, a fintech company.



Nigeria vs Kenya, Nigerians spending pattern

Following the release of its annual report, comparing spending habits between Nigeria and Kenya, Nairametrics interviewed JR Kanu, the founder of REACH, a fintech company.

Highlights of the report

Spending in Nigeria

In terms of payment of bills and utilities, the top 3 vendors where GTB 737 Airtime, FirstBank 894 Airtime and MTN. The typical transaction size was N500.

In terms of bank charges such as Account charges, transfer fees, card issuance, SMS alerts, ATM charges, stamp duty, and all other bank fees, Guaranty Trust Bank led the pack, followed by Zenith Bank, and Diamond Bank in third place. The typical transaction size was N50.

Three banks led in terms of cash withdrawals at ATMs and bank tellers. FirstBank, Diamond Bank, and Zenith Bank. The typical transaction size was N5,000.


Guaranty Trust Bank led Peer-to-peer money transfers, as well as bank transfers used to pay for goods and services. Diamond Bank took the second spot, while FirstBank took the third spot. The typical transaction size was N7,500.

In the Transport category which covers taxis, car fuel, and commuting, the top 3 vendors were Uber, Taxify and Forte Oil. The typical transaction size was N1,600.

Under the restaurant category which encompasses Fast food, fine dining, bars, bakeries, dessert parlours, and all eating in general outside the home, the top three vendors were the Chicken Republic, Domino’s & Coldstone, and The Place. The typical transaction size was N1,850.

For groceries, the top 3 vendors where Shoprite, Spar, and Ebeano. The typical transaction size was N2,810.

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Spending in Kenya 

The Kenyan section of the report shows Safaricom and Mpesa, play a key role in financial transactions in the country.

In the Bills and Utilities category which covers Mobile airtime, ISP, electricity, water, and other municipal and bill payments, Safaricom was the top vendor. KPLC comes second, and Telkom comes third. Typical transaction size was 50 Kenyan Shillings.

Sports Betting surprisingly was a key category in terms of spending. SportPesa was first in this category.  Betin Kenya took the second spot and betPawa the third spot. Typical transaction size was 100 Kenyan Shillings.

The grocery segment comprises Supermarkets, convenience stores, sundry shops where consumer goods and household supplies are sold. Naivas came first, Tuskys second and Carrefour third place. Typical transaction size was 650 Kenyan shillings.

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The transport category which covers taxis, car fuel, and commuting, Total took first place, Shell the second position and Libya the third place. Typical transaction size was 1000 Kenyan Shillings.

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In the Transfer segment which comprises Peer-to-peer money transfers, as well as bank transfers used to pay for goods and services, M-Pesa was the top vendor, followed by PesaPal and KCB. Typical transaction size was 626 Kenyan shillings.

The two countries compared 

In dollar terms, Nigerians spent nearly thrice Kenyans in terms of bills and utilities. While Kenyans spent $0.49, Nigerians spent $1.37.  

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Surprisingly, Kenyans spent more on transport than Nigerians, in dollar terms. Typical spending on transport was $9.81 versus $4.41 by Nigerians. Nigerians also spent more on taxi services than Kenyans, a likely indication the East African country has more car usage.  


Excerpts from the interview:

Why the comparison between Nigeria and Kenya?

We like the idea of East vs West. There is a fun friendship between Nigeria and Kenya. The two markets are also key in their own rights.

Why operations in Qatar?

We have plans to go beyond Africa, it was an easy test for us to run. We wanted to enter somewhere we could learn from. Kanu also hinted that the firm will be expanding into other countries in the coming quarter. Reach operates in three countries in Africa: Nigeria, Ghana and Kenya.


How does the app gather data?

Data is gathered from SMS sitting on the phone registered, as well as transactions manually entered.

What was the methodology of the report?

Reach leveraged on over 8 million unique transactions in order to compile the report. A sample size of 50,000 people was used.

How does reach make money?

Kanu stated that the firm does not sell data in any way, but provides consulting services.

We never pitch data to companies. We do consulting. When companies need to know how to price their goods and services they come to us. When they want to enter a new market they come to us. Think of us as Facebook and Google, but it on the back of big data analytics. After analyzing millions of transactions, here are the patterns we see.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Tech News

Facebook Oversight Board to review decision to suspend Trump’s account

The decision to suspend Donald Trump’s Facebook and Instagram accounts will be examined by an oversight board.



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Facebook’s Oversight Board has received a proposal to revisit the decision to indefinitely suspend former US President, Donald Trump’s access to Facebook and Instagram.

On January 7, Facebook suspended Trump’s account indefinitely, a decision reached when he incited a violent mob that stormed the U.S. Capitol, leaving the country shaken.

Nick Clegg, Facebook VP of Global Affairs and Communications said that the circumstances around Trump’s suspension was an unprecedented set of events that called for unprecedented action and also explained why the Oversight Board would review the case.

Our decision to suspend then-President Trump’s access was taken in extraordinary circumstances: A U.S. president actively fomenting a violent insurrection designed to thwart the peaceful transition of power; five people killed; legislators fleeing the seat of democracy,” Clegg said. “This has never happened before — and we hope it will never happen again.”

The oversight board was established last year to make the final call on some of the most difficult content decisions Facebook makes. It is an independent body and its decisions are binding — they can’t be overruled by CEO Mark Zuckerberg or anyone else at Facebook. The board itself is made up of experts and civic leaders from around the world with a wide range of backgrounds and perspectives.


According to the Oversight Board, a five-member panel will evaluate the case soon with a decision planned within 90 days. Members will decide whether the content involved in this case violated Facebook’s Community Standards and values. They will also consider whether Facebook’s removal of the content respected international human rights standards, including freedom of expression.

Trump’s case is a big moment for how impactful the board’s decisions will really wind up being. If the board overturns Facebook’s decision, that decision would likely kick up a new firestorm of interest around Trump’s Facebook account, even as the former president recedes from the public eye.

What you should know

  • Following the violent attack of the US Capitol building by Trump supporters, Facebook announced the suspension of Trump’s account indefinitely, on allegations of inciting his supporters.
  • YouTube also suspended Trump’s channel and removed new content uploaded by Trump’s campaign, citing potential threats of violence.
  • Twitter announced it has permanently suspended Trump, citing the risk of further incitement of violence.
  • Jack Dorsey, the CEO and founder of Twitter, in his statement, said that the decision to ban Trump from the social network was the right decision, but one that sets a dangerous precedent.

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Covid-19: Buhari approves N6.45 billion to set up 38 oxygen production plants

President Buhari has approved the sum of N6.45 billion for the set-up of 38 oxygen production plants across the country.



Buhari sacks DG National Directorate of Employment, Nasiru Argungu

President Muhammadu Buhari has announced his approval of N6.45 billion for the set-up of 38 oxygen production plants across the country, in a bid to contain the second wave of Covid-19.

The President disclosed this in a statement on Thursday evening after the first National Economic Council meeting of the year presided over by Vice President Yemi Osinbajo, SAN, with State Governors, Federal Capital Territory Minister, Central Bank Governor, and other senior government officials in attendance.

READ: Covid-19: FG directs universities to suspend academic activities till further notice

“As part of efforts to contain the second wave of Covid-19, we’re setting up new oxygen production plants in 38 locations across Nigeria—to enhance the management of patients in need of oxygen.

“I have equally approved funding for the rehabilitation of oxygen plants in 5 hospitals,” Buhari said.


The Minister of Finance, Budget and National Planning, Zainab Ahmed said the President said the fund’s release was necessitated by the rising cases of Covid-19 in the country with patients needing oxygen.

READ: Toyota suspends operations in China over Coronavirus outbreak 

What you should know 

  • Recall Nairametrics reported that the Lagos State Governor, Babajide Sanwo-Olu, warned that the rising second wave of the pandemic in Lagos had seen the demand for oxygen rise 5 times from 70 six-liter cylinders per day to 350 six-liter cylinders at Yaba Mainland Hospital alone.
  • He added that the state government had the decentralized provision of oxygen and other services needed for Covid-19 patients, citing the provision of oxygen kiosks.

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Economy & Politics

FG says Excess Crude Account balance now stands at $72.4 million

The Federal Ministry of Finance has told the NEC that the Excess Crude Account (ECA) now stands at $72.4 million as at January 20, 2021.



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The Federal Government has announced that Nigeria’s Excess Crude Account (ECA) balance as at 20th January 2021 is $72,411,197.80.

This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed at the first National Economic Council meeting of the year presided over by Vice President Yemi Osinbajo, SAN, with State Governors, Federal Capital Territory Minister, Central Bank Governor and other senior government officials in attendance.

READ: Nigeria’s growing current account deficit fans devaluation flames 

The FG said, “the ECA balance as at 20th January, 2021, $72,411,197.80; Stabilization Account, balance as at 19th January, 2021, N28, 800, 711,295.37; Natural Resources Development Fund Account, balance as at 19th January 2021, N95, 830,729,470.82.”

READ: Nigerians spend $9.01 billion on foreign travels in 2019 


What you should know

  • In August 2015, during the early days of the Buhari administration, the ECA stood at $2.2 billion. It was $3.6 billion in February 2014, one of the highest balances on record.
  • According to the Central Bank of Nigeria’s annual report for 2018, Nigeria’s excess crude account fell from $2.45 billion in 2017 to $480 million as of December 2018.
  • In 2019, Nairametrics reported Nigeria’s Excess Crude Account had dropped to $480 million. This is as controversy continued to trail the $1 billion military spendings which was withdrawn from Nigeria’s Excess Crude Account.
  • Nairametrics reported in July 2020 that the  ECA had fallen by about 98% within the last 5 years to $72 million.
  • Nigeria has two Sovereign Wealth Funds: the Excess Crude Account and the Nigeria Sovereign Investment Authority (NSIA). Note that these two are funded by the savings earned when oil prices are at their peak.

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