Connect with us

Business News

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.

GTBank 728 x 90

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.

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.

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.

GTBank 728 x 90
Fidelity ads

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.  

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.

Coronation ads

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]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.


COVID-19 Update in Nigeria

On the 18th of September 2020, 221 new confirmed cases and 1 death were recorded in Nigeria.



The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 56,956 confirmed cases.

On the 18th of September 2020, 221 new confirmed cases and 1 death were recorded in Nigeria, having carried out a total daily test of 2,609 samples across the country.

To date, 56,956 cases have been confirmed, 48,305 cases have been discharged and 1,094 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 482,321  tests have been carried out as of September 18th, 2020 compared to 479,712 tests a day earlier.

COVID-19 Case Updates- 18th September 2020,

  • Total Number of Cases – 56,956
  • Total Number Discharged – 48,305
  • Total Deaths – 1,094
  • Total Tests Carried out – 482,321

According to the NCDC, the 221 new cases were reported from 18 states- Lagos (59), Abia (46), FCT (22), Gombe (20), Plateau (17), Rivers (11), Bauchi (7), Benue (6), Ekiti (6), Imo (6), Kaduna (4), Kwara (4), Ondo (4), Ogun (3), Osun (3), Bayelsa (1), Edo (1), Kano (1)

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 18,827, followed by Abuja (5,526), Oyo (3,226), Plateau (3,192), Edo (2,611), Kaduna (2,326), Rivers (2,220), Delta (1,799), Ogun (1,758), Kano (1,734), Ondo (1,594), Enugu (1,234), Ebonyi (1,035), Kwara (1,013), Abia (881), Katsina (845), Osun (810), Gombe (799), Borno (741), and Bauchi (689).

GTBank 728 x 90

Imo State has recorded 557 cases, Benue (473), Nasarawa (447), Bayelsa (394),  Jigawa (322), Ekiti (313), Akwa Ibom (288), Niger (250), Anambra (232), Adamawa (230), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (73), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous


GTBank 728 x 90
Fidelity ads

Continue Reading


BREAKING: Fire guts fuel tanker, vehicles at Anthony, Lagos

The tanker conveying PMS lost control while in motion and subsequently fell sideways.



NNPC reacts to Lagos pipeline explosion

There is a fire outbreak, which has gutted a fuel tanker, at Anthony inward Gbagada, Lagos State.

This was disclosed by the Federal Fire Service via its Twitter handle on Friday evening. The incident, which occurred around 10 pm, has razed at least two vehicles.

The agency urged road users to avoid the area and take alternative routes.

Also, the Director-General of the Lagos State Emergency Agency, Dr Olufemi Oke-Osanyintolu, confirmed the incident.

GTBank 728 x 90

He said, “The Agency responded to distress calls and upon arrival at the scene of incident, it was discovered that a tanker with unknown registration number conveying PMS lost control while in motion and subsequently fell sideways.

“This led to an explosion in which two unidentified vehicles were burnt.”

A joint team of responders led by the Federal Fire Service, LASEMA, LASG fire service, LRU fire unit, Nigeria Police and LASTMA are working together to curb the inferno from escalating further.

Details soon …

Continue Reading

Tech News

Facebook to open Lagos office in 2021

When the social media giant comes to Nigeria, it will be its second office on the African continent.



Facebook set to award $3 million in Community Accelerator program, Facebook to invest $100 million in media houses as coronavirus crashes their revenue, Facebook to expand Coronavirus Information Centre to Nigeria, 16 other African countries

Social Media giant, Facebook announced it would open an office in Lagos in 2021, its second office in the continent and the first in Africa to house software engineers.

This was announced by Facebook Program Manager, Chimdindu Aneke on social media. “We are opening a Facebook office in Lagos, Nigeria later in 2021,” he said.

He added that the office would be the first in Africa by Facebook for the purpose of engineering and “building for the future of Africa and beyond”.

Media aide to the Presidency, Tolu Ogunlesi quoted Facebook saying, “As part of its continued commitment and ongoing investment in Africa, Facebook today announced it will be opening an office in Lagos, Nigeria – its second office on the African continent.”

GTBank 728 x 90

In 2019, Facebook’s biggest market in Africa was Nigeria with 33 million monthly active users.

Continue Reading
ikeja electric
FCMB ads
Fidelity ads
first bank
deals book
financial calculator
deals book