Eighty percent – 80% of pharmacies in the country pay for goods digitally, with 56.8% using point-of-sale (POS) systems and bank transfers, and 32.9% relying on direct bank transfers.
The report, published by payment company Moniepoint, titled Inside Nigeria’s Community Pharmacies, highlights the increasing shift toward digital payments in Nigeria’s pharmacy sector, especially in response to the 2023 cash crunch that disrupted cash-based transactions.
The adoption of digital payments has transformed the way pharmacies operate, allowing them to enhance customer service, build stronger supplier relationships, and improve financial management.
The report also details how 56.8% of pharmacies pay for goods using point-of-sale (PoS) systems and bank transfers, while 32.9% rely on direct bank transfers.
“Only 5.2% of pharmacies still use cash, while 3.2% are exploring other payment methods, and 1.9% utilize credit facilities. “This shift to digital payments is helping pharmacies maintain better relationships with suppliers and avoid the disruptions that can arise from failed or delayed cash transactions.
Digital payments in customer transactions
Beyond supplier relationships, the report highlights that “45.39% of Nigerian pharmacy customers prefer to pay using digital methods, such as PoS machines or bank transfers, while only 7.69% of customers rely solely on cash.”
The remaining 46.92% use a mix of both cash and digital payment methods. The preference for digital payments has grown significantly, driven in part by the 2023 cash shortage, which made cash transactions less reliable.
For community pharmacies, this shift represents an opportunity to enhance customer satisfaction by offering seamless payment options. Medplus, one of Nigeria’s largest pharmacy chains, serves over 2,000 customers daily, many of whom now prefer digital payments.
According to Ife Bakare, Head of Strategy and Innovation at Medplus, the improvement in digital payment services has been noticeable, but there is still room for further enhancement.
“Reliable digital payments can strengthen relationships with both new and returning customers,” Bakare said.
Supplier relationships and digital payments
The report emphasizes that the adoption of digital payments is not just improving customer transactions, but also streamlining the supply chain for pharmacies.
Digital payments have reduced the risk of transaction failures, which can lead to supply disruptions.
Chi, the founder of Dexta Pharmacy, recounted a close call early in her business when a cash transaction failure almost cost her a trusted supplier.
“We typically deal with large sums of money, so carrying cash isn’t practical. After a failed cash payment, my supplier threatened not to work with me again. Since then, I’ve switched to paying with my Moniepoint account, and it has helped maintain trust,” she said.
Limited access to funding
Despite the benefits of digital payments, pharmacies in Nigeria still face challenges in securing funding.
According to the report, “Only 17.2% of pharmacies have obtained loans from banks or financial institutions, and 8.2 per cent get loans from cooperatives. Other sources of funding include gifts from family and friends (7.2 per cent), grants from government or other bodies (3.1 per cent), crowdfunding (2.4 per cent), and private equity and venture capital taking 2.1 per cent.”
Pharmacies that adopt digital payments, however, are able to build stronger financial records, which could improve their chances of securing loans in the future.
As Nigeria’s healthcare sector continues to modernize, digital payments will play an increasingly critical role in helping pharmacies strengthen operations, manage supply chains, and improve customer service.
What You Should Know
⦁ Nigerian pharmacies are most active on Mondays and Saturdays in 75% of Nigerian states
⦁ According to the Pharmaceutical Society of Nigeria, there are 25,000 registered pharmacies and patent medicine stores in Nigeria. Many of them are located in communities without functioning healthcare centres, helping to fill an important gap.
⦁ Beyond remote areas, community pharmacies are also important in urban areas. You can find them in standalone stores or malls, where they help provide access to drugs prescribed by doctors.
⦁ 10.17% of Nigeria’s community pharmacies & medicine vendors are in Lagos
