Moniepoint: Nigeria’s food service industry reaches $11.09 billion on digital payment growth

Nigeria’s food service industry has grown into an estimated $11.09 billion market in 2025, reflecting the resilience of one of the country’s most enduring sectors despite persistent economic challenges.

This is according to a new case study by Moniepoint, which says the industry’s growth has been driven not only by sustained consumer demand for food but also by the rapid expansion of digital payment infrastructure, enabling businesses to scale operations and improve customer experience.

The report highlights digital payments as one of the strongest catalysts for the sector’s transformation, helping food businesses process transactions more efficiently, expand sales channels, and adapt to changing consumer preferences.

What the report is saying

According to the study, food vendors are typically among the first businesses to establish operations in newly developing neighbourhoods across cities such as Lagos, Abuja and Enugu, often alongside pharmacies and Point of Sale (POS) operators.

Moniepoint noted that many entrepreneurs operate multiple businesses simultaneously, illustrating the flexibility that defines Nigeria’s informal economy.

The company said this adaptability has enabled food businesses to remain resilient through economic downturns while embracing technologies that improve operational efficiency and customer satisfaction.

Over the last four decades, Nigeria’s food service industry has evolved from predominantly cash-based roadside vendors into a digitally enabled ecosystem that includes quick service restaurant (QSR) chains, online food delivery platforms and cloud kitchens operating without physical dining spaces.

Moniepoint attributes much of this transformation to the widespread adoption of real time digital payments, which have significantly reduced transaction friction for both merchants and consumers.

The report also points to the rapid growth of online food delivery, estimating Nigeria’s online food delivery market at $1.04 billion in 2024, creating new revenue streams for restaurants beyond traditional dine in customers.

More insights

Moniepoint said its extensive payment network provides valuable insights into evolving consumer behaviour across Nigeria’s food industry.

According to the company, food and beverage businesses represent the second largest merchant category on the Moniepoint platform after retail.

• Its payment terminals are used by a broad range of operators, including major quick service restaurant chains, neighbourhood “bukkas”, fine dining restaurants, bakeries and late night food vendors.
• The company said transaction data reflects the diversity of Nigeria’s food economy, capturing purchases ranging from birthday cakes during the day to noodles sold outside entertainment venues late at night.
• The report further noted that payment infrastructure has become an increasingly important competitive advantage. As consumers demand faster and more reliable payment options, businesses that can process seamless digital transactions are better positioned to attract and retain customers.

Moniepoint added that the industry’s evolution has been shaped by major economic events, including oil boom periods, recessions and Nigeria’s gradual shift toward a cashless economy.

Although the implementation of the cashless policy initially exposed weaknesses in payment infrastructure, continued improvements in digital financial services have helped food businesses sustain operations during periods of cash shortages.

The case study forms part of Moniepoint’s broader examination of Nigeria’s food service industry, tracing its journey from small local food vendors to a multi-billion dollar ecosystem supported by more than 800 quick service restaurant outlets nationwide and increasingly powered by digital commerce.

What you should know

The industry’s resilience comes despite persistent inflationary pressures that continue to squeeze both businesses and consumers. Nigeria’s food inflation rate remained above the country’s headline inflation rate for the second consecutive month in May 2026, rising to 16.96%, compared with the all-item inflation rate of 15.93%.

Analysis by Nairametrics Research, using data compiled by Nairalytics from National Bureau of Statistics (NBS) Consumer Price Index (CPI) reports, showed that food inflation first surpassed headline inflation in April 2026 after remaining below the broader inflation rate for eight consecutive months.

The inflationary environment has increased operating costs across the food value chain, forcing restaurants, food vendors and manufacturers to adjust prices, review portion sizes and seek operational efficiencies.