Market News

By Oluwakemi Abimbola

A new case study by Moniepoint has revealed that electronic transfers were a more common means of payment than cash, even as food outsells beer and other alcoholic drinks in some communities.

According to the new study titled ‘The Business of Community Nightlife in Nigeria’, the informal nightlife sector pulls in substantial economic activities.

Moniepoint noted that while high-end ‘Detty December’ venues grab headlines with daily revenues of N360m and table prices reaching N1.2m, its research shows the ‘community nightlife’ where roadside bars, suya spots, and neighbourhood joints form the bedrock of social life for millions of Nigerians.

The Moniepoint study drew its data from transactions across more than 27,000 clubs, bars, and lounges sitting on Moniepoint’s payment rails alongside fieldwork with nightlife operators and workers across the country.

This was combined with field interviews and observational research across multiple Nigerian cities.

Part of the report read, “In stark contrast to wider informal economy trends, cash plays a diminishing role in nightlife payments.” The report shows that bank transfers dominate, followed closely by card payments, with cash actively discouraged due to security concerns. Moniepoint’s data shows that transfers outpace card payments by nearly two million transactions during peak nighttime hours across its network.

“One of the study’s most operationally significant findings concerns the timing of spending. Nightlife in Nigeria runs long, but economically, the night is decided early. Transaction volumes begin climbing sharply from 8pm, peak before midnight, and then decline steadily even as venues remain full. By the time the night is at its longest, purchasing activity has already wound down. However, for bar operators, this has clear practical implications – the most critical hours for staffing, stocking, vendor payment and cash flow management are the earliest hours of the day, between midnight and 6am.”

It was also revealed that local bars typically expand their workforce by 30-50 per cent on peak nights, highlighting the sector’s contribution to employment, with conservative estimates suggesting at least 54,000 people are engaged in nightlife labour every night across Nigeria.

“Nigeria’s local bars and nighttime operators are not peripheral to the economy; they are a critical part of its architecture. We see a substantial and sustained economic sector that employs hundreds of thousands of Nigerians every night and deserves the same attention we give to agriculture, healthcare, and retail.

“Our goal is to make sure every one of those businesses has the tools to grow. From giving credit to finance renovations and sound systems to providing same-day settlement that allows vendors to restock and with tools like Moniebook that power inventory management and reconciliation, Moniepoint is ensuring that this vital artery of the nation’s economy remains viable and empowering,” said Co-Founder and Group Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda.

Other key interesting findings include that the most common transaction narrations from the data sourced were “food”, “pay”, “sent”, “POS”, and “cash”, reflecting the full breadth of nightlife spending: street food, club entry, lounge tabs, transport, and afterparties. Digital payments have gained huge traction in Nigeria’s social space.

“While alcohol remains a key revenue driver, the data shows that food is the quiet stabiliser of Nigeria’s night economy, particularly in local and informal settings. In several neighbourhood venues, bottled water and meals outsell beer and spirits, especially early in the evening.

“Lagos leads in sheer concentration of nightlife establishments, with 4,856 bars, clubs, and lounges on the Moniepoint network. FCT follows with 2,515, then Rivers (2,362), Delta (1,930), and Edo (1,574). Katsina leads the country in nighttime food truck payment value, with vendors pulling in over N130m in the last 12 months. Kwara State leads in transaction count. Nigeria’s nightlife economy is distributed, not overly elitist,” the statement added.

On the lending side, the report noted that a significant share of loan requests from bar and lounge operators is directed toward renovations, furniture, lighting, and sound systems, showing that investments are intended to attract and retain customers in a competitive sector where ambience plays a decisive role.

Moniepoint said that it would continue to fuel the night-time sector through innovative features like “POS Transfers”, and by assigning a dedicated bank account to each terminal, the system provides an instant “audio-visual” confirmation, a signature “ping”, that allows service to continue without the friction of waiting for SMS alerts or verifying screenshots.

Furthermore, in addressing the unique safety needs of consumers, Moniepoint cards are designed without visible card numbers, expiry dates, or CVVs, ensuring that a customer’s financial information remains secure.

As a large distributor of financial services, Moniepoint processes billions in transactions monthly and continues to expand its reach, supporting millions of businesses with payments, banking, credit, and business management solutions.