Digital Payments Now Account for 43% of Fuel Transactions in Nigeria, Moniepoint Report Shows
- Digital payment channels now account for 43% of fuel transactions in Nigeria, according to Moniepoint
- The report found that 90.9% of petrol stations rely on POS terminals for daily operations
- Many operators face liquidity challenges due to the T+1 settlement cycle for card payments
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Digital payment channels now account for 43% of fuel transactions in Nigeria, highlighting a growing shift away from cash in the downstream oil and gas sector, according to a new case study by financial services platform Moniepoint.
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The report, titled “Fuelling the Nation: How Moniepoint Powers Nigeria’s Oil and Gas Industry,” examined payment systems, access to credit and inventory management practices among petrol station operators across the country, PUNCH reported.
POS adoption rises across petrol stations
According to the study, 90.9% of petrol stations now rely on point-of-sale (POS) terminals for daily operations, making digital payments a standard part of business in the sector.
Petrol stations remain central to Nigeria’s transport and energy ecosystem, especially in communities with limited access to alternative energy sources. The report noted that over 90% of passenger and freight movement in Nigeria occurs by road, with stations collectively dispensing an estimated 41 to 47 million litres of petrol daily.
Despite their importance, operators continue to face financial and structural constraints.
Liquidity challenges, settlement delays
One of the long-standing issues identified in the study is the “T+1” settlement cycle, where funds from card transactions are made available the next day. In a sector with tight margins and frequent restocking needs, the delay can result in fuel shortages, often described as “dead tanks,” and lost revenue.
Moniepoint said its same-day settlement solution is designed to address this liquidity gap by allowing station owners to access funds immediately, pay suppliers promptly and maintain a steady fuel supply.
The report found that one in three petrol station owners cited access to credit as their biggest recurring challenge.
It added that Moniepoint has disbursed millions of naira in working capital loans to fuel retailers, recording a 99.81% repayment rate. According to the study, nearly three in five petrol stations have transitioned from cash-based and manually operated models to digitally enabled businesses with access to payment infrastructure and growth capital.
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Push for data-driven policy engagement
Commenting on the findings, Babatunde Olofin, managing director of Moniepoint Microfinance Bank, said the report aims to support policy discussions and provide data-backed insights into Nigeria’s downstream sector.
“With data from business transactions and our management tools, petrol stations can plan inventory more effectively, know when to restock and ensure operations run smoothly to serve more customers,” Olofin said.
He added that expanding access to financial tools for fuel retailers would strengthen distribution networks and contribute to a more efficient and inclusive energy system.
The downstream oil and gas case study follows earlier reports by Moniepoint covering sectors such as family-owned businesses, open markets, community pharmacies, women-led enterprises and agriculture in the North-East.
Moniepoint processes billions of naira in transactions monthly and provides payment, banking, credit and business management solutions to millions of businesses nationwide, positioning it as a major player in Nigeria’s financial inclusion drive.
CBN grants national licence to Moniepoint, others
Legit.ng earlier reported that the CBN granted national operating licences to several fintech companies and microfinance banks, including Opay and Moniepoint.
The approvals would enable the firms to expand agent networks, open outlets nationwide and scale digital banking services.
While the move was expected to improve access and service delivery, the CBN stressed that all beneficiaries remain under strict regulatory oversight.
Source: Legit.ng
