Cash or Transfer: How Nigerians Make Payment in Nightlife Transactions
- Moniepoint’s new report shows that electronic transfers have overtaken cash in Nigeria’s nightlife sector
- The study analysed transactions from over 27,000 bars, clubs and lounges across the country
- Food and bottled water outsell alcohol in several neighbourhood venues, especially early in the evening
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Moniepoint has released a new study showing that electronic transfers have overtaken cash as the dominant payment method in Nigeria’s nightlife economy, with food purchases in some communities surpassing spending on beer and other alcoholic drinks.
Source: Getty Images
The findings are contained in a report titled “The Business of Community Nightlife in Nigeria,” published by Moniepoint. According to the company, the study highlights the scale and structure of economic activity within the country’s informal nightlife sector, PUNCH reported.
The report noted that while premium “Detty December” venues often attract attention for recording daily revenues of up to N360 million and table bookings priced as high as N1.2 million, everyday neighbourhood nightlife tells a broader story. It said roadside bars, suya spots and local lounges form the foundation of social and commercial life for millions of Nigerians.
How the data was gathered
Moniepoint explained that the study analysed transactions across more than 27,000 clubs, bars and lounges operating on its payment network. The company also conducted field interviews and observational research with nightlife operators and workers in several Nigerian cities.
According to the report, digital payments are increasingly dominant in nightlife transactions. Contrary to wider trends in Nigeria’s informal economy, cash is reportedly playing a declining role in the sector.
“In stark contrast to wider informal economy trends, cash plays a diminishing role in nightlife payments,” the report stated.
Bank transfers were said to lead transaction volumes, followed by card payments, with many operators discouraging cash payments due to security concerns. Moniepoint’s data shows that transfers exceed card payments by nearly two million transactions during peak night hours across its network.
When Nigerians spend most at night
The study also examined spending patterns across the night. It found that transaction volumes begin to rise sharply from 8pm, reach a peak before midnight, and gradually decline afterward.
The report explained that although nightlife in Nigeria often continues into the early hours, most purchases happen earlier in the evening. It added that for operators, the critical operational window for staffing, restocking and managing cash flow falls between midnight and 6am.
Employment and economic impact
Moniepoint’s report suggests that local bars typically increase their workforce by 30 to 50 per cent on peak nights. It estimates that at least 54,000 people are engaged in nightlife-related work across Nigeria every night.
Commenting on the findings, Moniepoint’s Co-Founder and Group Chief Executive Officer, Tosin Eniolorunda, said the sector plays a vital role in the country’s economy.
“Nigeria’s local bars and nighttime operators are not peripheral to the economy; they are a critical part of its architecture,” he said.
He added that the company aims to provide tools such as credit facilities, same-day settlements and inventory management solutions to support growth in the sector.
Food, not just alcohol
While alcohol remains a key revenue source, the data indicates that food plays a stabilising role in the night economy, particularly in informal settings. In several neighbourhood venues, bottled water and meals reportedly outsell beer and spirits, especially earlier in the evening.
The most common transaction descriptions observed in the data included “food”, “pay”, “sent”, “POS” and “cash”, reflecting a mix of spending on meals, entry fees, transport and other nightlife-related expenses.
State-by-state breakdown
According to the report, Lagos state has the highest concentration of nightlife establishments on Moniepoint’s network, with 4,856 bars, clubs and lounges. The Federal Capital Territory follows with 2,515 outlets, while Rivers State (2,362), Delta State (1,930) and Edo State (1,574) also rank among the top locations.
Interestingly, Katsina State recorded the highest payment value for nighttime food trucks over the past 12 months, with vendors generating more than N130 million. Kwara State led in transaction count.
Moniepoint said the distribution of nightlife activity across states suggests the sector is widespread and not limited to high-end urban centres.
Source: Getty Images
Investment trends and new features
On the financing side, the report revealed that many loan applications from bar and lounge operators are directed toward renovations, furniture upgrades, lighting and sound systems. These are investments aimed at improving ambience and attracting customers.
The company also said it will continue to support the sector through features such as “POS Transfers,” which assigns a dedicated bank account to each terminal and provides instant audio-visual confirmation of payments.
In addition, Moniepoint noted that its cards are designed without visible card numbers, expiry dates or CVVs as part of measures to improve user security.
As one of Nigeria’s financial service providers, the company said it processes billions of naira in transactions monthly and supports millions of businesses with payment, credit and banking solutions.
Digital payments account for 43% of fuel transactions
Legit.ng earlier reported that according to a report by Moniepoint Microfinance Bank, digital payment channels accounted for 43% of fuel transactions in Nigeria.
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.
The study found that 90.9% of petrol stations relied on POS terminals for daily operations. Many operators faced liquidity challenges due to the T+1 settlement cycle for card payments.
Source: Legit.ng
