A new study by Moniepoint Inc. shows that traders in Nigeria’s North-East are increasingly adopting digital payments to reduce theft and streamline their accounting.

According to the statement, digital tools are becoming more integrated into the region’s livestock trade ecosystem.

Agriculture—central to Nigeria’s non-oil economy—accounted for 24.64% of the country’s real GDP in Q4 2024.

“The study found that over 45 per cent of traders in Borno now accept digital payments, with transfers accounting for 28.6 per cent and POS usage at 17 per cent.

“This adoption has grown significantly since Nigeria’s cash crunch in 2023 highlighted the risks associated with cash-based trade. In response, tools like Moniepoint’s POS and credit alerts, which enabled mobile transfers, have become vital to how these farmers and traders operate,” read part of the statement.

Smallholder farmers drive food production in the region, with over 80% cultivating less than two hectares and supplying a large share of Nigeria’s food. In Borno State alone, farmers produce over two million metric tonnes of staple crops each year, with the informal market serving as the main channel for distributing these goods.

According to the report, 51.2% of traders in Borno State source their products from Maiduguri—a key hub for livestock, grains, vegetables, and agrochemicals bound for cities across Nigeria. However, despite the scale of trade, most transactions still occur outside the formal banking system.

“Our research shows that credit is mostly informal, payments are often made in person, and records are kept by memory or handwritten ledgers,” the report noted.

The study also highlights that over 51% of traders source and distribute their goods from Maiduguri to cities across Nigeria and neighbouring countries, reaffirming the city’s vital role in bolstering national food security.

It further reveals that nearly 37% of food chain actors surveyed have operated their businesses for more than a decade—reflecting deep local knowledge and the enduring nature of food enterprises built on generational expertise and resilience.

Commenting on the study, the Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda, said, “Moniepoint believes financial inclusion is not just about access. It’s about dignity, about enabling people to transact on their terms. What’s happening in the North-East today is significant. Farmers and traders who were once excluded from formal systems are now part of a national digital network, able to access capital, manage risk, and grow. This shift isn’t just tech-enabled, but it’s structurally impactful work. It’s about creating an economy where everyone can participate, no matter their location or background.

“The story of Nigeria’s food chain is a story about people. Our role is to empower them with tools that are built for their reality. By providing secure, reliable, and instant payment solutions, we are helping to de-risk their operations and connect them to the broader national economy. The data shows that when you build on the organic, trust-based networks that already exist, you don’t just support socio-economic development, you accelerate it. These are not just individual livelihoods; they are the hidden engines of Nigeria’s economy.”