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By Maduka Nweke
Nigeria’s food service industry is projected to expand from $11.09 billion in 2025 to $19.31 billion by 2030, growing at an annual rate of 11.73 per cent, as digital payment infrastructure continues to transform business operations across the sector.
This is according to a new industry case study released by Moniepoint, which examined four decades of Nigeria’s food service evolution and highlighted how technology has addressed longstanding challenges such as settlement delays, payment confirmation bottlenecks, theft and limited access to credit.
The report noted that Nigeria’s food industry has undergone a major structural transformation, driven by the emergence of food delivery platforms, cloud kitchens and technology-enabled quick-service restaurants.
Tracing the industry’s evolution from the establishment of Kingsway Rendezvous in 1973 and the launch of Mr Bigg’s in 1986 to the rise of modern quick-service restaurant chains, the study said digital infrastructure has become central to the sector’s rapid growth.
According to the report, food businesses previously relied almost entirely on cash transactions, exposing operators to theft, cash leakages and accounting errors, particularly those managing multiple outlets.
Although bank transfers became more common in the 2010s, operators faced new challenges as they struggled with delays in confirming payments before releasing customer orders.
The study observed that during peak business periods, manual payment verification could add between two and five minutes to every transaction, with system failures becoming more frequent during festive periods such as Christmas, New Year and Eid when transaction volumes surged.
It further revealed that disconnected payment and inventory systems made it difficult for operators to detect stock losses, under-reporting of sales and other operational leakages.
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The report also identified limited access to finance as another major obstacle confronting the sector, noting that Nigeria’s collateral-based lending system has historically excluded many small and medium-sized food businesses from accessing working capital.
Citing figures from the International Finance Corporation (IFC), the report said Nigeria’s unmet financing demand for micro, small and medium enterprises stood at $32.2 billion in 2022, with women disproportionately affected despite owning 86.8 per cent of businesses in the accommodation and food services sector.
According to the study, the adoption of instant settlement systems, automated payment confirmation and transaction-based lending has significantly improved cash flow for operators, enabling businesses to restock more quickly, reduce delays and expand operations.
It also highlighted the growing integration of digital payment platforms with inventory management, procurement and business analytics, giving restaurant operators real-time visibility into sales, stock levels and financial performance.
Industry analysts said such innovations are helping food businesses curb losses arising from inventory theft, portioning errors and fragmented order management while improving operational efficiency.
The report also offered insights into consumer spending patterns, revealing that transaction volumes across the industry peak between 1 p.m. and 2 p.m., with a second surge around 7 p.m., when payment activity rises to between 10 and 15 times the level recorded at 7 a.m.
For online food delivery businesses, however, transaction volumes remain strong well beyond 10 p.m., reflecting changing consumer lifestyles and growing demand for convenience.
Seasonal spending trends showed that card payment activity records its biggest month-on-month increase between November and December, while April remains the slowest month for payment activity, recording volumes 46.3 per cent lower than those of December.
The study concluded that continued investment in digital payment infrastructure, business management tools and accessible financing will play a critical role in supporting the next phase of growth in Nigeria’s food service industry as operators respond to rising consumer demand and increasing digital adoption.
