By Richard Benjamin
Lagos, Nigeria’s food service industry was valued at $11.09 billion in 2025, with the rapid adoption of digital payment systems driving growth across the sector, according to a new study by fintech company Moniepoint.
The report projects that the industry will expand to $19.31 billion by 2030, growing at a compound annual growth rate of 11.73 per cent, fuelled by real-time digital payments, cloud kitchens and online food delivery platforms.
According to the study, the industry has evolved from cash-based operations characterised by payment delays, theft and limited access to credit into a technology driven ecosystem that supports faster transactions and business expansion.
The report traced the sector’s development from pioneers such as Kingsway Rendezvous in 1973 and Mr Bigg’s in 1986 to today’s growing network of quick-service restaurants and digital food businesses.
It also revealed that food and beverage businesses now account for the second largest merchant category on Moniepoint’s platform after the retail sector, based on transaction volume.
The study identified delayed payment verification, fragmented payment systems and limited access to finance as major challenges previously facing operators.
It noted that payment verification during peak business hours could take between two and five minutes, while many businesses struggled to secure loans because traditional lenders required property collateral.
Citing data from the International Finance Corporation (IFC), the report said Nigeria’s micro, small and medium-sized enterprises (MSMEs) faced a financing gap of $32.2 billion in 2022, adding that women own 86.8 per cent of food service businesses.
According to the report, instant settlement, automated payment confirmation and transaction based lending have improved cash flow, enabled faster restocking and expanded access to credit without the need for conventional collateral.
It added that these innovations, combined with Nigeria’s cashless policy, contributed to a 2,823 per cent increase in quick service restaurant terminal usage on Moniepoint’s payment platform.
The report further stated that integrated digital tools now allow restaurant operators to monitor inventory, identify operational leakages and manage orders from delivery platforms, social media channels and physical outlets through a single system.
It found that transaction volumes typically peak between 1 p.m. and 2 p.m., with another surge around 7 p.m., while online food deliveries remain active beyond 10 p.m.
The study also showed that card payment activity records its highest monthly growth between November and December, while April remains the slowest month, with transaction volumes 46.3 per cent lower than those recorded in December.
Commenting on the findings, Moniepoint Group Chief Executive Officer, Tosin Eniolorunda, said the future of the food service industry would depend on integrating payment systems with inventory management, procurement, credit and other day-to-day business operations.
He said the company’s digital solutions were designed to provide food entrepreneurs with an integrated platform that promotes financial inclusion, operational efficiency and sustainable business growth.
