A new study by Moniepoint Inc. has revealed that traders in the North-East region of Nigeria are embracing digital payments to curb theft and simplify their accounting process.

According to a statement from the financial institution, digital tools are gradually becoming embedded in the systems surrounding livestock trade in the region.

The agricultural sector, which is the bedrock of Nigeria’s non-oil economy, contributed 24.64 per cent to the nation’s real GDP in the fourth quarter of 2024. Nigeria’s North-East, which is the base of this study, has been grappling with the economic fallout of a decade-long conflict.

“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 dominate food production in the region, with over 80 per cent cultivating less than two hectares and producing a significant portion of Nigeria’s food. In Borno State alone, farmers produce more than two million metric tonnes of staple crops annually, and the informal market remains the primary engine driving the movement of these goods.

The report found that 51.2 per cent of traders in Borno State source their goods from Maiduguri, a hub that serves as a conduit for livestock, grains, vegetables, and agrochemicals to cities across Nigeria. Yet despite this scale, most transactions still happen outside formal banking structures.

“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.

Other highlights of the study are that over 51 per cent of the traders source and dispatch their goods from Maiduguri to cities across Nigeria and neighbouring countries, reinforcing its critical position as a site that contributes significantly to Nigeria’s food security. Nearly 37 per cent of food chain actors surveyed have been in business for over a decade, underscoring the depth of local knowledge and the continuity of food-related enterprise in the region, which has been forged on the back of generational expertise and resilience.

Traders employ a diverse array of transportation methods, depending on their needs: 30.4 per cent use shared trucks for bulk transport, while 23.2 per cent rely on smaller, more nimble commercial tricycles, and others use motorcycles. This flexibility allows traders to tailor their logistics to the security of a given route, the size of the consignment, and the need for speed or discretion.

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.”

This study by Moniepoint comes on the heels of others like the previous case studies on family-owned businesses, South-East’s Onitsha Market, community pharmacies, women-owned businesses, and the definitive Informal Economy Report, which collectively demonstrated how digital payment solutions are transforming Nigeria’s commercial landscape across diverse sectors and market structures.