Nigeria’s food service industry has grown into an estimated $11.09 billion market in 2025, reflecting the resilience of one of the country’s most enduring sectors despite persistent economic challenges.

This is according to a new case study by Moniepoint, which says the industry’s growth has been driven not only by sustained consumer demand for food but also by the rapid expansion of digital payment infrastructure, enabling businesses to scale operations and improve customer experience.

The report highlights digital payments as one of the strongest catalysts for the sector’s transformation, helping food businesses process transactions more efficiently, expand sales channels, and adapt to changing consumer preferences.

What the report is saying

According to the study, food vendors are typically among the first businesses to establish operations in newly developing neighbourhoods across cities such as Lagos, Abuja and Enugu, often alongside pharmacies and Point of Sale (POS) operators.

Moniepoint noted that many entrepreneurs operate multiple businesses simultaneously, illustrating the flexibility that defines Nigeria’s informal economy.

The company said this adaptability has enabled food businesses to remain resilient through economic downturns while embracing technologies that improve operational efficiency and customer satisfaction.

Over the last four decades, Nigeria’s food service industry has evolved from predominantly cash-based roadside vendors into a digitally enabled ecosystem that includes quick service restaurant (QSR) chains, online food delivery platforms and cloud kitchens operating without physical dining spaces.

Moniepoint attributes much of this transformation to the widespread adoption of real time digital payments, which have significantly reduced transaction friction for both merchants and consumers.

The report also points to the rapid growth of online food delivery, estimating Nigeria’s online food delivery market at $1.04 billion in 2024, creating new revenue streams for restaurants beyond traditional dine in customers.