Nigeria Cards and Payments: Opportunities and Risks to 2028

The ‘Nigeria Cards and Payments: Opportunities and Risks to 2028' report provides detailed analysis of market trends in the Nigerian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, direct debits, and cheques during the review-period (2020-24e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2024e-28f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together the analyst’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

This report provides top-level market analysis, information and insights into the Nigerian cards and payments industry, including:

• Current and forecast values for each market in the Nigerian cards and payments industry, including debit and credit cards.
• Detailed insights into payment instruments including cash, credit transfers, cards, direct debits, and cheques. It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce market analysis.
• Analysis of various market drivers and regulations governing the Nigerian cards and payments industry.
• Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of the Nigerian cards and payments industry.

Key Highlights

• To promote financial inclusion and reduce consumers’ reliance on physical cash, the CBN launched its central bank digital currency, the eNaira, in October 2021. The adoption of the digital currency had a slow start, with only 0.5% of Nigerian individuals using it in 2022. However, the situation changed with the government’s December 2022 demonetization program, which resulted in a cash crunch. Since then, adoption and usage of the eNaira has gained momentum. As of July 2023, the number of eNaira wallets had increased to 13 million. To further encourage usage for low-value transactions, the CBN added NFC-based contactless functionality to the wallet in July 2023.
• To promote electronic payments, the central bank outlined several key recommendations in its Payments System Vision 2025, which aims to transform the country’s payments landscape. Initiatives include expanding access to financial services, promoting agent banking services and contactless payment technologies, and enhancing awareness of security measures among consumers and businesses via financial education. Such initiatives will improve access to banking services, including payment cards. However, these recommendations are still under development; implementation will require long-term commitments and sustained efforts from relevant stakeholders.
• To compete with international scheme providers and strengthen the national payment system, the CBN launched a national payment card scheme called AfriGo in January 2023. The company’s card portfolio includes debit, credit, and prepaid cards. As of December 2023, over 25 banks in Nigeria-including FirstBank, United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), Access Bank, and Zenith Bank-were offering AfriGo debit cards, which are accepted at more than 16,000 ATMs and 70% of POS terminals in the country.

Scope

• Card market size in terms of number of cards, value and volume of transactions in Nigeria along with detailed card segmentation of debit, and credit cards available in the country.
• Market sizing and analysis of major payment instruments including cash, credit transfers, cards, direct debits, and cheques.
• Payment market trends and growth for both historical and forecast period.
• Competitor analysis with detailed insights into leading card issuers and schemes.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• A detailed snapshot of country's key alternative payment brands.

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Nigeria cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in the Nigerian cards and payments industry.
• Assess the competitive dynamics in the Nigeria cards and payments industry.
• Gain insights into marketing strategies used for various card types in Nigeria.
• Gain insights into key regulations governing the Nigerian cards and payments industry.