Bank Transfers Dominate Nigeria’s Nightlife Economy, Moniepoint Report Shows

A new industry report from Moniepoint Inc. reveals a major shift in how Nigerians spend money during nighttime activities, with bank transfers rapidly overtaking card payments across the country’s nightlife sector.

While luxury lounges generating hundreds of millions of naira during festive periods like “Detty December” often capture public attention, the company’s latest research highlights a different reality. The real economic momentum, the report suggests, is happening within grassroots nightlife communities, neighborhood bars, roadside vendors, and local entertainment hubs.

The study, titled The Business of Community Nightlife in Nigeria, analyzed transaction data from more than 27,000 clubs, bars, and lounges nationwide, offering a detailed look at how money flows through Nigeria’s after-hours economy and how digital payments are reshaping informal business operations.

Nigeria’s Nightlife Is Rapidly Going Cashless

One of the report’s most striking findings is the rapid decline of cash transactions in nighttime venues. Unlike much of Nigeria’s informal economy, where cash still dominates, nightlife businesses are increasingly embracing digital payments, largely driven by security concerns.

The data shows that bank transfers significantly outperform card payments during peak nighttime hours on the Moniepoint network, exceeding card usage by nearly two million transactions. This shift reflects both consumer preference and operational convenience for vendors.

To support faster service and reduce payment disputes, many venues now rely on Moniepoint’s POS Transfer system, which provides instant audio confirmation of successful transactions. This eliminates delays associated with waiting for SMS alerts or verifying screenshots, allowing businesses to serve customers more efficiently in high-demand environments.

Security considerations have also influenced payment innovation. Moniepoint has introduced payment cards designed without visible card numbers or CVV details, reducing the risk of sensitive data theft in crowded nightlife settings.

When Spending Peaks and When It Slows

The report also highlights a clear difference between peak crowd hours and peak spending periods. While nightlife activities often continue until early morning, most consumer spending occurs much earlier in the night.

Transaction volumes begin rising sharply around 8:00 PM and reach their highest level at 11:59 PM. After midnight, spending gradually declines, even though venues typically remain busy until around 6:00 AM.

For business operators, this pattern has practical implications. Inventory management, vendor payments, and revenue optimisation strategies must focus on early-night activity, as the economic value of the evening is largely determined before midnight despite sustained customer presence later.

Growth Beyond Major Urban Centers

Although Lagos leads the country in the number of nightlife establishments, with nearly 4,900 venues, the report shows that Nigeria’s night economy is widely distributed across different regions and income levels.

Katsina State recorded the highest payment value for nighttime food truck operations, with vendors generating more than ₦130 million over the past year. Meanwhile, Kwara State ranked highest in total transaction volume, demonstrating that frequent low-value purchases form the backbone of community nightlife spending.

The research also reveals that food sales play a stabilizing role in revenue generation. While alcoholic beverages typically deliver higher profit margins, everyday items such as meals and bottled water often outperform beer and spirits in early evening sales, particularly in neighbourhood venues.

Nightlife as a Major Employment Engine

Beyond revenue, the report underscores nightlife’s significant role in employment. Conservative estimates indicate that at least 54,000 people work in nightlife-related activities each night across Nigeria. Local venues typically increase staffing by between 30% and 50% during weekends to meet higher demand.

Tosin Eniolorunda, co-founder and Group CEO of Moniepoint, emphasised that the sector deserves greater strategic recognition due to its economic impact.

He explained that providing businesses with access to financial tools, including credit for equipment such as sound systems and faster payment settlements, could help operators expand and improve service delivery.

Interestingly, the report found that most loan requests from nightlife businesses are not focused on working capital. Instead, operators primarily seek funding for ambience upgrades, such as improved lighting, furniture, and sound systems, reflecting intense competition where customer experience directly influences retention.

Read More: How Moniepoint Built a Full-Stack Fintech in Two Years

A Digitally Driven Informal Economy

Technology analysts view Moniepoint’s findings as evidence that Nigeria’s nightlife sector is evolving into a structured, technology-driven industry rather than remaining a purely informal activity. The growing adoption of digital payments, particularly POS transfers, is helping integrate roadside vendors and small neighbourhood businesses into the formal financial ecosystem, advancing financial inclusion.

However, the study also highlights operational challenges. The slowdown in spending after midnight, despite full venues, suggests that businesses need better data tools to manage customer behaviour and reduce prolonged table occupancy without additional purchases.

What Comes Next for Nigeria’s Night Economy

As Nigeria’s nightlife industry continues to professionalise, the next phase of growth may come from embedded financial services. Access to instant credit based on transaction history could enable bar owners and vendors to upgrade facilities, expand operations, and improve customer experiences.

The report ultimately positions Nigeria’s nighttime economy as a rapidly evolving sector driven by digital payments, data insights, and increasing formalisation, signalling a broader transformation in how informal markets operate in a technology-enabled environment.