Moniepoint Highlights Role of Digital Payments in Strengthening Agricultural Trade in North-East Nigeria
A new case study released by Moniepoint has spotlighted how digital financial tools are transforming agricultural trade in Borno State, a key hub in North-East Nigeria. The report offers fresh insights into how traders, farmers, and food value chain actors in the region are adapting to the evolving financial services landscape to sustain commerce, boost resilience, and reinforce Nigeria’s food security.
According to the report, food traders in Maiduguri – the Borno State capital – continue to dispatch goods to cities across Nigeria and neighboring countries, positioning the region as a vital player in cross-border food distribution and trade. This ongoing commercial activity is seen as a significant contributor to national food security, despite the long-standing security challenges faced in the North-East.
Nearly 37% of the food chain actors surveyed in the study have been in business for more than 10 years, reflecting deep-rooted local knowledge and generational expertise. This longevity points to a resilient commercial tradition forged through years of conflict and economic fluctuation.
One of the key findings of the study is the diversity and flexibility in traders’ transportation choices. Depending on the nature of the goods and the safety of the routes, traders use a mix of logistics options: 30.4% rely on shared trucks for bulk transport, 23.2% use commercial tricycles, and others operate with motorcycles. This adaptive approach enables traders to respond quickly to varying challenges across the supply chain, balancing speed, discretion, and cost-effectiveness.
Significantly, the report highlights a steady rise in the adoption of digital payment systems among agricultural traders. In the wake of Nigeria’s 2023 cash crunch, which exposed the vulnerabilities of cash-based transactions, digital tools have gained ground. The study shows that over 45% of traders in Borno now accept digital payments. Bank transfers account for 28.6%, while POS usage—powered by platforms like Moniepoint—has risen to 17%.
“Digital tools have reduced theft, simplified accounting, and made payments safer,” said Isiaka, a pepper farmer in Zabarmari, Borno. “Before, we carried wads of cash. Now, I use transfers and get alerts instantly.”
The case study is part of Moniepoint’s growing body of thought leadership materials designed to inform stakeholders—ranging from regulators and investors to the wider public—about the evolution of financial services in Nigeria’s informal and semi-formal economies. Previous editions have examined family-owned businesses, the Onitsha Market in South-East Nigeria, women-led enterprises, and community pharmacies. These reports have collectively demonstrated how digital financial solutions are reshaping commerce across a variety of sectors and geographies.
Moniepoint’s unique hyperlocal approach—driven by its agents who speak local languages and offer real-time, on-the-ground support—has been instrumental in bridging access gaps in underserved regions. The company’s strategy is focused on meeting informal sector actors where they are, providing them with tools that align with their realities and help unlock the full economic potential of the agricultural value chain.
As smallholder farmers, livestock dealers, and poultry merchants across the North-East continue to rely on informal systems, Moniepoint’s commitment to inclusive growth and grassroots empowerment is enabling them to thrive in a fast-changing financial environment.
The full report and other case studies are available at: https://casestudies.moniepoint.com/
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