Nigeria Cards and Payments - Opportunities and Risks to 2026

This 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, cheques, and direct debits during the review-period (2018-22).

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 (2022-26f). 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.

The 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, cards, credit transfers and direct debits. It also, includes an overview of the country's key alternative payment instruments.
• E-commerce 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.

Scope

• To compete with international scheme providers, make payments more accessible and affordable for Nigerians, 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. In March 2023, Access Bank became the first bank to offer AfriGo debit cards in the country.
• The most important factor contributing to the country’s banking penetration is the widespread use of an agent banking system. In February 2019, the CBN, deposit money banks, mobile money operators, and banking agents launched SANEF. The network consists of individuals and small businesses who provide financial services on behalf of financial institutions. It offers basic banking services such as cash deposits and withdrawals, fund transfers, bill payments, airtime purchases, and disbursement of government funds. SANEF had over 1 million agents as of February 2022 across over 774 local government areas, offering basic banking services to underserved urban and rural individuals via 28 partner banks. The number of agents stood at just 85,000 in December 2018, while the ratio of agents per 100,000 adults rose from around 80 in 2018 to 985 in February 2022.
• In a bid to curb rising inflation, the central bank has increased its key benchmark interest rate. As of March 2023, the interest rate stood at 17.5%. This will affect consumer purchasing power, which in turn will impact the cards and payments market. Additionally, increased uncertainty as a result of high inflation and rising commodity prices - as well as economic slowdown in Nigeria - will impact the credit and charge card market, as both consumers and businesses will reduce their expenditure.

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Nigerian 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 Nigerian 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.