Nigeria’s Buy Now, Pay Later (BNPL) sector is on course to experience a dramatic expansion over the next six years. According to the State of Enterprise 2025 report, the market will grow from $1.42 billion in 2024 to $2.61 billion by 2030. This represents a projected increase of more than 83%, with a compound annual growth rate (CAGR) of over 10%.

Between 2021 and 2024, BNPL services in Nigeria already grew at a remarkable CAGR of 23.1%. Now, analysts expect this upward trend to continue as more consumers and small businesses embrace flexible payment options driven by fintech innovation.

Fintech Drives Financial Transformation

The growth of the BNPL market forms part of a larger story of how fintech companies are revolutionizing Nigeria’s financial ecosystem. These digital innovators are enabling broader access to capital, increasing financial inclusion, and enhancing the resilience of businesses and individuals.

The report emphasizes that fintech platforms have delivered major improvements to the way Nigerians access credit and manage transactions. Their services include digital payments, data analytics, automated payroll systems, and consumer credit tools such as BNPL.

Additionally, fintechs have become instrumental in breaking down traditional banking barriers by delivering mobile-first platforms that don’t require users to visit bank branches. This evolution has allowed more people to participate in the formal economy, especially those in underserved or remote areas.

Over 400 Licensed Digital Lenders Power Credit Access

Digital lending has taken center stage in Nigeria’s financial sector. Currently, over 400 licensed digital lending operators offer collateral-free loans to individuals and small businesses that typically lack access to traditional bank credit.

These lenders have become a critical part of the country’s financial inclusion strategy. By using data-driven tools to assess risk and provide credit, they are enabling many first-time borrowers to fund personal needs or scale their enterprises.

BNPL providers are leveraging this same model to offer installment payment options for everyday products, allowing consumers to manage cash flow more efficiently while supporting retailers with higher sales conversion rates.

Remittance Inflows Surge After CBN Reforms

Another key highlight from the State of Enterprise 2025 report is the surge in remittance inflows into Nigeria. Following a series of reforms introduced by the Central Bank of Nigeria in 2024, the country saw a 63.7% increase in inbound remittances—rising from $2.33 billion in 2023 to $3.82 billion in 2024.

This significant boost reflects the growing role of digital channels in cross-border transactions. Fintech-driven platforms are now providing more competitive exchange rates, faster processing times, and easier access to funds, all of which are improving the efficiency and transparency of remittance services.

Instant Payment Volumes Reach Historic Highs

In line with the broader digital finance growth, the volume of instant payment transactions in Nigeria soared to unprecedented levels. In 2024, Nigeria Inter-Bank Settlement System (NIBSS) reported that instant payments hit ₦1.07 quadrillion—an 80% jump from ₦600.36 trillion in 2023.

The report further noted that in December 2024 alone, ₦115.1 trillion was processed through instant payments, up from ₦71.9 trillion in December 2023. These figures highlight the fast-paced shift toward real-time digital transactions and confirm the population’s growing trust in digital finance solutions.

POS and Mobile Money Transactions Continue to Climb

Nigeria also witnessed a sharp rise in Point-of-Sale (POS) and mobile money transactions in 2024. POS terminals processed ₦18.32 trillion through 1.38 billion transactions, marking a significant expansion in card-based retail activity.

At the same time, mobile money platforms handled ₦79.55 trillion in transactions, representing a 70.6% year-on-year increase. Transaction volumes grew by 28%, moving from 3.04 billion in 2023 to 3.9 billion in 2024. This growth underlines the increasing preference for mobile and digital payment solutions among consumers and businesses alike.

Why BNPL Is Gaining Popularity

Several factors are contributing to the rapid adoption of BNPL services in Nigeria. First, the rising cost of goods and services has made consumers more inclined to spread payments over time rather than pay upfront. BNPL provides a practical solution to manage these costs without the need for traditional loans or credit cards.

Second, Nigeria’s youthful population is more digitally inclined and open to fintech-driven innovations. Mobile-first platforms offering BNPL services cater specifically to this demographic, delivering convenience, speed, and flexibility.

Third, merchants are increasingly integrating BNPL solutions into their checkout systems to boost sales, reduce cart abandonment, and enhance customer loyalty. This win-win dynamic between consumers and retailers continues to propel BNPL’s expansion.

Fintechs Expanding Services Beyond Credit

While BNPL and digital lending remain at the forefront, fintech companies are diversifying their offerings. Many now provide tools that simplify payroll management, tax reporting, and customer engagement. Platforms like FairMoney and Renmoney are also pioneering the delivery of instant loans using mobile apps, further easing access to finance for everyday Nigerians.

At the enterprise level, fintechs are helping businesses digitize operations, gain insights from financial data, and integrate with global payment systems—all of which improve efficiency and competitiveness.

Outlook: Opportunities and Challenges Ahead

Despite its impressive growth, the BNPL space must navigate key challenges to sustain momentum. Regulatory oversight will play a vital role in maintaining consumer protection, managing debt risk, and fostering healthy competition. As more players enter the market, differentiation through technology, transparency, and responsible lending will become crucial.

However, the outlook remains optimistic. With increased smartphone penetration, a vibrant fintech ecosystem, and growing demand for flexible financial solutions, Nigeria is well-positioned to maintain its upward trajectory in the BNPL and digital lending space.

Conclusion

Nigeria’s financial sector is undergoing a digital revolution, with BNPL services leading the charge. Projected to reach $2.61 billion by 2030, the BNPL market exemplifies how technology is democratizing access to credit and reshaping consumer behavior.

As fintechs continue to innovate, expand access, and break down barriers, Nigeria’s economic future appears more inclusive, efficient, and digitally driven than ever before.