Digital payment channels now account for 43 per cent of fuel transactions in Nigeria, signalling a significant shift away from cash in the downstream oil and gas sector.
This was revealed in a new case study released by financial services platform Moniepoint, titled “Fuelling the Nation: How Moniepoint Powers Nigeria’s Oil and Gas Industry.”
The study examined payment systems, access to credit and inventory management practices among petrol station operators across the country. It found that point-of-sale (POS) terminals have become standard infrastructure, with 90.9 per cent of fuel stations relying on them for daily operations.
Petrol stations remain central to Nigeria’s energy and transport ecosystem. With over 90 per cent of passenger and freight movement dependent on road transport, stations collectively facilitate between 41 million and 47 million litres of petrol daily.
Despite their importance, many operators face structural financial challenges. One major issue is the “T+1” settlement cycle, where funds from card payments are only accessible the next day.
In a sector known for thin profit margins and frequent restocking needs, this delay can lead to fuel shortages—commonly referred to as “dead tanks”—and significant revenue losses.
Moniepoint said its same-day settlement solution is helping to close this liquidity gap. The platform enables station owners to access funds immediately, pay suppliers promptly and maintain consistent fuel availability.
According to the report, one in three petrol station owners identified access to credit as their biggest recurring challenge.
The fintech unicorn disclosed that it has disbursed millions of naira in working capital to fuel retailers, recording a 99.81 per cent repayment success rate. Nearly three in five stations have transitioned from cash-dependent, manually operated businesses to digitally enabled enterprises with access to payments infrastructure and growth capital.
Managing Director of Moniepoint Microfinance Bank, Babatunde Olofin, said the report was designed to deepen policy engagement and provide data-driven insights to support socio-economic development.
“We are pleased to release this comprehensive report on Nigeria’s downstream sector,” Olofin said. “With data from business transactions and our management tools, petrol stations can plan inventory more effectively, know when to restock and ensure operations run smoothly to serve more customers.”
He added that improving access to financial tools for fuel retailers would strengthen distribution networks and support a more efficient and equitable energy system.
The downstream oil and gas case study follows earlier Moniepoint reports covering sectors such as family-owned businesses, open markets, community pharmacies, women-led enterprises and agriculture in the North-East.
Moniepoint processes billions of naira in transactions monthly and provides payments, banking, credit and business management solutions to millions of businesses nationwide, positioning the company as a key driver of financial inclusion and operational efficiency in Nigeria.
