A new case study by Moniepoint Inc. has revealed that electronic transfers are now a more common means of payment than cash in Nigeria’s nightlife sector.
The study, titled The Business of Community Nightlife in Nigeria, highlights the growing economic importance of informal nightlife hubs such as roadside bars, suya spots and neighbourhood joints.
According to the report, while high-end “Detty December” venues often dominate headlines with daily revenues reaching N360 million and table prices as high as N1.2 million, community nightlife venues form the bedrock of social life for millions of Nigerians.
The research drew data from transactions across more than 27,000 clubs, bars and lounges operating on Moniepoint’s payment network. It was supported by field interviews and observational research conducted in multiple cities across the country.
The report found that cash is playing a diminishing role in nightlife payments. Bank transfers dominate transactions, followed closely by card payments. Cash is increasingly discouraged due to security concerns.
Moniepoint’s data shows that transfers outpace card payments by nearly two million transactions during peak nighttime hours across its network.
“In stark contrast to wider informal economy trends, cash plays a diminishing role in nightlife payments,” part of the report stated.
The study also revealed that nightlife spending follows a distinct pattern. Transaction volumes begin rising sharply from 8pm and peak before midnight. Spending then declines steadily, even as venues remain crowded into the early hours.
By the time nightlife activity stretches into its longest hours, purchasing activity has already slowed.
For operators, this pattern has practical implications. The most critical hours for staffing, stocking, vendor payments and cash flow management are between midnight and 6am.
The report highlighted the sector’s contribution to employment. Local bars typically expand their workforce by 30 to 50 per cent on peak nights.
Conservative estimates suggest that at least 54,000 people are engaged in nightlife-related labour every night across Nigeria.
The Co-Founder and Group Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda, said the sector deserves greater recognition.
“Nigeria’s local bars and nighttime operators are not peripheral to the economy; they are a critical part of its architecture,” he said.
He added that Moniepoint aims to support these businesses with tools such as credit for renovations, same-day settlement for restocking, and inventory management solutions like Moniebook.
While alcohol remains a key revenue driver, the data shows that food plays a stabilising role in many neighbourhood venues.
In several communities, bottled water and meals outsell beer and spirits, particularly in the early evening hours. The most common transaction narrations included “food”, “pay”, “sent”, “POS” and “cash”, reflecting diverse nightlife spending patterns.
The study found that Lagos has the highest concentration of nightlife establishments, with 4,856 bars, clubs and lounges on the Moniepoint network.
The Federal Capital Territory follows with 2,515 establishments, while Rivers (2,362), Delta (1,930) and Edo (1,574) round out the top five.
Katsina recorded the highest nighttime food truck payment value, with vendors generating over N130 million in the past 12 months. Kwara State led in transaction count.
Moniepoint said it would continue supporting the sector with innovations such as “POS Transfers”, which assigns a dedicated bank account to each terminal and provides instant audio-visual confirmation for transactions.
The company also noted that its cards are designed without visible card numbers, expiry dates or CVVs to enhance consumer security.
As one of Nigeria’s largest financial service distributors, Moniepoint processes billions of naira in transactions monthly and continues to expand its reach across payments, banking, credit and business management solutions.
