Nigeria’s Buy Now, Pay Later market is projected to expand significantly over the next five years, reaching about $3.9bn by 2031. The forecast signals rising adoption of instalment-based consumer financing across retail and digital commerce.
According to the Q1 2026 industry databook published by Research and Markets, the sector is expected to grow at an annual rate of 20.6 per cent to reach approximately $1.88bn in 2026.
The market had already recorded strong momentum between 2022 and 2025, posting a compound annual growth rate of 25.9 per cent during the period.
“This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 16.1 per cent from 2026 to 2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of $1.55bn to approximately $3.96bn,” the report stated.
The report identified several players operating within Nigeria’s BNPL ecosystem. It also highlighted key market opportunities, including strategic expansion into high-growth categories such as retail shopping and e-commerce, the adoption of diverse business models, and optimisation of distribution channels like online platforms and point-of-sale terminals.
Across Africa, the BNPL market is projected to grow at an average annual rate of 14.8 per cent between 2025 and 2030. By the end of the decade, it is expected to reach a total value of about $10.63bn.
The report noted that the African BNPL sector had already experienced rapid expansion, recording an average annual growth rate of 29.4 per cent between 2021 and 2024. By the end of 2024, the market had reached $4.48bn.
The rapid growth of the sector has been largely driven by the integration of BNPL solutions into e-commerce platforms seeking to attract more customers and boost sales. By allowing payments to be spread over time, BNPL services have reshaped consumer shopping habits, enabling buyers to purchase more expensive and higher-quality products.
The report added that as Africa’s BNPL market becomes increasingly competitive, regional and international players investing in technology, innovation, and strategic partnerships will be better positioned to tap into emerging opportunities.
