The Nigeria BNPL market is expected to grow by 13.8%, reaching $1.62 billion in 2025, after a 23.1% CAGR from 2021-2024. The market will continue to rise with a projected CAGR of 10.0% until 2030, reflecting increased e-commerce and financial inclusion. Partnerships among fintech and retailers will enhance service integration and accessibility for consumers, while new regulations will support growth and innovation in the sector.
Nigeria’s Buy Now Pay Later (BNPL) market is projected to grow by 13.8% annually, reaching a value of $1.62 billion in 2025, after achieving a CAGR of 23.1% from 2021 to 2024. The market is anticipated to maintain a growth trajectory of 10.0% CAGR during the 2025-2030 period, expanding from $1.42 billion in 2024 to approximately $2.61 billion by 2030. The report provides an in-depth, data-driven analysis of Nigeria’s BNPL sector, detailing market opportunities and risks across various retail segments, underpinned by over 75 key performance indicators (KPIs).
The increasing adoption of e-commerce, coupled with financial inclusion initiatives and evolving consumer preferences, has significantly bolstered Nigeria’s BNPL market. BNPL is beginning to extend its reach beyond online retail into areas like transportation and utilities, reflecting its role in the broader financial ecosystem. As growth continues, heightened competition is expected to drive providers toward diversifying their offerings, thus enhancing accessibility for a wider consumer demographic.
Strategic partnerships are strengthening the adoption of BNPL, enabling fintech firms and retailers to incorporate flexible payment solutions into their respective platforms. Such collaborations are expected to facilitate the mainstream acceptance of BNPL services, thereby transforming consumer credit management and transaction processes. Over the next two to four years, the BNPL sector is likely to evolve, introducing more customized financing options that contribute significantly to the digital transformation of Nigeria’s financial landscape.
Currently, major players like CredPal, Easybuy, and Motito are scaling operations in a rapidly expanding BNPL market. Notably, partnerships, such as those between Jumia Nigeria and BNPL providers, indicate a maturing sector. As BNPL services embed further into both online and offline retail channels, they are poised to serve as a viable alternative credit option, enhancing financial access for consumers and small enterprises alike.
The market is set to witness increased competition as established firms expand their offerings and new entrants introduce innovative solutions. Recent regulatory developments, including guidelines from the Central Bank for non-interest digital banks, alongside tax incentives for fintech companies, are expected to shape the sector. These measures will ensure sustainable growth and address the risks associated with alternative credit models in Nigeria.
Furthermore, the integration of BNPL services in diverse sectors, such as government-led initiatives for vehicle conversions, underscores the growing need for flexible financing and the importance of addressing financial inclusion. For instance, the government’s ‘convert now, pay later’ initiative aims to facilitate the transition to compressed natural gas vehicles through installment plans, thereby providing essential services more affordably.
As competition increases, BNPL providers will likely introduce tailored products that enhance accessibility and attract a broader consumer base. Moreover, strategic collaborations between BNPL firms and retailers contribute to the quick uptake of these services in both online and offline environments, promoting adoption and further innovation in financial solutions for consumers.
The Nigeria BNPL market is on a strong upward trend, driven by a combination of increased e-commerce activity and enhanced financial accessibility through flexible credit options. As competition intensifies and strategic partnerships proliferate, BNPL is set to become a mainstream financial tool across various sectors. Regulatory changes are expected to fortify this growth, fostering a more inclusive financial ecosystem that significantly enhances consumer purchasing power and credit accessibility.
Original Source: www.globenewswire.com
