A comprehensive overview of the cards, payments and consumer banking market in Nigeria. It is estimated that the annual population growth rate between 2012 and 2030 will be 2.7 percent, and Nigeria is expected to surpass the population of the United States by 2050.
There were an estimated 25 banks operating in Nigeria at the end of 2016. The top five banks in Nigeria together are estimated to account for about 52 percent of the of the country's total retail banking assets.
The Nigerian consumer finance market is in its infancy and remains highly concentrated among the more affluent sectors of society. At the end of 2016, there were an estimated 40 million payment cards (debit and credit) in issue in the country. Debit cards dominate the payment cards market in Nigeria, representing almost 95 percent of all issued cards.
There were about six million mobile money customers and 13,877 agents present in the country at the end of 2016. The total value of mobile money transactions stood at $2.5 billion.
The e-commerce market in Nigeria has grown substantially over the last four years; it is estimated that the segment will contribute about ten percent to the country's GDP by 2018.
TABLE OF CONTENTS
Consumer finance market
Pricing and enhancements
The networks: credit cards
The networks: debit cards
Merchant acquiring and processing
Regulatory and other cards market information
Appendix I: Demographics
Appendix II: The economy
Appendix III: Retail banking
Appendix IV: Consumer finance market
Appendix V: Cards market
Appendix VI: E-money
Appendix VII: Profit pool
Appendix VIII: Pricing and enhancements
Appendix IX: The networks: credit cards
Appendix X: The networks: debit cards
Appendix XI: Card issuers
Appendix XII: Merchant acquiring and processing
Appendix XIII: Online acquiring
Demographics and Economy
Nigeria is one of the most ethnically and linguistically diverse countries in the world, with more than 250 different ethnic groups and more than 500 languages.
The top five banks in Nigeria ranked by total asset value are Zenith Bank, First Bank of Nigeria (FirstBank), Access Bank, Guaranty Trust Bank (GTBank) and United Bank of Africa (UBA). These five banks together are estimated to account for about 52% of the country's total retail banking assets.
At the end of 2016, total consumer-credit outstandings reached an estimated $3.9 billion, representing a growth of 4% compared with 2015. Further growth is expected as financial inclusion increases and the economy continues to grow.
The payment cards market in Nigeria remains in a developmental stage. At the end of 2016, there were an estimated 40 million payment cards (debit and credit) in issue in the country.
The growth of mobile banking services is gaining momentum in Nigeria. There has been a considerable rise in the use of the internet and in mobile phone penetration in the country, which has widened the opportunities for banks to roll out mobile banking services.
It will take several years and considerable investment from retail banks for the market to develop any clear characteristics. There were an estimated two million credit cards at the end of 2016, representing a penetration rate of 1.6 cards per 100 adults.
A number of policies and initiatives including Cash-lite, the national cashless policy initiative, were introduced by the CBN to drive the development and modernisation of Nigeria's
Key Retail Banks and Issuers
Nigeria's credit cards market is highly concentrated among the top six issuers: Diamond Bank, FirstBank, Access Bank, UBA, Ecobank, and Zenith Bank. At the end of 2016, these six banks were estimated to hold a combined market share of 93% in terms of credit cards in issue.
Acquiring and Processing
Acquiring in Nigeria is dominated by large banks, with UBA, Zenith Bank, GTBank and Access Bank accounting for approximately 79%t of credit-card acquired billed volume in 2016. The three main processors operating in Nigeria are Interswitch, Unified Payments, and Cards Technology.
The e-commerce market in Nigeria has grown substantially over the last four years; it is estimated that the segment will contribute about 10% to the country's GDP by 2018.
Regulatory and Markets Information
Nigeria's government has embarked upon a strategic plan, the Financial System Strategy 2020 (FSS 2020), to grow the economy into one of the 20 largest in the world by the end of the decade.
Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Africa. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and African finance experts.
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