Food Service Industry Defies Economic Headwinds, Grows To $11.09bn

Nigeria’s foodservice industry has demonstrated remarkable resilience despite rising inflation, higher food prices and changing consumer spending patterns, growing into an estimated $11.09 billion market driven by digital payments, online food delivery and technology-enabled business operations.

This is according to a new industry case study by Moniepoint titled “What It Takes to Feed Nigeria Every Day: The Payment Story Behind Its Food Service Industry,” which highlighted how food businesses have continued to expand despite challenging economic conditions.

The report noted that food remains one of the country’s most resilient sectors because demand is constant, with Nigerians needing to eat regardless of prevailing economic realities. It added that operators have consistently adapted to inflationary pressures, fluctuating input costs and shifting consumer preferences, while digital payment infrastructure has become increasingly central to business growth.

According to the study, Nigeria’s food service industry has evolved over the past four decades from a predominantly cash-based ecosystem of roadside vendors and neighbourhood restaurants into a technology-driven sector supported by real-time digital payments, food delivery platforms and a growing number of cloud kitchens operating without traditional dining spaces.

The report estimated Nigeria’s online food delivery market at $1.04 billion in 2024, reflecting the rapid adoption of digital ordering channels by consumers and restaurant operators. It also revealed that more than 800 quick-service restaurant outlets now operate across the country, underscoring the steady expansion of organised food businesses.

Commenting on the report, Group Chief Executive Officer of Moniepoint Inc., Tosin Eniolorunda, said financial inclusion extends beyond access to payment services and should empower businesses to operate more efficiently.

According to him, the real competitive advantage in today’s foodservice industry lies in integrating payment infrastructure into daily business operations.

“What is happening in the foodservice sector today is significant. The real competitive question is how deeply payment infrastructure is woven into the way the business actually runs day to day,” Eniolorunda said.

He explained that Moniepoint is connecting payments with inventory management, procurement, recipes, access to credit and growth planning through digital solutions such as Moniebook and Orda.

“We are providing the digital operating system that drives sustainable scale for Nigeria’s socio-economic development,” he added.

Drawing from industry data, the report showed that quick-service restaurants accounted for 55.92 per cent of Nigeria’s foodservice market in 2025, reflecting consumers’ growing preference for affordable, convenient dining options amid prevailing economic conditions.

Cloud kitchens emerged as the fastest-growing segment of the market, with projected annual growth of 12.75 per cent through 2029 as more operators adopt delivery-based business models and digital ordering platforms.

Despite the sector’s size, the report noted that Nigeria’s organised foodservice market remains highly fragmented, with thousands of businesses competing across different price categories and market segments. It was observed that no single operator controls more than 1% of the market, leaving significant opportunities for expansion and new investment.

The report further identified digital payment adoption as one of the strongest drivers of industry growth, noting that Point-of-Sale terminal usage among quick-service restaurants increased significantly following the implementation of Nigeria’s strengthened cashless policy in 2023.

It concluded that the continued integration of payment technology with business operations, inventory management and access to finance will play a critical role in sustaining the growth of Nigeria’s rapidly evolving food service industry.