How digital payments fuel sales for small farmers in northern Nigeria

Smallholder farmers in Northern Nigeria are recording higher sales and improved business efficiency as digital payments increasingly replace traditional cash transactions in rural markets.

A recent case study by Moniepoint on Inside Nigeria’s food chain disclosed that in communities like Zabarmari and across trade hubs such as Maiduguri’s Monday Market, mobile transfers and point-of-sale (POS) machines are enabling farmers to sell more confidently, access larger markets, and reduce the risks associated with handling physical cash.

The mobile financial service provider revealed that over 45 percent of customers in Borno markets now prefer digital payments, with 28.6 percent opting for bank transfers and 17 percent using POS terminals.

The report pointed out that Isiaka and Abacha, small-scale farmers based in Zabarmari, used to collect cash after harvests of tomatoes and peppers. Now, they use Moniepoint’s platform to receive payments directly into their accounts. The change has allowed them to improve cash flow, reinvest more quickly in their farms, and operate with greater peace of mind.

“Customers prefer Moniepoint for large transfers because it’s instant and reliable,” Isiaka said. The duo’s daily harvest of 40 to 50 buckets now generates more stable income, without the security concerns and delays tied to physical cash handling.

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For rice farmer Isah Saidu, digital payment tools have also brought critical benefits. With over 25 years of experience, Isah used to accompany customers to the bank to avoid carrying large sums in person. Today, he receives payments remotely from traders and millers across Borno and Southern Nigeria and tracks them instantly through mobile alerts.

“Before, I would take the customer to the bank because I didn’t want to carry too much money. Now I get alerts instantly,” he said.

Digital payments have also enabled farmers to reach new buyers beyond the Northeast. While most customers still come from Maiduguri (62.5 percent), a growing share of over 11 percent are from southern cities like Lagos, Port Harcourt, and Asaba, as well as neighboring countries such as Cameroon.

POS availability is becoming a standard requirement for traders. One grain seller at Monday Market noted that some customers now ask if they can pay by card before even inspecting goods. “We lose customers when we don’t have a POS machine,” he said. “People expect it now.”

Agro-traders and input suppliers are also adapting. Mohammed, who runs a poultry and feed supply store, moves over N100,000 worth of stock daily using mobile transfers. “Imagine carrying that kind of cash around. Anything can happen. Now I just transfer. No delay. No stories,” he said.

Haruna, an agrochemical seller in the same market, receives orders via WhatsApp voice notes and fulfills them after confirming instant payments. This system helps him move quickly during peak seasons and source stock from across state lines with minimal disruption.

Tosin Eniolorunda, CEO of Moniepoint Inc. noted that “Moniepoint believes financial inclusion is not just about access. It’s about dignity, about enabling people to transact on their terms. What’s happening in the North East today is significant.”

“Farmers and traders who were once excluded from formal systems are now part of a national digital network, able to access capital, manage risk, and grow. This shift isn’t just tech-enabled, but it’s structurally impactful work. It’s about creating an economy where everyone can participate, no matter their location or background,” he said.

Even in areas without physical bank branches, the report said financial access is expanding. In Zabarmari, where formal banking is limited, farmers now use Moniepoint cards for secure withdrawals and account access.

“The cards, designed without personal details printed on them, offer peace of mind in a region where identity theft and digital literacy challenges remain.”

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Human infrastructure plays a role too. Moniepoint assigns local business relationship managers who support traders in Hausa or Kanuri, resolve terminal issues, and help build trust in digital platforms. “If there’s a problem with my terminal, she’ll come here,” one trader said.

For many farmers, digital alerts are now critical to business operations. Mohammed, who trades grains across Nigeria, relies on transfer confirmations before releasing stock on credit.

“I need to know when the money drops,” he said. Without that, deals fall through and supply chains stall.

While many farmers still purchase inputs in cash, digital transactions are becoming essential for sales, especially in bulk. POS machines are not only practical, they also lend credibility to small businesses in a competitive marketplace, the report said.

Digital payments are reshaping informal trade networks. They reduce theft, ease logistics, and enable participation in broader supply chains. From rice fields to livestock yards, farmers are leveraging these tools to grow their operations and sustain livelihoods.

“What used to be an informal, cash-heavy economy is now becoming more structured, connected, and secure,” the report disclosed.