A new study by Moniepoint Inc., Africa’s leading financial institution, has revealed that livestock traders in Nigeria’s North East region experience a significant surge in sales and income during Nigeria’s festive seasons, particularly Eid al-Adha and Christmas.
According to the report, traders at Kasuwan Shanu in Gamboru coordinate the movement of hundreds of cattle, goats, and rams during peak periods, with an average of 50 trucks dispatched daily to major cities like Lagos, Port Harcourt, and Onitsha.
Prices soar during these periods, with rams rising by over 230% and goats commanding increases of 400% to 470%, depending on demand.
Beyond seasonal trading, the report highlights a shift toward a more investment-minded approach among livestock traders.
Rather than relying solely on quick-turnover sales, many now purchase and raise livestock in advance to increase resale value.
This added layer of value creation is contributing to a more stable and profitable business model for traders across the region, underscoring the growing sophistication of Nigeria’s informal livestock economy.
The agricultural sector, which is the bedrock of Nigeria’s non-oil economy, contributed 24.64% to the nation’s real GDP in the fourth quarter of 2024.
The positive trends amplified in this study must be viewed against the backdrop of Nigeria’s North East, as a region that has been grappling with the economic fallout of the area’s volatility and decade-long conflict, estimated to have cost the nation over US$100 billion.
Smallholder farmers dominate food production in the region, with over 80 per cent cultivating less than two hectares and producing nearly 90% of Nigeria’s food.
In Borno State alone, farmers produce more than 2 million metric tons of staple crops annually, and the informal market remains the primary engine driving the movement of these goods.
The report found that 51.2% of traders in Borno source their goods from Maiduguri, a hub that serves as a conduit for livestock, grains, vegetables, and agrochemicals to cities across Nigeria. Yet despite this scale, most transactions still happen outside formal banking structures.
“Our research shows that credit is mostly informal, payments are often made in person, and records are kept by memory or handwritten ledgers,” the report noted.
Furthermore, the study highlights the deep trust underpinning informal trade in Borno’s livestock markets, where buyers often place high-value orders using only phone numbers and voice notes.
In many cases, no formal contracts or documentation are exchanged as longstanding relationships and reputation bridge this gap.
This trust-based system enables rapid, large-scale transactions across distances, especially during peak festive demand.
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 continues,
“The story of Nigeria’s food chain is a story about people. Our role is to empower them with tools that are built for their reality. By providing secure, reliable, and instant payment solutions, we are helping to de-risk their operations and connect them to the broader national economy. The data shows that when you build on the organic, trust-based networks that already exist, you don’t just support socio-economic development, you accelerate it. These are not just individual livelihoods, they are the hidden engines of Nigeria’s economy.”
Some Insights from the Study:
- Over 51% of traders source and dispatch their goods from Maiduguri to cities across Nigeria and neighbouring countries, reinforcing its critical position as a site that contributes significantly to Nigeria’s food security.
- Nearly 37% of food chain actors surveyed have been in business for over a decade, underscoring the depth of local knowledge and the continuity of food-related enterprise in the region, which has been forged on the back of generational expertise and resilience.
- Traders employ a diverse array of transportation methods, depending on their needs: 30.4% use shared trucks for bulk transport, while 23.2% rely on smaller, more nimble commercial tricycles, and others use motorcycles. This flexibility allows traders to tailor their logistics to the security of a given route, the size of the consignment, and the need for speed or discretion.
Digital tools are gradually becoming embedded in these systems. The study found that over 45% of traders in Borno now accept digital payments, with transfers accounting for 28.6% and POS usage at 17%.
This adoption has grown significantly since Nigeria’s cash crunch in 2023 highlighted the risks associated with cash-based trade.
In response, tools like Moniepoint’s POS and credit alerts, enabled mobile transfers, have become vital to how these farmers and traders operate.
“Digital tools have reduced theft, simplified accounting, and made payments safer,” said Isiaka, a pepper farmer in Zabarmari. “Before, we carried wads of cash. Now, I use transfers and get alerts instantly.”
This latest case study joins the growing pool of thought leadership materials curated by Moniepoint for the benefit of stakeholders, including regulators, investors, and the general public, aimed at enhancing their understanding of the financial services ecosystem in Nigeria.
Previous case studies have explored family-owned businesses, South East’s Onitsha Market, community pharmacies, women-owned businesses and the definitive Informal Economy Report, collectively demonstrating how digital payment solutions are transforming Nigeria’s commercial landscape across diverse sectors and market structures.
As majority of food producers and traders in Nigeria’s North East – ranging from smallholder farmers to livestock dealers and poultry merchant – continue to rely on informal systems to power agricultural trade, demonstrating remarkable resilience despite years of conflict, Moniepoint’s hyperlocal approach woven around the company’s on-the-ground personnel, who speak local languages and provide real-time support, is helping bridge long-standing gaps in access to finance while deepening its roots as a trusted market leader driving inclusive growth from the ground up.
Meeting informal sector actors where they are through tools that match their realities is key to unlocking the agricultural value chain’s full economic potential.
Moniepoint case studies can be found here.
