Nigeria’s Buy Now, Pay Later (BNPL) industry is set to experience exponential growth, with expectations that BNPL payments will reach $2.8 billion by 2023, according to a new report.

The key companies in the Nigerian BNPL market include Carbon, Cdcare and PayQart, according to the authors of “Nigeria Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics – Q2 2023 Update.”

The growth rate of the Nigerian BNPL market is 12.7%, with an estimated value of $5.1 billion by 2028, according to the report which tracked the changing trends driven by e-commerce growth in the country. 

This significant boost in BNPL transactions, the authors say, can be attributed to the dynamic market in Nigeria and the growing popularity of BNPL services provided by companies like Carbon, CDCare, and PayQart. 

The adoption of BNPL services has been steadily rising, driven by the convenience and flexibility they offer to consumers. With BNPL, customers can make purchases and spread their payments over time, without incurring traditional credit card interest rates.

This explosive growth in Nigeria’s BNPL industry aligns with global trends as BNPL services continue to gain traction in various markets around the world. With this projected growth, Nigeria’s financial technology (fintech) sector is set to play a pivotal role in shaping the future of retail transactions in the country, the report predicts.

“Medium to long term growth story of the BNPL industry in Nigeria remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 12.7% during 2023-2028. The BNPL Gross Merchandise Value in Nigeria will increase from US$2.3 billion in 2022 to reach US$5.1 billion by 2028,” the authors say.

“The BNPL payment industry in Nigeria,” the report says, “has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.”