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The Nigerian ‘buy now pay later (BNPL)’ market is booming, but the method used in recovering money from defaulters remains a subject of concern.
The BNPL payment market is now booming and is expected to grow by 13.8 percent annually to reach $1.62 billion by the end of 2025, according to the latest report by ResearchAndMarkets.com.
Investopedia describes BNPL as a type of short-term financing that allows consumers to make purchases and pay for them over time.
The market is thriving in Nigeria on the back of high inflation that has weakened consumer spending, leaving buyers of retail products with no choice.
“The huge appetite that Nigerian consumers have for ‘buy now pay later’ is due to the high level of inflation, which the income levels are not meeting,” Uchenna Uzo, a professor of marketing at Lagos Business School, said.
He stated that a lot more people are poorer than they used to be, hence the BNPL allows them to pay when the money is available to them.
A report by ResearchAndMarkets.com said the BNPL market experienced robust growth from 2021 to 2024, achieving a compound annual growth rate (CAGR) of 23.1 percent. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 10.0 percent from 2025 to 2030.
“By the end of 2030, the BNPL sector is projected to expand from its 2024 value of $1.42 billion to approximately $2.61 billion,” it said.
BNPL’s relief to consumers
A representative of Easybuy who pleaded anonymity said Easybuy helps customers purchase phones or electronics that they need – which they can’t afford to buy off at once.
“Easybuy acts as a middleman between the buyer and the seller to reach an agreement of sales. By using the application, the customer knows the amount to pay monthly. The amount with interest is usually calculated. It becomes more when the duration increases and the person can’t pay,” the representative said.
According to Uzo, earlier quoted, BNPL is a new product that affects consumer behaviour in Nigeria.
“However, some things need to be worked upon such as how they treat the customers. They should handle their customer service better and not use crude methods to collect payment,” he said.
Uzo further said that the growth in the BNPL market will be measured by the target audience, meaning that it might not be for all audiences as there will be some segmentation to find the right customers that will not default in payment.
Read also: Buy Now, Pay Later – legal structural and regulatory considerations
Customers speak
Kafilat Solomon, a fashion designer located in Iwaya part of Lagos, said she bought a phone worth N82,000 at a BNPL store with an initial deposit of N30,000, meaning she had a balance of N52,000.
“I later paid a total of N63,000 because of my default,” she said. “I paid N26,300 by instalment but was not able to meet up because of a health issue. When they reached out, I told them about my health challenge but they were not interested.”
She told the reporter that they reached out with all manner of abuse via calls and text messages. “If I have someone that wants to purchase a product using BNPL, I won’t advise it.”
Sulaimon Lateef, a POS operator on Lagos Island, said: “I could not pay for the last month because of some issues I was facing. However, I was threatened and I later misplaced the phone. I was annoyed then, so I just paid up in full,” he said.
BNPL’s rapid growth
Nigeria’s BNPL market is experiencing rapid growth, driven by increased e-commerce activity, financial inclusion initiatives and changing consumer preferences. The expansion of BNPL beyond online retail into sectors such as transportation and utilities highlights its growing role in the broader financial ecosystem.
“With projections indicating steady growth over the next few years, the market will likely see increased competition, prompting providers to diversify their offerings and enhance accessibility to a wider consumer base,” ResearchAndMarkets.com said.
Strategic partnerships
The report said collaborations such as Jumia Nigeria’s partnership with Easybuy and CredPal illustrate how BNPL firms integrate their solutions into established e-commerce platforms.
“These alliances make BNPL more accessible to consumers, increasing adoption and driving digital payment growth,” it said.
Key players such as CredPal, Easybuy, and Motito are scaling their operations, while partnerships such as Jumia Nigeria’s collaborations with BNPL providers signal a maturing sector, it noted.
Mastercard had earlier partnered with Lipa Later to expand BNPL solutions in Kenya, Rwanda, Uganda, and Nigeria, aiming to enhance financial inclusion.
As BNPL services integrate into online and offline retail, they are expected to become a mainstream credit alternative, improving financial access for consumers and small businesses.
“Over the next 2-4 years, Nigeria’s BNPL sector will continue evolving, offering more tailored financing options while contributing to the overall digital transformation of the country’s financial landscape,” the report added.
