By Kazeem Adeleke and Okechukwu Okechukwu
Digital payment channels now account for 43 per cent of fuel transactions in Nigeria, signalling a major shift away from cash in the country’s downstream oil and gas sector, according to a new case study released by financial services platform, Moniepoint.
The report, titled “Fuelling the Nation: How Moniepoint Powers Nigeria’s Oil and Gas Industry,” analyses payment systems, access to credit, and inventory management practices among petrol station operators nationwide. It found that point-of-sale (POS) terminals have become standard infrastructure across the sector, with 90.9 per cent of stations relying on them for daily operations.
Petrol stations play a vital role in Nigeria’s energy and transportation ecosystem, particularly in areas with limited access to alternative energy sources. With more than 90 per cent of passenger and freight movement dependent on road transport, stations collectively dispense an estimated 41 to 47 million litres of petrol daily, the report stated.
Despite their strategic importance, operators continue to face structural financial challenges. A major concern is the “T+1” settlement cycle, under which funds from card transactions are credited only on the next business day. In an industry characterised by thin profit margins and the need for rapid restocking, this delay often results in fuel shortages—commonly referred to as “dead tanks”—and lost revenue.
Moniepoint said its same-day settlement solution is helping to close this liquidity gap by enabling station owners to access funds immediately, pay suppliers promptly, and maintain consistent fuel availability. The study further revealed that one in three station owners identified access to credit as their most pressing recurring challenge.
The company disclosed that it has disbursed millions of naira in working capital to fuel retailers, achieving a 99.81 per cent repayment success rate. These interventions have helped nearly three in five petrol stations transition from cash-dependent, manually operated businesses to digitally enabled enterprises with access to modern payment infrastructure and growth capital.
Commenting on the findings, the Managing Director of Moniepoint Microfinance Bank, Babatunde Olofin, said the report was designed to deepen policy engagement and provide data-driven insights to support Nigeria’s socio-economic development.
“We are pleased to release this comprehensive report on Nigeria’s downstream sector,” Olofin said. “By leveraging transaction data and management tools, petrol stations can plan inventory more effectively, anticipate restocking needs, and ensure smoother operations to better serve customers.”
He added that expanding access to financial tools for fuel retailers would strengthen fuel distribution networks and support a more efficient and equitable energy system.
The downstream oil and gas case study follows earlier Moniepoint reports on family-owned businesses, open markets, community pharmacies, women-led enterprises, and agriculture in the North-East. Collectively, the studies examine how digital payments and financial services are reshaping Nigeria’s informal and formal economies.
Moniepoint processes billions of naira in transactions monthly and provides payments, banking, credit, and business management solutions to millions of businesses across Nigeria, reinforcing its position as a key driver of financial inclusion and operational efficiency.
