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Travel & Leisure has a high proportion of top 30% companies by profitability, however there are a relatively low number of total customers in this industry vertical.
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However profitability can be heavily influenced by lending income, and doesn’t give a true reflection from a collections point of view.Stripping out lending, we can We can see the size of industries from a collections standpoint below. The greatest volume of payments today is led by the same four categories, with the addition of IT/Electronics.
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This is by a distance the largest in sub-saharan Africa, accounting for 35% of the total volume.
External data- deposits
Number of depositors by vertical:
Top 100 by size of deposit | 100-200 by size of deposit | 200-300 by size of deposit | |
Conglomerate | 4 | 2 | 2 |
Oil & gas | 25 | 20 | 13 |
Public sector | 16 | 9 | 9 |
Construction | 9 | 15 | 8 |
Financial services | 28 | 13 | 11 |
Manufacturing | 3 | 8 | 10 |
Food & Beverage | 5 | 8 | 7 |
Individuals | 1 | 2 | 5 |
Infrastructure | 4 | 2 | 4 |
Consumer goods | 4 | 3 | 4 |
Other | 1 | 3 | 4 |
Consulting | 2 | 1 | |
Charities | 8 | 3 | |
Technology & Comms | 1 | 6 | |
Logistics | 1 | 5 | |
Medical | 1 | 2 | |
Services | 3 |
Oil & gas, and financial services dominate depositors in the top 100.
Moniepoint’s natural focus will be more towards the mid-size corporates. Manufacturing, consumer goods, technology & communications and logistics are relevant verticals in this size range.
Type of deposit:
Type of deposit | % growth in 2024 YTD (in NGN terms) |
|---|---|
Demand | 15.0% |
Savings | 29.2% |
Call | 1.5% |
Term | 17.2% |
Foreign currency | 86.8% |
Foreign currency deposits (the overwhelming majority denominated in USD) have seen a huge surge in growth due to Naira devaluation- for the first time foreign currency deposits now make up more than Naira deposits.
To be appealing to many corporate and high net worth individual customers, the data makes it clear that Moniepoint will need to have a strong USD deposits offering.
External data- lending
Sector | % of total loan book |
|---|---|
Oil & gas | 25.1% |
Manufacturing | 19.3% |
General | 18.4% |
Government | 8.7% |
General commerce | 7.0% |
Construction | 6.1% |
Financial services | 3.7% |
Information & communication | 2.8% |
Agriculture | 2.6% |
Data-driven prioritisation
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Industry | NGN collections | Top30 ** accounts % | Industry size | Industry growth (real) | Exports | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Top 3 focus verticals | |||||||||||
Retail & General Trade | 798m (1st) | 38% | N27.4tn | 1.7% | - | ||||||
Remittances distribution | - | - | N31.9tn | -2.9% | $19.5bn | ||||||
Manufacturers | |||||||||||
Oil & Gas | 166m (3rd) | 45% | Downstream & midstream unknown | Downstream & midstream unknown | Downstream & midstream N/A | ||||||
- | - | N36.0tn | - | - | |||||||
From retail & general trade, expand up the supply chain into these industries | |||||||||||
Food & Drinks | 401m (2nd) | 34% | N13.9tn* | 3.0% | $0.9bn | ||||||
IT Oil & ElectronicsGas | 121m 166m (4th3rd) | 26%45% | N25N13.5tn1tn | 8-35.9%8% | $0$61.1bn | ||||||
Healthcare | 66m (9th) | 29% | N1.0tn* | 6.4% | - | ||||||
Separate, later focuses | |||||||||||
Construction | 56m (10th) | 18% | N22.0tn | 3.6% | $0.1bn (construction materials) | Travel & Leisure | 74m (8th) | 37% | N4.9tn | -15.0% (4.0% if exclude road travel) | - |
*this number is for manufacturing only. Moniepoint data includes distributors and retailers, so industry number for comparison is likely higher
**by profitability
Rationale for top 3 prioritisation choices
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Retail & general trade is a broad industry category, and allows focus on servicing distributors in sub-sectors. Suggestions:
IT & Electronics
Supermarkets
Pharmacies
Restaurants
Each of these allow subsequent expansion upwards into the manufacturing supply chain for these industries.
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If inbound remittances were considered as an industry in their own right, they would be the second largest in Nigeria today after crop production.
Whilst this is not to be built within the commercial bank, it is a key part of the strategy.
Moniepoint, through their existing infrastructure to instantly settle payments across the whole of Nigeria, have a natural competitive advantage. Servicing our own retail offering and providing rails to existing remittance companies such as Wise, Remitly and World Remit will provide penetration into a market contributing $19.5bn of USD flow annually.
This will allow Moniepoint to create USD denominated deposits products that have a competitive advantage relative to others in the domestic Nigerian market.
Oil & Gas
Oil & Gas distribution is the third largest by number of transactions for Moniepoint today, and is the industry with the largest percentage of profitable accounts.This is crucial for competitive offerings in the market today.
Manufacturing
Moniepoint has good penetration, can build a market-leading ERP solution solving real pain points, and work our way up into midstream and upstream which is the 6th largest industry in Nigeriaand down deeper into industry verticals.
Agriculture is the largest industry in Nigeria- why is it not included?
Most of agriculture is subsistence. Only an estimated 5% of agriculture is mechanised industry. In addition, only 15% of current Moniepoint merchants are top 30% by profitability.
Summary- prioritisation
Retail & general trade
Supermarkets
Pharmacies
Restaurants
Fuel stations (to eventually expand to midstream and upstream)
Remittances distribution
Manufacturing