Dublin, March 06, 2025 (GLOBE NEWSWIRE) — The “Nigeria Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The gift card market in Nigeria is expected to grow by 12.8% on annual basis to reach US$2.34 billion in 2025. The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 14.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 11.3% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 2.08 billion to approximately USD 3.59 billion.
With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics. It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The Nigerian gift card market is undergoing rapid transformation, fueled by the increasing adoption of digital transactions, the rise of reselling platforms, and the integration of gift cards into corporate reward programs. Retailers are expanding their offerings to cater to consumers’ evolving needs, while secondary markets provide opportunities for users to trade and maximize the value of unused gift cards. These shifts are contributing to the steady growth of the market, making gift cards a mainstream payment and gifting option.
Over the next 2-4 years, the market is expected to continue its upward trajectory, with projections indicating substantial expansion. As corporate adoption increases and regulatory oversight evolves, businesses will need to navigate compliance while leveraging new opportunities for engagement. Companies that embrace technological innovations and strategic partnerships will be well-positioned to capitalize on the growing demand, ensuring long-term sustainability in Nigeria’s expanding gift card industry.
Competitive Landscape of the Nigeria Gift Card Market
Nigeria’s gift card market is expanding rapidly, driven by increased digital adoption, retailer integration, and consumer demand for flexible payment solutions. As new entrants and established players compete for market share, innovation in fraud prevention, platform security, and seamless digital transactions will be key differentiators. Regulatory developments will be crucial in shaping the market’s future, requiring businesses to balance compliance with maintaining user-friendly services. Companies that leverage technology, build strong partnerships, and prioritize security will be well-positioned to lead in Nigeria’s evolving gift card ecosystem.
Current Market Dynamics
- The Nigerian gift card market is witnessing significant growth, supported by increased digital adoption and evolving consumer preferences. E-commerce, digital payment solutions, and the increasing use of gift cards for financial transactions and remittances primarily drive this growth.
- Consumers in Nigeria are leveraging gift cards not only for gifting but also as a payment alternative amid foreign exchange restrictions and limited access to international banking services. The demand for multi-brand and digital gift cards is growing, as they provide flexibility for users and businesses. The market is expected to expand as more retailers and fintech platforms integrate gift cards into their payment ecosystems.
Key Players and Market Share
- Nigeria’s gift card market is dominated by key players such as JumiaPay, KongaPay, Patricia, and Cardtonic, which offer various local and international gift card services. These platforms provide consumers with seamless digital transactions, allowing them to buy, sell, and trade gift cards efficiently. The growing demand for gift cards as alternative payment solutions has driven these platforms to enhance their services and user experiences.
- New entrants, especially fintech startups, are reshaping the market by introducing innovative features such as better exchange rates, faster transactions, and expanded payment options. Platforms such as Paxful and Prestmit have expanded their offerings to attract more users by providing competitive pricing and supporting a broader range of gift cards. As competition intensifies, companies are expected to further differentiate their services by improving security, user convenience, and liquidity in the resale market.
Recent Launches and Partnerships
- The Nigerian gift card market has witnessed strategic collaborations to improve service offerings and expand the market. JumiaPay has strengthened partnerships with multiple retail brands to integrate gift cards into its payment solutions, making digital gift cards more accessible.
- While no major acquisitions have been reported in the last year, the global trend of fintech and payment platforms consolidating their offerings suggests potential future mergers. As competition intensifies, larger companies may acquire smaller platforms specializing in gift card reselling and trading to enhance their market reach.
Expansion of Retailer Gift Card Offerings
- Nigerian retailers are expanding their gift card offerings to cater to the growing demand for flexible payment and gifting solutions. E-commerce platforms such as Jumia and Konga have enhanced their gift card selections, offering customers options to purchase and redeem gift cards for various brands. This shift aligns with consumer preferences for digital transactions and easy-to-use gifting alternatives.
- The rise of e-commerce and digital payments has played a key role in driving this trend, as more Nigerians embrace online shopping and cashless transactions. Gift cards offer a seamless payment option that benefits retailers and consumers by providing convenience and eliminating the need for immediate cash payments. Additionally, Nigerian consumers’ demand for choice and flexibility has encouraged retailers to diversify their gift card portfolios.
- Retailers that continue to invest in gift card solutions are likely to experience increased customer engagement and loyalty. As digital adoption accelerates, businesses integrating gift cards into their payment and loyalty strategies will gain a competitive advantage in Nigeria’s evolving retail landscape.
Emergence of Gift Card Reselling Platforms
- Gift card reselling platforms are gaining traction in Nigeria, allowing consumers to exchange, sell, or buy gift cards at competitive rates. These platforms provide a solution for individuals with unused or partially used gift cards, converting them into cash or other forms of value. The growing presence of such platforms reflects the increasing demand for alternative financial solutions in the Nigerian digital economy.
- The surge in demand for the secondary gift card market is driven by consumers looking to monetize their unused gift cards or acquire them at discounted rates. Additionally, the rise of digital payment adoption in Nigeria has facilitated secure and seamless transactions for gift card exchanges. As fintech adoption increases, these platforms are expected to be more prominent in Nigeria’s broader financial ecosystem.
- Over the next 2-4 years, the expansion of reselling platforms will likely increase overall market activity by enhancing the liquidity and utility of gift cards. However, as the secondary market grows, regulatory scrutiny may intensify to protect consumers from fraud and ensure compliance with financial regulations. Businesses operating in this space must implement stronger security measures and transparency to maintain consumer trust.
Corporate Adoption of Gift Cards
- Nigerian businesses are increasingly adopting gift cards as a strategic tool for employee rewards, customer incentives, and marketing campaigns. Companies recognize that gift cards offer a flexible and convenient way to engage employees while allowing customers to redeem them for products or services of their choice. This trend is particularly evident in corporate sectors such as banking, telecommunications, and retail, where gift cards effectively enhance engagement.
- The growing corporate adoption of gift cards is driven by two key factors: the need for employee recognition and evolving marketing strategies. Businesses use gift cards as an alternative to traditional employee rewards, providing a customizable and widely accepted incentive. Additionally, companies leverage gift cards in promotions to attract new customers and enhance customer retention, boosting brand loyalty and sales.
- Over the next 2-4 years, corporate demand for gift cards is expected to drive market expansion, with more businesses integrating them into their incentive programs. This growth may lead to increased innovation in the gift card sector, with tailored solutions designed specifically for corporate clients. As competition rises, businesses may introduce more personalized and industry-specific gift card offerings to maintain relevance in the evolving Nigerian market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 325 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $2.34 Billion |
| Forecasted Market Value (USD) by 2029 | $3.59 Billion |
| Compound Annual Growth Rate | 11.3% |
| Regions Covered | Nigeria |
For more information about this report visit https://www.researchandmarkets.com/r/tdgrf0
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- Nigerian Gift Card and Incentive Card Market
