Report Overview

Deepening penetration of smartphone usage and mobile internet, rapid urbanization, busy lifestyles, tech-savvy youth, online payments, surging demand for fast food, and AI-driven delivery platforms are expected to boost the growth of Nigeria Online Food Delivery Market during the forecast period between 2025 and 2031.

Nigeria Online Food Delivery Market – Industry Trends & Forecast Report, 2031

Nigeria Online Food Delivery Market size was estimated at USD 921.80 million in 2024. During the forecast period from 2025 to 2031, Nigeria Online Food Delivery Market size is projected to grow at a CAGR of 10.88%, reaching a value of USD 1,898.97 million by 2031. The growth of Nigeria Online Food Delivery Market is driven by rising smartphone and internet penetration, urbanization, and busy lifestyles that favor convenience. Increasing demand for ready-to-eat meals, growing youth population, and tech-savvy consumers boost adoption. Integration of AI, IoT, and big data enhances user experience, while online payment systems simplify transactions. COVID-19 accelerated digital ordering habits, and expanding delivery infrastructure supports growth. Additionally, competitive pricing, promotional offers, and diverse cuisine options attract a broader customer base.

Online Food Delivery – Overview

Online food delivery is a digital service that enables consumers to order meals from restaurants or cloud kitchens via mobile apps or websites. It offers convenience, variety, and time-saving benefits, especially in urban areas. The market is driven by rising smartphone penetration, changing lifestyles, and demand for ready-to-eat options. Platforms use AI, real-time tracking, and digital payments to enhance user experience. This industry continues to grow globally, reshaping how people access food and interact with dining services.

Nigeria Online Food Delivery Market 

Growth Drivers

Increasing Smartphone Usage and Internet Penetration

The rapid rise in smartphone ownership and internet access across the country has significantly boosted the growth of Nigeria Online Food Delivery Market. As mobile connectivity expands into urban and semi-urban areas, more consumers are embracing app-based ordering for convenience and speed. This digital shift enables platforms to reach a broader audience, especially tech-savvy youth. Enhanced network coverage and affordable data plans further support growth, making online food delivery a mainstream choice for everyday meals and dining experiences.

Challenges

Poor Road Infrastructure and Traffic Congestion

Nigeria Online Food Delivery Market faces significant setbacks due to inadequate road networks and chronic traffic congestion, especially in urban hubs like Lagos and Abuja. These conditions delay deliveries, increase vehicle maintenance costs, and reduce customer satisfaction. Potholes, poorly maintained roads, and unpredictable traffic patterns hinder efficiency and reliability. Delivery platforms struggle to meet demand promptly, impacting profitability and scalability. Addressing these infrastructural challenges is crucial for sustaining growth and improving last-mile logistics performance.

Impact of Escalating Geopolitical Tensions on Nigeria Online Food Delivery Market 

Escalating geopolitical tensions can disrupt Nigeria Online Food Delivery Market by affecting trade routes, increasing import costs, and straining supply chains. These pressures may lead to higher food prices, reduced profit margins, and limited access to key ingredients. Political instability can dampen consumer confidence and spending, while regulatory shifts may hinder platform operations. Additionally, tensions may complicate international partnerships and investment, slowing innovation and expansion efforts across the sector.

Nigeria Online Food Delivery Market 

Segmental Coverage

Nigeria Online Food Delivery Market – By Platform

Based on platform, Nigeria Online Food Delivery Market is divided into Mobile Applications and Websites segments. The mobile applications segment represents the largest platform in Nigeria Online Food Delivery Market. The dominance is driven by widespread smartphone adoption and user preference for app-based convenience. Consumers favour mobile apps for their intuitive interfaces, real-time tracking, and personalized recommendations. With increasing internet penetration and tech-savvy youth, mobile platforms dominate food ordering behaviour. Restaurants and delivery services prioritize mobile integration to reach broader audiences, enhance customer engagement, and streamline operations. This segment continues to grow rapidly, shaping the future of digital food commerce in Nigeria,

Nigeria Online Food Delivery Market – By Business Model

Nigeria Online Food Delivery Market by business model is divided into Order-focused Food Delivery System, Logistics-based Food Delivery System, and Full-Service Food Delivery System segments. The order-focused food delivery system segment is the largest in Nigeria Online Food Delivery Market, accounting for the highest market share. This model connects customers directly with restaurants, allowing them to place orders without relying on platform-managed logistics. Its popularity stems from lower operational costs, faster service, and broader restaurant participation. As internet access and mobile usage grow, this segment continues to thrive, offering convenience and variety while enabling restaurants to maintain control over delivery operations.

Nigeria Online Food Delivery Market – By Payment Mode

On the basis of payment mode, Nigeria Online Food Delivery Market is divided into Online and Cash on Delivery segments. Online payment segment is the largest, driven by increasing smartphone usage and digital financial inclusion. Consumers prefer online transactions for their speed, convenience, and security. The rise of fintech platforms and mobile wallets has made digital payments more accessible, especially among urban youth. Restaurants and delivery services also favour online payments to streamline operations and reduce cash handling risks. This segment continues to expand as trust in digital systems grows across the country.

Competitive Landscape

Major companies operating in Nigeria Online Food Delivery Market include AreaChops, Chopnownow, Foodie Nigeria, Foodstantly, Gingerbox, GoFood (AT&A Retail Limited), Jumia Foods, NaijaEats, Ofood (Opay), MyFood.ng, and Ezzy Eats. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Platform

• Mobile Applications

• Websites  

By Business Model

• Order-focused Food Delivery System

• Logistics-based Food Delivery System

• Full-Service Food Delivery System

By Payment Mode

• Online

• Cash on Delivery