Nigeria

Features of betting and punters

When we talk about Betting, over 76% of all betting is on Football, where the most recognisable and popular league is the APL.

Despite the highest number of young bettors under 30 and increasing digitalisation, more than 60% of all betting in the African region still takes place at offline outlets.

This shows one thing: the African market is about diversification and playing for the long haul, not quick profits.

If you are planning to enter the African market, here is what you need to be prepared for:

• Focus needs to be on outdated technology and devices.
• High risk of website and payment processor failures.
• The average spend for bettors is $5 per month. Low stakes, but in huge volumes
• The average age of an African resident is 20 years old. This should be taken into account in all aspects of operation.

Mentality

The republic is home to about 400 African tribes. 80% of Nigerians are represented by the ten most influential tribes. The official language is English, among local languages there are Hausa, Ibo (Igbo), Yoruba.

Here they believe in the cult of ancestors, witchcraft, black and white magic. Respect for elders is a fundamental principle in the country. Not only those who are older, but also those who, for example, have education, are considered elders.

Most Nigerians tend to be idle. Therefore, their free time is spent on sports (both playing and watching various sporting events in sports bars common in the country) and gambling.

Forecasts

1. At the moment, there is a clear dominance of online betting compared to online casinos. However, the slots part is gaining momentum every year and IGB predicts that Nigeria could become the largest slots market in Africa
2. GGR online casino forecast for 2025: around 300-350 million USD
3. Meanwhile, according to iGaming Research, revenue from the entire gambling market is projected to be around 700 million USD in 2025.

Risks

• Nigeria is far from having the best internet. Yes, the coverage is getting better every year, but it is still a long way from the level of the top countries in the iGaming industry. This can have a negative impact on players' session duration and, as a consequence, ARPU.
• Orientation to mobile devices. The majority (about 85%) of players place bets from mobile devices.
• Low ARPU. On a daily basis, Nigerians place about 18 million bets. However, the bet size is usually minimal, as is the deposit size of about $2.
• Local licence. Nigeria is far from having the strictest regulation, but having a local licence gives players more confidence in the project.

The iGaming market environment

In October 2024, the Nigerian government proposed a 5% excise tax on any telecoms and gambling related transactions. The bill is expected to come into effect in 2025 if approved by the National Assembly.

The initiative is prompted by the economic hardship and high unemployment rate facing the country. By the way, against this backdrop, Nigerians are actively participating in iGaming, expecting to win large sums of money quickly.

In addition to this, gambling operators have been instructed to set up separate wallets for customer winnings to ensure that players have immediate access to their funds. New fees for gambling licences are also being introduced: the cost of a licence for casinos is $59k and for bookmakers $44k.

It is known that in Nigeria more than 60 million people are involved in betting (population is over 230 million), with 9% of them betting every day. Currently, the industry brings in between $308m and $370m annually.

Lagos State (the largest city in Nigeria) accounts for a significant part of this revenue: in 2023 alone it totalled $243 million. It is predicted that by 2025 the GGR of the iGaming market in Nigeria will reach $717.2 million.