Nigeria’s e-commerce Sector Searches for new Strenghts

ndeed, Nigeria’s Information and Communications Technology (ICT) is currently finding strength in eCommerce, a sub-sector estimated to worth N3.06t ($10b), according to market observers.

While e-Commerce continues to grow, the same is seen with the rest of Africa and most part of the world. More and more Nigerians are embracing the online shopping system as their preferred platform for buying and selling goods and services.

Online platforms such as Jumia, Konga, Dealdey, Yudala, Payporte, Vconnect, Kara, Fashpa, Gloo.ng; OLX; Wakanow, among others have pushed the frontiers for Internet businesses in the country, getting about 400,000 online orders every 24 hours in Nigeria.
eCommerce has become a thriving global industry. A recent report released by the Oxford Business Group revealed that retail sales hit a whopping $22b figure globally in 2016, with online shopping figures accounting for a major part of this outlay. In advanced climes where access to the Internet and of course, literacy levels stand at appreciable levels, eCommerce has become a lifestyle for many.

Interestingly, global retail sales, of which eCommerce makes up a major part, is projected to rise further to an estimated $27t by 2020. Chief Executive Officer of Konga, Shola Adekoya, said the platform kicked off 2017 with a multi-million dollar investment from Naspers and Kinnevik, and it gave reason to reflect on the progress of both Konga, and the wider eCommerce industry in Nigeria.

Adekoya said Nigeria boasts the largest population in Africa, which is set to increase from 180 million today to 440 million by 2050, with GDP expected to grow between 4.5 and nine per cent each year in between. He stressed that with larger percentage of Nigerians now connected to the Internet – a figure that’s on the rise fueled by a growing middle class, eCommerce industry clearly has potential.

He however, said reaping these online rewards isn’t straightforward. According to him, to encourage Nigerians to make more online transactions, the ecommerce industry must find innovative solutions to the table of online sales, such as fast and easy payments and refunds, and trouble-free deliveries and returns. “Perhaps, it’s the passion and commitment involved in bringing Nigeria’s strong trading culture online that makes our country an attractive proposition for investors.

Guardian