Summary

The Nigeria e-commerce market is expected to register a CAGR of 12.24% during the period 2022-2027. The market is primarily driven by advanced infrastructure, high internet penetration, and a growing number of card-based payment systems.

Key Highlights
Nigeria's economy is moving toward cashless transactions, with digital payment and electronic banking being adopted in stages across the country. Many transactions can now be completed electronically using a variety of new digital financial services platforms.
With a 30 percent increase in 2021, the Nigerian eCommerce market contributed to the global growth rate of 29 percent. The development of electronic payments in Nigeria encourages payment service providers to enter the industry, which sees Nigeria as a viable market. Nigerian visitors increasingly use debit cards from local banks such as Citibank, Zenith, UBA, and Fidelity to make payments abroad in nations such as the United Kingdom, Germany, South Africa, and the United States.
The rise in fraudulent online activities, sometimes known as cybercrime, is one of, if not the most, significant constraints facing Nigerian online purchasing industries. Cybercrime is defined as any criminal conduct carried out over the internet to defraud individuals of their property. People's e-wallets have been stolen, and phone numbers have been used for advertising illegal services, among other things.
The importance of excellent logistics in any business or industry cannot be overstated. Logistics is critical for creating visibility in the e-commerce supply chain and determining overall consumer satisfaction, efficiency, and service delivery. However, it is worth noting that it necessitates a great deal of skill and a complex network of multiple small systems.
Consumers stayed at home for a long time during the COVID-19 Pandemic due to movement limitations, which resulted in various behavioral modifications in the name of following rules and avoiding infection. These changes are primarily due to the product they purchased and the manner in which they bought it. At this time, consumers primarily purchased their basic and essential requirements through online shopping.


Key Market Trends

Penetration of Internet and Rise in online payments


The internet landscape in Nigeria is thriving, it has one of Africa's most developed internet economies. Nigeria has the continent's largest population and one of the world's youngest. Nigeria boasts some of Africa's strongest network coverage and mobile communication infrastructure. The percentage of people who use the internet is currently above 70%, and it is expected to continue to rise.
According to various statistics, the number of smartphone users in Nigeria ranges between 25 and 40 million. Mobile devices are utilized to access the internet far more frequently than desktop computers. In 2019, mobile devices accounted for over 70% of internet access, with this percentage considerably greater when it comes to online marketplace visits.
According to the National Communication Commission (NCC), the majority of internet users are shoppers, and mobile network coverage is currently estimated at 77%. In Nigeria, 89 percent of internet users purchase online, with another 24 percent planning to do so in the near future.
To fully realize its digital potential and create millions of jobs, the government must continue to invest in infrastructure, enhance skills, and execute investment possibilities, among other things. Furthermore, the poor adoption of online payments in Nigeria, as well as the rest of Africa, may have an impact on digital commerce.


Competitive Landscape

Nigeria E-commerce market is moderately fragmented in nature. Key major players include Zikel Cosmetics, Soso games, SLOT Systems Limited, and Jumia International. These major players actively participate in partnerships and product innovations to gain more market share in the region.


April 2022 - Pan-African e-commerce platform Jumia has inked an exclusive partnership with franchise Domino’s Pizza to reach more consumers. Both Jumia and Domino’s anticipate significant growth in business as well as build convenience for consumers.
April 2022 - Rabat - 4PX, a Chinese logistics firm, has struck a partnership deal with Africa’s leading e-commerce platform Jumia to expand their joint pool of customers on the African continent. The two logistics companies plan to start operations in Nigeria before expanding to Kenya, Egypt, and Morocco, under the new partnership.


Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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