The Growth of E-Commerce in Nigeria

According to management consultancy McKinsey, e-commerce is expected to become big business in Africa, with the continent on track to generate yearly sales of $75bn by 2025.

E-Commerce is rapidly growing and creating amazing and exciting new opportunities in Nigeria, and is connecting the country with the rest of the world on a new scale.

This growth has seen economical, social, and cultural opportunities for businesses, individuals and organisations. It is allowing ease of connection, and Nigerians have embraced it and are using it to the fullest.

Around 60 million Nigerians now have easy access to the internet, and this number keeps growing. In turn, the opportunities this access presents are also growing, and with Nigeria having a very young and innovative population, its tech world will only continue to expand.

E-Commerce growth is making room for innovative creations which leads to healthy competition and more opportunities for individuals to increase their knowledge span.

The growth of ecommerce has seen an increase in competition amongst businesses.

About 300,000 online orders are made every 24 hours in Nigeria, and as online businesses continue to grow, their competitiveness will ensure resilience and lead to innovations that can only be great for Nigeria as a nation and for the economy.

Nigeria’s Minister of Communications Technology, Dr. Omobola Johnson, said that Nigeria’s e-commerce market has a potential worth of $10 billion, and has attracted about $200 million foreign investment.

Nigeria’s fledgling e-commerce sector continues to take major strides forward year on year, creating numerous job opportunities for millions of Nigerians and injecting life into an already burgeoning entrepreneurial culture.

For the opportunities presented by this sector to be fully realised, there are some key challenges that need to be addressed. One such challenge is that presented by cybercrime. More work needs to be done by the government to better safeguard consumers and businesses alike. Cybercrime is obviously an international issue that is not exclusive to Nigeria, but a heightened focus on security infrastructure from the State, as well as companies, along with improved buyer protection policies, laws, and legislation, should go some way towards helping to negate the issue.

Another major challenge is the extremely unreliable electrical resources. This has been and still is, a major problem in Nigeria. As long as the poor management of power continues to be an issue, many of the industries within the country will fail to realise their full potential. Nigeria’s transport infrastructure, also presents a challenge for companies, with regards to order fulfillment.

The key challenges faced by e-commerce companies in Nigeria centre around the country’s infrastructure, and as the country strives for more transparent and effective public-private partnerships, a more secure and robust platform for e-commerce growth will emerge, ensuring Nigerian entrepreneurs are on an even playing field with countries like Japan, China, India, and the United States.

With a population well in excess of 170 million, the potential for e-commerce in Nigeria is huge. If the government and companies alike are to face the challenges head-on, it can only benefit the nation.