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Nigeria E-commerce market opportunity in excess of N255bn annually 

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Medessy Enterprises Limited, owner of www.gidimall.com, says that the current market opportunity for electronic commerce in Nigeria is in excess of N255 billion annually.

According to the online retailer, e-Commerce market in the country, though nascent, is growing very rapidly at a rate of 25 percent every year.

This figure, the firm believes, is expected to change rapidly and positively as more and more customers look towards the internet to find the best deals on products and services.

Esi Evbakhavbokun, the firm’s director of operations, in a media statement, said today’s market is experiencing changing consumer behavior especially in favour of e-commerce.

“Encouraging this trend is the ever-increasing internet penetration due to cheaper data prices occasioned by massive financial investment in the telecommunications industry, massive mobile phone penetration with significant growth in the acquisition of Smartphone’s, and the Central Bank of Nigeria’s push towards a Cash-lite economy,” Evbakhavbokun added.

According to the Gidimall.com director, electronic commerce is in its nascent stage in Nigeria, further adding that there is massive market opportunity in the sector due to Nigeria’s huge population.

Nigeria is amongst the top 10 most populous nations in the world with approximately 170million residents.

This figure according to the World Bank is expected to be in excess of 264m by the end of 2050.

Transaction volumes via PoS, web, and, mobile have experienced a massive growth. While e-Commerce across the rest of the world is growing at 16.8 percent, Africa’s B2C e-Commerce space is growing at a rate of 25.8 percent – making it the fastest growing in the world.

 

3 Responses to Nigeria E-commerce market opportunity in excess of N255bn annually 

  1. There is tremendous opportunity in e-Commerce in Nigeria but it can only be achieved through the revamping of the Nigerian postal system by making sure that the existing Post Offices in Nigeria are functional and operating effectively. Upgrading NIPOST to a reasonable standard that will enhance efficient and effective delivery of customers’ goods will greatly improve e-Commerce because no system of e-Commerce operates without an efficient and workable postal system. This is because e-Commerce involves two stages of transaction which are the Import Stage (IS), and the Output Stage (OS). The IS takes place using web/internet enabled systems like computers etc, while the OS involves ‘a receiving point’ of the goods ordered. In this case for example, somebody who ordered an electronic gadget over the internet needs a place to received his/her item ordered, this reception point takes places mostly in NIPOST more than any other mail service delivery system in Nigeria. Therefore, for more customers to involve themselves in this e-Commerce they must have access to functioning NIPOST in particular without which they could be demoralized to embark on online purchases. An efficient NIPOST system will also increase customers’ confidence and as well assure them that nothing will happen to the online purchases and that their ordered items will reach them safely.
    Overhauling NIPOST can be done by making sure that all the NIPOST are in good shapes and functioning optimally through the replacement and installation of mail boxes and improvement in the conditions of work of NIPOST workers which are somehow in a deplorable state in certain locations, and ensuring that all mail deliveries to NIPOST were never tampered with by third persons, and carrying out thorough screening of NIPOST employees both before and during employment. Without an efficient and effective NIPOST system achieving the goal of e-Commerce will continue to suffer setbacks.

    Chukwuemeka Alozie
    November 13, 2013 at 9:28 pm
    Reply

  2. I do not agree with you, NIPOST is not necessary for the full attainment of e-Commerce in Nigeria, Jumia, Konga, dealdey etc have their own distribution channels which are very effective. Ministry of CommTech is working on reviving NIPOST even though not much success has been acheieved. It is left for entrepreneurs to start up logistics companies that would assist these e-Commerce start ups in delivering goods effectively.

    In the UK Royal Mail is one of the available options for delivery because it is cost effective, but more options are available such as CityLink, DPD, parcelforce,parcel2go etc, These companies assist e-Commerce platforms to deliver items effectively. Hence revival of NIPOST will merely complement e-Commerce distribution channels.

    Chuck Uzodinma
    November 16, 2013 at 7:31 am
    Reply

  3. Ecommerce is still at the infant stage in Nigeria. Huge opportunities abound both in eretailing and logistics for entrepreneurs.
    One challenge startups face is the issue of trust. Most Nigerians will rather pay in cash than with credit/debit/ATM card.
    But the acceptance is growing gradually. It’s only a matter of time before the larger population realize we are in a new era.

    Ikenna
    January 17, 2014 at 8:52 pm
    Reply

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