Nigeria’s E-commerce market to hit $7b by 2028
By Felicia Nwosu
A recent report by Mordor Intelligence has revealed that Nigeria’s E-commerce market was previously valued at USD $67million in 2022, with expectation that it will garner $7.6billon in next five years (2028) at a CAGR of 11.3% during the forecast period.
The report show that mobile devices play a crucial role in Nigeria’s e-commerce landscape, especially with the widespread adoption of smartphones, which has boosted internet inclusion and online shopping among Nigerians.
To attest to the huge growth experienced by the Nigeria E-commerce, the Nigerian Communications Commission (NCC) revealed that in November 2022, the number of 3G/4G mobile broadband subscriptions in Nigeria stood at 88.3 million.
According to the research organisation, Covid-19 remains the most instrumental player that accelerated the growth of e-commerce across the globe. It maintained that the pandemic, especially the lockdown period, significantly impacted the Nigerian e-commerce market, accelerated its growth, and transformed consumer behaviour.
Describing it as a fragmented segment of the market led by competitive players, Mordor Intelligence added that the demand for online shopping has prompted the establishment and growth of e-commerce platforms in Nigeria. Companies like Ajebomarket, and Chrisvicmall Jumia, Zikel Cosmetics, and SLOT Systems Limited have emerged as major players in the Nigerian e-commerce market, offering diverse product categories and facilitating secure transactions.
It mentioned that players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
The Nigerian e-commerce market has experienced significant growth in recent years, driven by increasing internet penetration, growing smartphone usage, and a rising middle class with disposable income.
From the available information by the platform, Nigeria has one of the largest economies in Africa, and its e-commerce market has immense potential. Citing CIA, it stated that Nigeria’s population grew by about 6.39 percent compared to the previous year, providing a substantial consumer base for e-commerce businesses to target.
The platform also noted that the rise of internet penetration has also spurred the adoption of digital payment solutions in Nigeria. Mobile payment systems, such as mobile wallets and payment apps, have made it easier for Nigerians to make online transactions. This has further fueled the growth of e-commerce, as people now have convenient and secure ways to pay for their purchases online.
It further observed that mobile devices play a crucial role in Nigeria’s e-commerce landscape,s stressing that it has leveraged this important trend and optimized their websites and applications for mobile ushers.
The data analysis pointed out that E-commerce has helped various businesses in recording remarkable shifts, affirming that the adoption of online payment modes has been a significant driver of the Nigerian e-commerce market. It added that as more Nigerians embrace digital payments, it has facilitated the growth of e-commerce by providing secure, convenient, and efficient online transactions.
The segment is also confronted with the challenges of increased cybercrime which today poses a significant restraint to the e-commerce market.
The Nigeria E-commerce Market is Segmented by B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), B2B E-commerce.
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