Nigeria’s e-commerce sector is accelerating at an unprecedented pace, with projections showing the market could exceed 16 billion dollars by 2030. Analysts attribute this rise to improved internet access, widespread smartphone usage, and growing confidence in digital payments and last-mile logistics.

Recent performance indicators support the optimism. According to Investing.com, Jumia Technologies reported a 25 percent year-on-year revenue increase in Q2, reaching 45.6 million dollars. Gross profit also rose by 4 percent, aided by a leaner cost structure and a shift toward higher-quality sales. The platform recorded a 26 percent jump in gross merchandise value and a 34 percent increase in orders, suggesting renewed consumer appetite and stronger vendor participation.

Nigeria, Jumia’s largest and most competitive market, delivered the strongest numbers. The company reported 43 percent growth in its core e-commerce operations, driven by improved logistics efficiency and a gradual rebound in household spending. Jumia continues to describe Nigeria as the market with “the biggest upside,” reflecting the country’s population size and its increasingly mobile-first consumers.

Industry experts say this momentum is also linked to the visibility e-commerce platforms now offer small and medium enterprises. Many vendors are gaining access to digital storefronts, financing options, and new tools to scale, making online retail a central pillar of Nigeria’s emerging digital economy.

Jumia CEO Francis Dufay said the company had reached an important transition point. He noted that its cost-cutting measures and operational efficiency drive are now delivering clear results. One of the company’s biggest bets is its retail advertising platform, launched in Q2. Dufay described it as a high-margin revenue opportunity that will play a meaningful role in the company’s road to profitability.

He explained that advertising demand increases with marketplace scale, and vendors are willing to invest more in performance placements as competition intensifies. Fulfillment costs per order fell 22 percent to 1.86 dollars, and technology expenses dropped 10 percent year-on-year despite higher order volumes. These improvements show the company is successfully optimising fixed costs while expanding service capacity.

Although Jumia has not yet reached profitability, Dufay said the business is moving steadily in that direction. Management remains confident about breaking even by the fourth quarter of 2026 and achieving profitability in 2027, supported by a stabilising macroeconomic environment and continued operational discipline.

“A lot of people did not believe this company could scale without damaging its economics,” Dufay said. “This quarter proves that we can. We have a clear plan, and it is realistic.”

With competition increasing from both local players and global platforms, analysts agree that the next phase of Nigeria’s e-commerce race will be defined by efficiency, scale, and the ability to turn digital traffic into sustainable revenue.