Nigeria e-commerce projected at $9.02bn in 2023
By Oghale Mafuru
Latest industry report has revealed that the e-commerce sector of the Nigerian economy is expected to peak at $9.02bn in 2023 with an annual growth rate of 11.74 percent, resulting in a projected market volume of $14.06bn by 2027.
According to Statista, a research agency, the number of users in the E-commerce market is expected to amount to 143.9m users by 2027 while user penetration will be 45.6 percent in 2023, and expected to hit 58.7 percent by 2027.
It adds that the average revenue per user (ARPU) is expected to amount to US$89.02.
Nigeria is the 38th largest market for E-commerce with revenue of US$7.6 billion in 2021, placing it ahead of Pakistan and behind Finland. Nigeria is even expected to outperform the global average of 10 percent, having a yearly growth rate of 12 percent between 2021 and 2025.
The Nigerian e-commerce market was reported to have contributed to the worldwide growth rate of 18 percent in 2021 with an increase of 44 percent.
According to ecommerce DB, another research agency, the biggest player in the Nigerian e-commerce market is jumia.com.ng. which recorded a total revenue of US$22 million in 2021. This was closely followed by slot.ng and ajebomarket.com as the second- and third-largest stores with US$7 million and US$6 million, respectively. However, the top three stores accounted for 0% of online revenue in Nigeria.
Just like in Nigeria, global E-commerce sales are expected to witness an upsurge over the next few years as new markets are emerging.
Comparing the three major e-commerce markets, the U.S., China and Europe – China was the biggest market in 2022 and will stay in the lead through 2027.
The Chinese market is worth US$1,156.3 billion in 2022, with Electronics being the biggest segment. Revenues are expected to grow at a Compound Annual Growth Rate, CAGR of 7.4 percent up to 2027, resulting in revenues of US$1,649.4 billion.
The Chinese market is expected to show the largest growth rates of the three major regions. In the U.S. market, revenues of US$904.9 billion were generated in 2022. Judging from the CAGR of 13.5 percent, the market is expected to exceed revenues of US$1702.9 billion by 2027.
The third biggest eCommerce market in 2022 is Europe with revenues of 662.5 billion. An annual growth of 14.5 percent will lead to revenues of US$1304.13 billion by 2027.
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