What is the future of ecommerce in Nigeria, how will the internet revolutionalise how people shop.
What is the future of ecommerce in Nigeria, how will the internet revolutionalise how people do business. With current social media and technological changes and foreign direct investments in the country, there is clearly huge potential. It is important to understand how people will embrace this new way of shopping , not just in Nigeria , but around the Africa continent.
There are plenty of exciting things happening in Nigeria right now. The economy has recovered significantly since the oil price crash and recession of 2015. Nigeria is Africa's largest economy and is still emerging as an economic powerhouse, which helps to explain the current government spending and infrastructure plan. Wealth has also been brought to the country by foreign direct investments in the form of US dollars and other foreign currencies. We have seen huge progress in the country's railway network in recent years, as well as significant infrastructure improvement across the country. As a result of these developments, the ecommerce market is set to expand further, especially in the Nigerian sector. In the report, this market has been described as a '$38.7bn market'.
“Connecting human needs and online purchase is a win-win situation” – Linkedin article.
People around the globe are making money from the internet; with more and more people becoming more comfortable with online shopping, there is bound to be a rapid adoption of ecommerce in Africa. There are still hurdles to overcome such as finding a balance between affordability, convenience and security, which will encourage people to buy online. “B2C Ecommerce in Nigeria: A Snapshot” – Forbes article Although Nigeria has a bright economic future, with a lot of innovation and advancements in the country, there is still a lot of work to be done before ecommerce becomes mainstream. For one, the internet penetration rate is still low in Nigeria which might have a major impact on the uptake of ecommerce.
In Nigeria, there has been a shift in attitudes from using cash to internet spending, with ecommerce growing as a percentage of total retail spend. With consumers open to using other methods of payment to shop online, this represents a huge opportunity for internet retailing in Nigeria. Where are we at in Nigeria with regards to ecommerce? Nigeria has one of the most sophisticated websites in Africa. It has also been described as the biggest internet market in Africa. With the country’s first mobile payment solution, and with much of the country’s population connected via mobile phones, internet retailing is clearly the way of the future. Where will the internet revolutionalise?
Ecommerce has become so ubiquitous in Nigeria that it is starting to drive economic growth and is being considered as a key channel for retail growth. New players, services and technologies are arising and will likely lead to further evolution of the sector in Nigeria. Furthermore, large-scale and sustainable disruption is on the horizon. About the author: Tom Kearney is a co-founder of PartnerAfrica , one of the world’s leading PR companies specialising in Western African markets. He is also a contributing editor for the online African Business Magazine.