As more Nigerians patronize online retail platforms following the Central Bank of Nigeria (CBN) cash-lite agenda and the Federal Government of Nigeria’s national broadband policy 2013-2018, the Nigerian electronic commerce sector is expected to expand further to as much as $13 billion (N2.5 trillion) in value.
According to the National broadband policy 2013-2018, 80% of the Nigerian population is projected to enjoy mobile broadband access and 20% fixed line access. The CBN’s cashless policy began nationwide on July 1, last year. Prior to the commencement of the policy in 2012, the sector recorded 1,000 orders per day, with market size standing at $35 million (N5.6 billion). These figures further increased to 15,000 orders per day, with market size valued at $550 million (N88 billion). Today, on average, the leading online stores achieve about $2 million worth of transactions per week (approximately N1.5bn per month).
The growth in the e-commerce space in Nigeria has been made possible by the activities of major on-line retailing platforms such as ishopright.com, Konga.com, Jumia.com, DealDey, QuickTellers, WakaNow, RyteDeals, Checki.com, and Buga.com among others. Two of the leading players in the sector, Jumia and Konga received $50 million (N8.25 billion) investments in the last one year. Since 2012 till date, the sector has attracted $200 million Foreign Direct Investment (FDI). Cost reductions and improved marketing reach are two of the main advantages which electronic platforms offer.