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Five Factors Fuelling Rise of eCommerce in Nigeria

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eCommerce has become a global multi-million-dollar industry, with worldwide sales projected to hit an all-time high of $4 trillion in three years.

Although accurate statistics on the volume of e-commerce transactions on the continent is hard to come by, research by McKinsey indicates that e‑commerce will open up a new shopping experience for Africa’s growing middle class.

According to McKinsey, e-commerce could account for 10 per cent of retail sales in the continent’s largest economies by 2025, translating into about $75 billion in annual revenue.

With more Nigerians embracing the e-commerce fare amid a growing awareness for globally celebrated shopping festivals such as Black Friday and Cyber Monday, among others, the country could be on the verge of reaping big benefits from the sub-sector.

In this piece, the Research and Development Unit of Yudala, Nigeria’s fastest growing e-commerce outfit, takes a look at the factors fueling the growing attraction of e-commerce in Nigeria.

Growth in smartphone adoption
eCommerce is an industry that thrives on the smartphone culture. Nigeria remains one of the most attractive markets on the continent for smartphones and other tech gadgets –  a factor that has seen the growing influx of a number of smartphone brands all competing for a share of the juicy market.
As a result, smartphone adoption is on the rise in Nigeria.  This has gone a long way in boosting e-commerce in Nigeria, with the mobile devices category remaining one of the fastest moving among shoppegrs on the Yudala platform.
Global digital giant Google recently announced the imminent launch of a smartphone made by Japanese brand, Freetel during its Google for Nigeria engagement with an attractive price point of N13,000. With more quality yet price-sensitive manufacturers coming on-board, the smartphone adoption trend is expected to rise further in Nigeria.

Rise in mobile internet penetration
Closely related to the above is the rise in mobile internet penetration in Nigeria. Current data made available   by the Nigerian Communications Commission (NCC) shows that the number of internet users in Nigeria has increased to 91.6 million in June 2017.
According to the statistics released, internet users increased to 91,598,757 in June 2017 as against 91,565,010 users recorded in May 2017, showing an increase of 33,747.
With more data-efficient browsers such as Opera Mini coming into play and mobile apps also presenting a convenient means of accessing the offerings of competing e-commerce brands, the appeal of e-commerce is well and truly on the rise.

Proliferation of e-commerce sites
From the heady days of 2012 when only a couple of players held sway, the e-commerce bug has spread like wild-fire.
New entrants have taken to the fray, expanding the scope of offerings and the conduct of e-commerce in the country. Some of them have challenged existing structures by providing more convenient options for the consumer to shop.
Yudala’s fusion of an online platform with physical (brick-and-mortar) stores located nationwide comes to mind here.
The first-ever drone delivery also achieved by Yudala during its debut Black Friday sales in November 2015 also captured the imagination, further raising the bar and setting new standards in the sub-sector.
Others such as Payporte have made a huge splash through events sponsorship with the bank-rolling of the reality show, Big Brother Nigeria.
These days, the average Nigerian has a plethora of e-commerce companies to choose from, a factor that has contributed in no small measure to the popularity of the industry.

Ease and convenience in shopping
For most busy Nigerians caught up in the daily hustle of making ends meet in cosmopolitan cities such as Lagos, Abuja, Port Harcourt, etc., the convenience and ease that e-commerce lends is a blessing.
The days when the only option one has is to physically visit the market to get much-needed items seem to be over.
Today, you can sit in the comfort of your home or office, check out an item online, place an order and have the item(s) delivered within a couple of days without hassles.
This extra convenience works perfectly not only for busy business executives but also for expectant/nursing mothers and other categories of shoppers unable to find the time nor unsure of the right open-air markets to visit for needed items.

More options
Closely related to the point above is the variety of options e-commerce has provided for the average shopper to meet his/her shopping requirements.
For many Nigerians, seeing and being able to touch an item beats just being able to see it on the screen of a mobile phone or laptop.
Many still want to see, touch, feel and/or experience a product before they part with their money. With platforms such as Yudala fusing an online platform with offline/physical retail stores, the consumer has more options to embrace e-commerce, albeit from a traditional shopping stand-point.
The consumer can order online and pick up the item or self-fulfil at the nearest store or better still, walk in to the store and purchase a product outright.
Indeed, recent statistics show that a significant number of purchases made at Yudala’s physical stores originate from shoppers who had previously checked out the products online. These options have contributed to a large extent in improving the appeal of e-commerce for hitherto-unconverted folk in Nigeria.


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NITDA, NIMC Partner for Seamless Data Exchange Capabilities

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National Information Technology Development Agency (NITDA) and the National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance synergy between digital identity, payment ecosystems and secure seamless data exchange capabilities for Nigeria.

NITDA, NIMC Partner for Seamless Data Exchange Capabilities

l-r: Kashifu Inuwa, Director General of NITDA, and Bisoye Coker-Odusote,  Director General of NIMC, during the meeting at the NIMC headquarters in Abuja..

NITDA, which made the announcement on its X handle, said that the collaboration was to further strengthen Nigeria’s digital economy in line with President Bola Tinubu’s Renewed Hope Agenda,

During the meeting, Kashifu Inuwa, director general of NITDA, and Bisoye Coker-Odusote, director general of NIMC, with some management staff of both organisations, discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of public-key infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up.

This committee will play a crucial role in kickstarting and harmonising the initiatives and is expected to deliver a comprehensive implementation report within the next 4 weeks.

 

 


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Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

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Noble Ajuonu, head, Sydani Technologies Ltd., has urged the Federal Government to harmonise National Identification Number (NIN) and Bank Verification Number (BVN) to tackle crimes and insecurity in the country.

Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

Ajuonu made the call at a media roundtable, organised by Sydani Group in Abuja.

The News Agency of Nigeria (NAN) reports that the roundtable focuses on driving sustainability through a comprehensive analysis of Nigeria’s key development areas.

Ajuonu said that Nigeria could overcome its security challenges and pave the way for a safer, more secure future for all Nigerians by embracing technology and implementing practical solutions,

“We need to harmonise data, prioritise seamless integration of databases like NIN, BVN, and security agency records, establish clear protocols for data sharing and access, with robust safeguards against misuse,’’ expert said.

According to him, the unified data pool will empower intelligence gathering and targeted operations.

He also called for investments in smart surveillance, intelligent video analytics software, training of personnel in data analysis, interpretation of data in real-time to combat crimes.

“There is need to implement a legal framework for call interception in criminal investigations, with strict oversight to prevent abuse, encourage community cohesion, training of tech savvy security personnel with tech-enabled tools.’’

Ajuonu also urged the government to address infrastructure deficit in technology, saying that technology was all encompassing to address insecurity.

“According to the National Identity Management Commission (NIMC), as of December 2023, only 104.2 million Nigerians had been enrolled for the National Identity Number (NIN).’’

Ajuonu added that over 122.2 million citizens left uncaptured for NIN were people in rural areas where enrolment centres, digital services were limited.

“Most crimes are being perpetuated from rural communities and this lack of comprehensive identification creates a gap where elements not captured in the national database can constitute public nuisance, crimes.

“There is the inadequacy in the integration of NIN, BVN and Voters Identification Number (VIN).

“Advanced call interception and analysis tools, used successfully in other countries, could provide invaluable insights into criminal networks and operations but infrastructure is lacking,’’ he said.

Also, Mr Godfrey Petgrave, the Agricultural Expert, Sydani Group, called for empowerment of smallholder farmers with access to finance and training to enhance productivity.

According to Petgrave, Nigeria requires policy reform and institutional strengthening to improve agricultural practices and embrace digital agriculture solutions to address food insecurity.

Mr Akolade Jimoh, another expert of the group on health, advocated for expanded community-based health insurance programmes for rural and underserved areas.

Jimoh added that the country needed to encourage Public Private Partnership to revolutionise products design and quality improvement on health services.


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Konga launches Infinix Brand Week with Incredible Deals

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Konga, Nigeria’s leading composite e-commerce group, is thrilled to announce the launch of amazing deals at its Infinix Brand Week. Infinix, a leading global smartphone brand known for its innovative products and cutting-edge technology promises exclusive discounts and special offers on select smartphones, marking an exciting milestone in the realm of online shopping.

Shoppers can expect nothing short of extraordinary deals on a wide range of Infinix products, all available exclusively on the Konga online platform. With discounts of up to 30% off, this partnership between Konga and Infinix aims to redefine the shopping experience for tech enthusiasts across Nigeria.

Konga Brand Week has become synonymous with excitement and unbeatable deals, and this year’s edition is no exception. In addition to exclusive discounts on Infinix smartphones, shoppers can explore a diverse array of products across various categories, including electronics, fashion, home essentials, and more.

“At Konga, we are dedicated to providing our customers with the best shopping experience possible,” said Rita Ohaedoghasi, VP Marketing at Konga. “The Infinix Week during Konga Brand Week allows us to continue delivering on that promise by offering incredible discounts and special offers on some of the most sought-after smartphones in the market.”

To stay updated on the latest developments and exclusive deals during Konga Brand Week, shoppers are encouraged to connect with Konga across all platforms, including social media and the Konga website. Don’t miss out on this opportunity to score big savings and elevate your tech game with Infinix and Konga.


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