E-Business
Five Reasons why E-commerce is a Boost to Informal Retail
Having existed in the background for centuries, Nigeria’s informal retail market is witnessing massive rejuvenation, thanks to B2B e-commerce brands applying technology to resolve the chronic market problems.
In the last three years, new market routes have emerged for retailers, as the industry gradually embraces the digital revolution. Discussed in this article are five ways e-commerce will further boost the informal retail market.
Price stability: Fast moving consumer goods are the everyday necessities that make informal retail thick, but those familiar with the market would know that prices of these goods are constantly unstable. One major improvement e-commerce brands bring to this market is to help regulate price of products.
“With our services, we have not only eliminated the need to allocate revenue to transport fares and market fees, we have also regulated the prices of products. Thereby, we ensure that our informal retailers are not affected by unreasonable price-hikes.
As evidence of this, 96% of our retailers say that our prices are fair and competitive compared to other suppliers,” said market expert and CEO of Alerzo Limited, Adewale Opaleye.
Open market options: The current market structure has lasted for ages, but retailers who are the major link to consumers still mostly end up with the short end of the stick.
A chat with these retailers will show that current market arrangement leaves them at the mercy of distributors: unpredictable prices and scarcity of products, especially during peak demand periods, are few of the many prevalent issues.
Majority of them would gladly embrace another market route to rival the current distributor/marketer chain. Interestingly for retailers, e-commerce brands not only offering cheaper restocking routes, but also an efficient option which will lead to a competitive and ultimately a more vibrant market.
Improved distribution chain: The activities of e-commerce players in the industry will not only benefit the retailers, but the whole distribution value chain. Since their entry into the market, the B2Bs have reiterated that they are here as market aggregators, who see the current league of wholesalers/distributors as partners, and have no aim of displacing them.
Also, facilities of these B2B e-commerce platforms can be of benefit to distributors. A platform like Alerzo said it provides warehousing and fulfilment solutions to suppliers.
The company said it currently owns over 200 vehicles and 20 warehouses to serve thousands of retailers on its platform. Some B2B players have also said current suppliers and distributors serve as a source of product supply for them in certain regions of the country.
Market insight for manufacturers: By their business model, B2B e-commerce brands penetrare hitherto marginalised and underserved retailers mostly in rural settlements. This ability to penetrate rural communities make them good data banks, as they are able to gather information from their first hand interaction with retailers.
Such data will come in handy for manufacturers, by providing them insights into present customer behaviour and ultimately help proper planning and development of suitable products.
Better business experience for retailers: Customer relationships and retention for informal retailers are major metrics of success while running their stores.
By offering an easy and convenient inventory channel, e-commerce will help retailers deliver better customer services. By ordering inventory online, a retailer saves time and energy, thus having more time for customer interaction.
Added to this is improved access to funds for business growth. About 85% of informal retailers settle transactions in cash, not out of choice but because the credit system financially marginalises them.
Informal retailers who embrace these digital platforms also have the opportunity of building transaction records on e-payment apps that will facilitate access to loans. Some e-commerce platforms like Alerzo also provide sellers with training and advisory that helps improve their digital skills and open them to more opportunities to grow their businesses.
Nigeria Data Protection Commission (NDPC) has said the certification of data protection professionals in the country will significantly reduce capital flight and create more than 500,000 jobs in the sector.
L-r: Dr. Vincent Olatunji, executive commissioner, NDPC and Dr. Oyedokun Oyewole, president of the Institute of Information Management,
Dr. Vincent Olatunji, executive commissioner, NDPC, stated this at the presentation of the certificate of licence to the Institute of Information Management (IMF) in Abuja.
He said the certification of data protection professionals would not only enhance the protection of personal data, but also boost the country’s economic growth and development.
The projection comes as the commission intensifies efforts to promote data protection and privacy in Nigeria’s rapidly growing digital economy.
According to Dr. Olatunji, the move aims to enhance the capacity of organisations to protect personal data and promote compliance with Nigeria’s data protection regulations.
Establishing a local institution to train and certify Nigerians would significantly enhance local content in the sector, the NDPC boss hinted.
The commission, he assured his audience, was already exploring the possibility of implementing the licencing framework across Africa—a move that could potentially harmonise data protection standards and expertise across the continent.
Dr. Oyedokun Oyewole, president of the Institute of Information Management, said the licence would effectively address the existing gap in the data protection ecosystem, providing a much-needed solution.
Recalling that the certification process began in 2021, Dr. Oyewole reaffirmed the institute’s dedication to excellence, pledging to provide top-notch education in data protection and set a benchmark for the country’s education system in this field.
The IIM’s certification programmes will cover essential topics such as data protection principles, risk management, and compliance with the Nigeria Data Protection Regulation (NDPR).
The initiative is expected to boost the confidence of organisations and individuals in the country’s data protection landscape.
Nigerian Consumer Credit Corporation (CrediCorp), has partnered Fintech Association of Nigeria (FinTechNGR) to drive consumer credit scheme initiative through a robust payment platform that would be provided by members of FinTechNGR.
Speaking at a Social Meet in Lagos, organised by FinTechNGR, with the theme: “Augmenting the Future, AI, Credit and Transformation of Nigerian Finance,” the Chairman, CrediCorp Board of Directors, Aderemi Abdul-Bojela, said members of FinTechNGR would have specific roles to play in the partnership, in the areas of providing robust platform for money transfer, technology evaluation, among others.
“Today, CrediCorp is engaging with members of FinTechNGR in a social interactive gathering to discuss collaboration and support for the growth of Consumer Credit Corporation in Nigeria. We want to interact to understand how technology will drive the crediCorp initiative in Nigeria and also to understand the role that members of FinTechNGR will play in all of these initiatives around CrediCorp,” Abdul-Bojela said.
Describing the partnership as a welcome development that will enhance savings culture among Nigerians, the Chief Operating Officer (COO) of FinTechNGR, Dr. Babatunde Obrimah, said: “FinTechNGR is an enabler of technology advancement in Nigeria. We bring the players together to drive technology innovation.
“Our role in the FinTechNGR-CrediCorp partnership is to ensure that our members support the growth of consumer credit in Nigeria, by providing the relevant payment platforms for all financial transactions among the banks who are the lenders, the customers who are the burrowers and the CrediCorp who is the guarantor.”
Speaking about the benefits for Nigerians, Obrimah said the Consumer Credit Corporation in Nigeria would enhance the country’s credit culture and enable Nigerians to save and plan well with their savings. “The initiative will address inflation, help in liquidity flow, build trust in customers’ borrowing, boost credit culture and enhance the culture of savings among Nigerians,” Obrimah said.
Addressing the issue of risk and consumer trust, Abdul-Bojela said the CrediCorp has put measures in place to ensure that the banks that would be involved in lending, would be protected and guaranteed of the repayment of the loans within the CrediCorp ecosystem.
He said there would be an independent management that would ensure that the right technology is put in place to recover all monies.
Kashifu Abdullahi, director general of the National Information Technology Development Agency (NITDA), announced plans to integrate digital literacy into Nigeria’s education system, to achieve a 70% literacy rate by 2027 and 95% by 2030.
Kashifu Abdullah, DG, NITDA
The NITDA’s DG made the announcement on Wednesday in Abuja during a media parley.
He stated that in order to include digital literacy in the curriculum at all educational levels, from kindergarten to university, the Agency was collaborating with the Federal Ministry of Education.
Abdullahi, said that this program would equip Nigerians with the digital know-how and abilities they need to succeed in the digital economy.
He emphasized that NITDA would also launch the “Digital Literacy for All Initiative” to educate Nigerians outside the formal education system and provide access to quality digital content.
Nigeria would train over two million young people in in-demand IT skills in order to become significant global outsourcing hub
NITDA is also collaborating with the Defence Headquarters and security agencies to develop digital solutions to address security concerns, including the use of drones, artificial intelligence, and other digital resources to combat banditry, abduction, and terrorism, he said.
According to him, the agency’s draft SRAP 2.0 plan aims to establish Nigeria as a digitally empowered nation, with a focus on innovation, national prosperity, and inclusivity.
The director general of NITDA added that, if successfully implemented, this strategy could propel Nigeria into a new phase of digital empowerment and leadership in the global digital economy.
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