General News
Price Vs Quality: The Nigerian e-commerce shopper’s dilemma
By Terry Ibinabo,
By nature, Nigerians are predominantly traditional in their approach to shopping.
This is hardly surprising when you consider that online shopping or e-commerce, as it is more popularly known, is a fairly recent phenomenon, one that is still catching on here in Nigeria but undoubtedly growing in leaps and bounds.
Indeed, e-commerce, or at the very least, the structured version of it that we experience today, is barely a decade old in Nigeria. More on this later.
The predilection to readily embrace an opportunity to see, touch or experience a product (a classic case of what you see is what you get) before parting with hard-earned money is deeply ingrained here.
This is undeniably tied to the skepticism and natural sense of caution an average Nigerian possesses, particularly in situations that involve spending money.
Another important factor is a chance to haggle over price and the satisfaction of walking away with a perceived good deal, especially when the buyer succeeds in convincing the seller to shift ground. This is not to rule out the warm, human interaction that shopping in such traditional retail formats engender.
Perhaps, this is why open-air markets, corner shops or mom and pop stores remain popular and have continued to command a dominant share of retail spending in Nigeria and many other African countries.
The foregoing finds expression in a recent study by the Boston Consulting Group (BCG). Specifically, the report, published in June 2022 , submits that more than 600,000 small shops and open-air markets dominate the retail landscape in Nigeria, accounting for an overwhelming 97% of national sales of food, beverages, and personal care products.
The study adds that these traditional retailers consist of small kiosks and open-air markets. Even more eye-opening is the fact that the report reveals that the dominance has remained, despite the considerable challenges posed to traditional retail by the expansion of modern retail, the nascent rise of e-commerce and changes in consumer behaviour accelerated by the COVID-19 pandemic.
Titled ‘The Future of Traditional Retail in Africa’, the report holds that despite the advance in supermarkets, convenience stores, and other modern formats, including e-commerce, African consumers on average continue to buy more than 70% of their food, beverages, and personal care products from the continent’s more than 2.5 million small, independent shops.
In addition to some of the earlier listed factors which encourage traditional shopping, the BCG study highlighted other prevailing reasons.
‘‘Several factors make traditional retailers remarkably resilient. Small shops offer the proximity, flexibility, and convenient operating hours needed to serve their communities. They also often allow customers with limited incomes to purchase small quantities on credit,’’ the report suggests.
The BCG report is bolstered by another research conducted by the Oxford Business Group which attests to the power of traditional retail. The study noted that Nigerian shopping is still heavily dominated by the world of neighbourhood stores, street vendors and open markets. Although the study predicts that this will change with time, it insists that traditional retailers will continue to dominate for the following reasons.
‘‘One is taste: even of those who can afford to shop in malls or supermarkets, many prefer more traditional ways. Another is a tendency to shop frequently rather than stock up.
And deficient public transport means that malls are not very accessible to those without cars. Yet another edge may be cost-related, as pointed out to the local Business Day in April 2012 by sector analyst Cedric Bra.
Using informal labour, often selling goods bought illegally, and frequently operating unregistered and therefore untaxed, smaller shops can keep costs low. Contrast the modern retailers, which have high fixed costs and visibility, having to obey the rules in respect of tax and sourcing.
Taken together, noted Bra, this means that modern grocery retailers’ prices are on average 10-20% higher than those found in unregistered outlets.’’
Nevertheless, one can no longer deny the growing influence of e-commerce or online shopping, as a useful and convenient alternative for a growing band of savvy shoppers. This can be attributed to the rise in internet connectivity, greater exposure among the younger members of the population, the impact of the COVID-19 pandemic which brought the power of online shopping to the fore, as well as the ease and convenience that accompanies digital shopping.
Also worth mentioning is the growing awareness and appetite for e-commerce among Nigerian shoppers. A survey conducted by Philip Consulting in 2016 in Lagos, Abuja, Oyo, Delta, Kaduna and Rivers States revealed that at least 51% of respondents sampled still prefer to shop in-store, while 49 preferred online shopping. But between 2014 and 2016, 97% disclosed that they have currently shopped online, at least once per year.
E-commerce is also being embraced by a growing segment of the population because they do not face some of the structural challenges that confront traditional retailers.
One of this is inefficient distribution systems that often force retailers to close their shops for several hours so they can go purchase goods from wholesalers, making it hard to obtain or retain sufficient inventory – a pain-point that tech-driven platforms such as TDiLife, a major FCMG and lifestyle products distribution giant headquartered in Lagos, are helping these small businesses overcome.
Further boosting the popularity of e-commerce is the range of options afforded the shopper. From the comfort of one’s living room, bedroom or office, you can check out an array of products from the biggest brands on the platform of competing players at the click of a few buttons on your device – smartphone or laptop.
Also closely related to this is the fact that one can do this at any time of the day. In other words, e-commerce is a 24-hour operation, one that allows shoppers access to preferred items round the clock, without having to worry if the market is closed or whether the seller is yet to open or has locked up their kiosks to go to church/mosque or attend to other pressing personal issues, as may be the case with traditional retail.
But more importantly, e-commerce has the beneficial attribute of enabling Nigerians live out their price-sensitive proclivities.
Here is the catch. The average Nigerian is a price-conscious freak. We get unusually emotional or irritable at the prospect of being made to pay a higher price when we can avoid it. In the same way, we are often triumphant, giddy with excitement and fulfilled when we succeed in extracting a discount, a deal, a better price than stated for a product or item.
Certainly, e-commerce is best placed to sate this thrifty appetite.
A 2019 GE Shopper Research Study revealed that a growing number of consumers extensively research and compare prices and offers before making major purchases. According to the study, 81% of consumers go online before shopping and spend an average of 79 days gathering information before making a major purchase.
Further, the study disclosed that the availability of financing options continues to be a key factor in a shopper’s choice of retailer, with nearly half of all shoppers researching payment options online before visiting a store.
The above aligns with a 2017 Retail Dive Consumer survey.
The findings show that 56% of shoppers say they visit stores — at least occasionally — to first see, touch and feel products before buying them online. Additionally, one-third of shoppers say they make this practice a habit, reporting that they always or frequently go to stores to see or try out items before buying on the web. One in 10 shoppers say they always visit a store to see items they then buy online.
Here in Nigeria, it is common for shoppers to explore and compare prices among the major e-commerce firms before making up their minds, thereby affirming the primacy of price in the decision-making process. But where does product quality stand in the mix? Given a choice, would you sacrifice quality on the altar of cheaper pricing? This is the dilemma that confronts many online shoppers in Nigeria today.
Nevertheless, several studies point to the fact that quality remains key for most consumers, even ahead of price.
This takes us back to the recent emergence of e-commerce and its rise as a tool for price comparison. Hardly can one discuss e-commerce in Nigeria today without a mention of Jumia and Konga, unarguably two of the market leaders, but both of which have only been in operation here for 10 years.
Predating this, however, the only other claim Nigeria can lay to anything resembling e-commerce was BuyRight Africa, a platform founded over 13 years ago by Leo Stan Ekeh, one of Africa’s leading techpreneurs and which was way ahead of its time, but reportedly collapsed due to the absence of credit/debit cards at the time, paving the way for the latter-day players.
Still, many would be hard pressed when choosing between price and product quality.
But in the view of Durogba Arogundade, an e-commerce researcher based in the UK, the decision ought to be a simple one for shoppers.
‘‘As a Nigerian, I understand the huge attention paid to price. However, a shopper would only be getting the short end of the stick if they prioritized a sweet price at the expense of a low-quality product. It is a decision that often ends badly.
“The key is finding a balance. This is where brands such as Konga come in, by leveraging their combination of the traditional retail approach represented by strategically located physical stores accessible to the shopper and modern retail, as represented by their online platform.
“You can never go wrong here as research indicates that many shoppers often visit retail stores when comparing prices before buying online and vice-versa.’’
Arogundade’s submission is further supported by insights gleaned from George Nkem, a self-professed avid online shopper.
‘‘I have been shopping online actively for the past six years. I have experienced all the e-commerce firms we have. Today, I can confidently tell you Konga has the best price. Yes. Things are cheaper at Konga across board. But that is not where it ends for me. Quality is also very important.
“So, I would rather choose a place where I can get both. So, I often walk into a Konga store most times as it enables me confirm product quality and compare prices with other platforms online before I pay.’’
In conclusion, the controversy surrounding price and quality can be said to have been laid to rest bby findings from the Retail Dive Consumer Survey.
‘‘Because a majority of shoppers are still visiting stores before buying products online, it remains critical for retailers to provide a high-touch in-store experience.
“Turning physical retail space into showrooms — where customers can try and test products and generally get to know the product better before making the final purchase online — may be the logical next step for retailing,’’ the study asserts.
Terry Ibinabo, an academic, researcher and varsity lecturer, writes from Abuja
The Bank of Industry (BoI), Nigeria’s foremost Development Finance Institution (DFI), has signed a landmark Memorandum of Understanding (MoU) with the Nigerian Belgian Chamber of Commerce (NBCC), setting the stage for deeper economic cooperation, expanded investment flows, and stronger industrial partnerships between Nigeria and Belgium.
The agreement was signed during a high-level breakfast meeting jointly hosted by BoI and the NBCC under the theme, “Scaling Operations, Expanding Capacity, and Accessing Competitive Finance.” The event convened senior government officials, diplomats, business leaders, development partners, MSMEs, and private sector stakeholders committed to advancing bilateral trade and industrial development.
Speaking on behalf of the Managing Director and Chief Executive Officer of the Bank of Industry, Dr. Olasupo Olusi, the Executive Director, Corporate Finance, Sustainability and Investments, Mr. Rotimi Akinde, described the partnership as a strategic milestone in BoI’s drive to expand global collaborations that accelerate Nigeria’s industrial transformation.
“As Nigeria’s leading Development Finance Institution, the Bank of Industry has consistently recognised that sustainable industrial development is built not only on access to finance but also on enduring strategic partnerships.
“This collaboration with the Nigerian Belgian Chamber of Commerce reflects our commitment to creating stronger international business corridors that unlock investment, facilitate technology transfer, support MSMEs, and strengthen Nigeria’s industrial competitiveness,” he said.
Akinde noted that Belgium remains one of Europe’s most dynamic trading and investment destinations, making the partnership an important platform for promoting co-investment opportunities, export development, enterprise growth, and knowledge exchange between businesses in both countries.
The two-year renewable MoU establishes a framework for joint business forums, investment roadshows, trade missions, business matchmaking, enterprise capacity development, and increased promotion of BoI’s financing solutions to Belgian investors and businesses operating in Nigeria.
The collaboration is also expected to improve access to foreign direct investment, expand export-oriented industrial projects, and create stronger commercial linkages between BoI-supported enterprises and the Belgian business community.
Delivering the welcome address, His Excellency Pieter Leenknegt, Ambassador of the Kingdom of Belgium to Nigeria, commended the growing economic relationship between both countries and expressed optimism that the partnership would create new opportunities for businesses on both sides.
The General Manager of the Nigerian Belgian Chamber of Commerce, Marc Eeckhout, described the agreement as a practical platform for translating business interest into measurable economic outcomes.
“This Memorandum of Understanding represents more than an institutional partnership; it creates a structured bridge between Belgian innovation and Nigerian enterprise. By working closely with the Bank of Industry, we are opening new pathways for investment, technology exchange, and business collaboration that will enable companies from both countries to scale with confidence while contributing to sustainable industrial development,” he said.
The breakfast dialogue featured presentations on business expansion, industrial financing, and competitiveness, with contributions from industry leaders, including Engr. Vincent Adegbotolu, Managing Director/CEO of DWC Engineering, and Mudiaga Okumagba, Managing Director/Chief Executive Officer of Direct Logistics Plus.
The partnership aligns with BoI’s 2025–2027 Corporate Strategy, which prioritises industrialisation, MSME development, youth and skills, women’s economic empowerment, climate finance, digital transformation, infrastructure, and export promotion. With assets valued at over ₦6.8 trillion, the Bank continues to strengthen strategic international partnerships that support the Federal Government’s industrialisation agenda while creating jobs, enhancing productivity, and promoting sustainable economic growth.
Through the collaboration, BoI expects to attract new investment opportunities from the Belgian business ecosystem, increase financing for high-impact industrial projects, strengthen export value chains, and improve the investment readiness of Nigerian enterprises through joint advisory and capacity-building initiatives.
The Bank reaffirmed its commitment to working with global partners to unlock long-term capital, accelerate industrial growth, and position Nigeria as a competitive investment destination within Africa and beyond.
Federal government has announced plans to end the separation between Junior Secondary School (JSS) and Senior Secondary School (SSS) as part of efforts to improve school retention and reduce the high number of pupils dropping out before completing secondary education.
Tunji Alausa, minister of Education
Tunji Alausa, minister of Education, announced the proposal on Tuesday during the inauguration of the Ministerial Implementation and Monitoring Committee of the Universal Basic Education Commission (UBEC) in Abuja.
Alausa said the existing “disarticulation policy,” which requires junior and senior secondary schools to operate independently with separate principals, management structures and facilities, has failed to achieve its intended objectives and has instead worsened access to education.
According to him, the Federal Government will present a proposal to abolish the policy at the next meeting of the National Council on Education (NCE), the country’s highest education policymaking body.
“We have 20 million dropouts from primary school to JSS. Where are those students?” the minister queried.
“We also found we have 80,000 public primary schools and only about 15,000 junior secondary schools. That’s a one-to-eight ratio.”
He explained that the mismatch between the number of primary and junior secondary schools has created severe bottlenecks in the education system, leading to overcrowded classrooms at the junior secondary level while many senior secondary school facilities remain underutilised.
Alausa cited Kaduna and several northern states as examples where the policy has contributed to poor transition rates between basic and secondary education.
“This disarticulation policy has failed. We will phase it out. We can’t be creating positions because we want to create director-level appointments for people while we harm our education system. It’s about doing what is best for every Nigerian child,” he said.
The minister said the proposed reform forms part of broader efforts by the Tinubu administration to improve access to education, increase retention rates and enhance learning outcomes across the country.
He acknowledged previous shortcomings in tackling the out-of-school children crisis but expressed confidence that the current administration would reverse the trend.
“This government will not fail. We are fixing it,” Alausa declared.
At the ceremony, the minister also inaugurated the UBEC Ministerial Implementation and Monitoring Committee, chaired by Prof. Rashid Aderinoye, to supervise the execution of UBEC-funded Smart Schools, Bilingual Schools and Alternative Schools nationwide.
He said the committee had been tasked with ensuring that the projects are completed, handed over to state governments and opened for teaching and learning.
Although UBEC has invested in hundreds of Smart Schools and related educational projects across the country, Alausa lamented that many remain abandoned, unfinished or yet to admit pupils, describing the situation as an unacceptable waste of public resources.
He stressed that improving education requires more than constructing schools, insisting that completed facilities must become fully operational and accessible to learners.
Federal government has said that it plans to establish a National Skills Database as part of efforts to reduce unemployment, address the growing mismatch between available skills and industry needs, and strengthen workforce planning through data-driven policies.
The proposed database, to be developed under a Nigerian Skills Observatory, is expected to provide real-time information on the supply and demand of skills across sectors, enabling better job matching, improved policy formulation and targeted investments.
The plan was unveiled at the second National Skills and Industry Alignment Roundtable Series held in Abuja with the theme, “The Role of Data in Job Creation, Coordination and Linkages.”
Delivering the keynote address, Yemi Kale, group chief economist and managing director of Research and Trade Intelligence, Afreximbank, said Nigeria’s labour market challenge was no longer the absence of data but the inability to convert existing information into actionable intelligence.
“The challenge for us as a nation is not one of data accumulation. It is one of data integration and intelligence,” Kale said.
He explained that although vast amounts of information on education, employment, wages and skills development already exist across government agencies, educational institutions and the private sector, the data remains fragmented, making effective labour market planning difficult.
“Data tells you what exists. Intelligence tells you what is happening, what is likely to happen next and what actions should be taken,” he said.
Kale lamented that while Nigeria produces thousands of graduates annually, employers in critical sectors continue to struggle to recruit qualified workers, even as millions of Nigerians remain unemployed or underemployed.
“The problem is that employers are searching, workers are searching, policymakers are searching and investors are searching independently rather than collectively. Opportunities that should be visible remain hidden because the information needed to connect them is fragmented,” he said.
According to him, the disconnect has created structural inefficiencies that discourage investment, suppress productivity and prevent Nigeria from fully leveraging its youthful population.
He added that countries that successfully transformed their economies deliberately aligned education, skills development and workforce planning with the needs of industry.
Kale urged Nigeria to view its youthful population as an economic asset by ensuring young people acquire skills demanded by modern industries.
Speaking on the proposed National Skills Database, Rimam Nuhu, special assistant to the President on Workforce Development, said the platform would serve as the foundation of the Nigerian Skills Observatory.
“At the most foundational level, the Skills Observatory is to create a database on the demand and supply of skills,” Nuhu said.
He explained that the National Council on Skills, chaired by Vice President Kashim Shettima, would rely on data generated by the observatory to formulate evidence-based policies on workforce development.
“Skills development is an input for job creation. We have a market where there are a lot of skills mismatches. Understanding exactly where those shortages exist will help us plan better and improve workforce planning.
“Ultimately, that contributes to a more productive economy,” he added.
Nuhu acknowledged ongoing debates over whether Nigeria is facing an actual shortage of skilled workers or merely a mismatch between available skills and labour market demand, stressing that the database would provide the evidence needed to guide interventions.
Earlier, Akubo Adegbe, senior special assistant to the President on Coordination and Delivery, said the roundtable was convened to tackle the fragmentation of labour market information across government institutions and the private sector.
He noted that despite huge volumes of workforce data being generated daily, the lack of coordination often leaves policymakers without a comprehensive understanding of labour market realities.
“If our first Roundtable challenged us to better align skills with industry, this second Roundtable challenges us to better align information with action,” Adegbe said.
Also speaking, Massimo De Luca, head of Cooperation at the European Union Delegation to Nigeria and ECOWAS, said the EU would continue supporting Nigeria’s efforts to build a labour market capable of meeting investors’ needs.
“We have a shortage of skilled labour when it comes to big investment projects. On the other hand, we have a lot of untapped talent that is not adequately recognised.
“Those are realities that investors take into account,” De Luca said.
He commended the Office of the Vice President for leading reforms aimed at strengthening Nigeria’s skills development ecosystem.
The Federal Government’s plan comes amid persistent unemployment and skills mismatch in Nigeria, where many graduates remain jobless despite employers reporting shortages of qualified workers in critical sectors.
The National Skills Database will serve as the foundation of the proposed Nigerian Skills Observatory, an initiative designed to provide real-time labour market data to guide workforce planning, skills development and evidence-based job creation policies.
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