Broadcasting
Is Jumia on the Verge of a Shock Exit from Nigeria?
By Kameni Doe
Long touted as the Amazon of Africa after a much-publicised listing on the New York Stock Exchange (NYSE) in 2019, Jumia has since contended with a reversal of fortunes, accentuated by a series of missteps or unforced errors that have crippled its status and left market watchers speculating about a potential exit from Nigeria, its biggest market.
As recently as 2016, Jumia became the continent’s first unicorn being valued over 1 billion USD. It had equally seen a rapid expansion of its services to over 15 countries in Africa. However, after a highly subscribed Initial Public Offer (IPO) on the NYSE that later went south after a bashing from Citron, a US-based equity intelligence research company (which described the filing as a fraud and the company’s shares as worthless), it has been a seeming trajectory of grace to grass for Jumia.
But how did it all go wrong for this e-commerce giant?
In analysing the Jumia debacle, it is important to situate the fact that the company, from inception, has been a loss-making entity. Jumia is yet to turn profitable, despite over a decade of huge financial investment and massive expenditure in marketing and overheads in Nigeria. Considering the fact that Nigeria remains the biggest contributor to its revenue profile, one can only imagine how it has fared in other African countries in which it is operating. In November 2019, Jumia announced the suspension of its e-commerce operations in Cameroon effective November 18 as the company concluded that its transactional portal is currently not suitable to the current environment in that country. As part of the portfolio optimization effort, Jumia later ceased operations in Tanzania effective November 27, 2019. While its operations in Tanzania provided many opportunities for customers and vendors, the company said it needed to focus its resources on other markets that can bring the best value and help Jumia thrive. In addition, the company held that the decision would help it achieve greater success in the future. On December 9, 2019, Jumia suspended Jumia Food in Rwanda, making it the third country in two months as part of a continuous monitoring of the business environment and operating costs in the markets in which it operates. However, it expressed its intention to continue doing business online in those countries on the classifieds portals, previously called Jumia Deals.
From the foregoing, one can detect its ongoing struggles in Nigeria mirror a discernible pattern across other locations in Africa.
More importantly, Jumia’s challenges in Nigeria can also be extrapolated from its often-changing business model which sometimes may appear misguided in navigating a peculiar market such as Nigeria. In 2020, Jumia announced a tweak in its business model to focus more on its third-party marketplace. This saw the company place less attention on its first-party model which involved the company basically buying items and putting it at the disposal of shoppers. Consequently, the intent was to grow its revenue from the collection of commission on items listed and sold on its platform – a move which appeared to have an instant impact. In 2021, Jumia generated more revenue – $24m in Q1 2021 compared to $23m in Q1 2020 — from third-party sales on its platform. However, in what would seem like not being able to have one’s cake and eat it, Jumia’s first-party revenue dropped from $12m in Q1 2020 to $8m in Q1 2021, a massive 35% decline. Although this switch in its business model contributed to lower logistics costs (Jumia’s fulfilment costs dropped by 18% Year-on-Year to $23.7m in Q4 2020 and in Q1 2021, it dropped to $17.2m), Gross Merchandise Volume (GMV) also took a hit as a result. In fact, average order value declined by 16% from $35.8m in Q1 2020 to $30m in Q1 2021 while GMV also dropped by 21% compared to 13% in Q1 2021.
Critics have also fingered the Jumia strategy of outspending Konga, its main rival in Nigeria, as one of the missteps that landed it in trouble. Jumia has spent a humongous sum to occupy a dominant Share of Voice in the Nigerian market, while not investing as much effort in cleaning up its reputation. The reality on ground, however, shows that while it has consistently spent more than 500 times than its closest rival, Jumia has not seen the massive expenditure result in any meaningful outcome in its acceptability, brand love or trust for the platform among Nigerians.
Closely related to this is some of the unethical shenanigans that have dogged Jumia over the years. After enduring a thrashing of its share value following revelations by Andrew Left, a short seller at Citron in 2019, Jumia confirmed that several class action lawsuits have been filed against the company and its officers in New York over alleged misstatements and omissions in its IPO prospectus. In addition, Jumia, in the same year, admitted that it had uncovered instances of improper orders placed and subsequently cancelled on its marketplace platform, wrongly inflating its order volume. Some of the improper sales practices, the company said, were carried out by its own personnel in Jumia Force, its network of commissioned agents. The fraudulent orders generated $17.5 million in GMV between the last quarter of 2018 and the first two quarters of 2019, prompting allegations that they had been used in padding the company’s financial statements filed as part of its IPO. Recently, Jumia was in the news for the wrong reasons once again this year, with over 60,000 units of fake Nokia 105 traced to it which the e-commerce company had already distributed to its outlets in Africa to grow their sales and number. Reports indicate that Nokia 105 is a marque product from Nokia and highly sought after in Africa. Since the relaunch of Nokia phones, some of its products have been targeted by crooks who clone them and sell at lower prices to beat competition. Checks at Nokia also showed that fake Nokia 3310, the rave of smartphones from Nokia and their most sold brand before it suffered market eclipse, had popped up in China soon after it was relaunched in 2017, as well as some markets in Asia and Africa, with Jumia believed to have been one of the distribution channels of these fake Nokia phones.
Not long after this development, the company had announced the exit of co-CEOs Jeremy Hodara and Sacha Poignonnec, ex-McKinsey consultants, who founded the company in 2012 alongside Tunde Kehinde and Raphael Kofi Afaedor.
But beyond this, the exit of a number of key investors seem to present the most valid evidence of the shaky foothold of Jumia in the Nigerian market. Added to this is the historical losses that have become a tradition of sorts for it. Jumia has accumulated over $1 billion in losses since inception in 2012 as it continues to burn through cash in order to stay relevant in the market but without a clear, discernible strategy to turn a profit. Only a fool would have supported the Jumia strategy of burning cash, with over $221m loss every financial year.
Leadership has remained a major sore point of note too. The vagaries and peculiarities of the Nigerian e-commerce market requires some deep, local insight which has been obviously lacking at Jumia. Indeed, feelers from industry experts suggest that the company’s leadership is inexperienced and blindsided, especially with respect to a core understanding of the Nigerian market. But the sacking or exit of two founders and some Management staff of the company equally appears to have come too late.
I had predicted years back that Jumia’s fight with Konga in a market that never existed may destroy Africa’s potential as a future market to bet on. Naspers and AB Kinnevik, erstwhile owners of Konga, were smart enough to sell to a strong and experienced indigenous company in the Zinox Group. The folks at Zinox at least understand the market, having built a solid reputation of leadership and constant success in the sector for over 30 years and are financially strong to navigate the tough market.
Konga pioneered the third-party marketplace structure which Jumia later aped. Also, Konga launched the omnichannel structure which has remained the mainstay of its business model, one that has also been adapted by global e-commerce players such as Amazon and Alibaba, among others. This model has aided Konga consistently take a share of the growing appetite for online shopping, while also allowing it key into the still predominant traditional shopping predilection of the average Nigerian. Since its 2018 acquisition by the Zinox Group and the subsequent operational merger between it and Yudala, we read that Konga has cut losses by over 45 per cent and also achieved growth of over 800 per cent in the past 18 months. Crucially, Konga’s advantageous understanding of the Nigerian market finds further expression in its fusion of an online platform with a growing chain of brick-and-mortar stores including its robust digital logistics, as well as its strategy of retaining a highly ethical, customer-centric approach to the business.
Clearly, there is strong optimism that Konga will survive, despite the encumbrances in the tough Nigerian market, but with Jumia, it would require a miracle. If founders anywhere in the world are unable to turn their company to profitability before exiting, it is near impossible for any corporate genius to restructure it and turn it around except they sell.
Like they say, founders understand the DNA of their companies.
Kameni Doe, an Emerging Markets expert, writes from Yaounde, Cameroon
The Court of Appeal in Abuja has dismissed an appeal filed by the National Broadcasting Commission (NBC) challenging a Federal High Court judgment that restrained the commission from imposing fines on broadcast stations.
Delivering judgment, Justice Jane Esienanwan Inyang held that the appeal was fundamentally defective and therefore incompetent.
The appeal stemmed from a Jan. 17, 2024 judgment delivered by Justice Rita Ofili-Ajumogobia of the Federal High Court, Abuja, which barred the NBC from enforcing N5 million fines imposed on several broadcast stations in 2022.
The sanctions had been issued over allegations that the stations aired documentaries on banditry and insecurity considered by the commission to be capable of undermining national security.
The affected broadcasters included Multichoice Nigeria Limited, owners of DStv, TelCom Satellite Limited, Trust TV Network Limited and NTA StarTimes Limited.
The suit was instituted by Media Rights Agenda (MRA), which challenged the legality of the fines imposed by the commission.
In her ruling, Justice Inyang pointed to a discrepancy in the appeal documents, noting that the respondent before the Federal High Court was listed as the “National Broadcasting Commission,” while the notice of appeal identified the appellant as the “Nigerian Broadcasting Commission.”
According to the court, the inconsistency was substantial enough to deprive it of the jurisdiction required to entertain the appeal.
“The notice of appeal is the foundation of an appeal and a condition precedent to the exercise of appellate jurisdiction by this court,” the judge held.
Consequently, the appeal was struck out without consideration of the substantive issues raised by the commission.
The ruling represents another setback for the NBC in its efforts to defend its authority to sanction broadcast organisations through administrative fines.
In April 2026, the Court of Appeal similarly dismissed a separate appeal by the commission against another judgment that restricted its powers to impose fines on broadcasters.
Earlier, in May 2023, the Federal High Court in Abuja ruled that the NBC lacked the judicial authority to impose penalties on media organisations without recourse to the courts.
The controversy over the commission’s sanctioning powers dates back to March 2019 when the NBC imposed N500,000 fines on 45 broadcast stations for alleged violations of the Nigerian Broadcasting Code during the general elections.
At the time, the then Director-General of the commission, Is’haq Kawu, said the sanctions were imposed for ethical breaches and violations of broadcasting regulations.
Legal analysts say the latest judgment reinforces previous court decisions limiting the commission’s authority to impose fines on broadcasters without judicial intervention.
Nigeria has launched FreeTV, a broadcasting platform, designed to provide households across the country with free access to digital broadcasting, improved picture quality, and a wide range of local and international content without subscription fees.
The announcement was made in a post on the official X handle of the Presidency, describing the initiative as part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises inclusion, expanded access to opportunities, job creation, support for local enterprise and the use of technology to improve daily life for citizens.
According to the statement, FreeTV forms part of Nigeria’s Digital Switch-Over (DSO) programme and is intended to ensure that no Nigerian is excluded as the country transitions fully from analogue to digital broadcasting.
The platform will offer access to more than 100 national, regional and state-owned channels, covering news, sports, films, music, children’s programming, educational content, as well as dedicated Yoruba, Hausa and Igbo language channels.
The Presidency noted that the service will be accessible through satellite, terrestrial transmission and a dedicated FreeTV mobile application, enabling coverage for users in urban centres, rural communities and previously underserved areas that were not fully captured in earlier DSO pilot phases.
It also clarified that Nigerians will not need to purchase new television sets to access the service. Existing televisions can work with compatible DVB-T2 or DVB-S2 decoders, while users with already compatible free-to-air devices may not require additional equipment.
Speaking ahead of the launch, Charles Ebuebu, director-general, National Broadcasting Commission (NBC), said the initiative reflects the administration’s broader digital inclusion strategy.
“FreeTV speaks directly to President Bola Ahmed Tinubu’s vision of Renewed Hope towards expanding access, creating opportunity and ensuring that every Nigerian, regardless of location or income, can benefit from the digital economy. With FreeTV, families across Nigeria can enjoy quality digital television without a monthly subscription, while our local content producers, technicians and young creatives gain new platforms and new jobs,” he said.
The statement added that the platform will also strengthen Nigeria’s creative and broadcast industry through regional production hubs in Lagos, Abuja, Port Harcourt, Enugu, Kano and Benin, creating employment opportunities for content creators, editors, camera operators, sound engineers and other media professionals.
The Presidency further disclosed that the final analogue switch-off remains scheduled for December 31, 2028, urging Nigerians to begin preparations by confirming decoder compatibility and downloading the FreeTV mobile application ahead of rollout.
Stakeholders in Nigeria’s broadcasting industry have endorsed a hybrid digital broadcasting model that combines Digital Terrestrial Television (DTT), Direct-to-Home (DTH) satellite services, and digital application-based platforms for the country’s Digital Switch Over (DSO) programme,
The resolution was reached at a high-level stakeholder meeting convened by the National Broadcasting Commission (NBC) under the supervision of the Federal Ministry of Information and National Orientation at NICON Luxury Hotel, Abuja.
The meeting, chaired by Alhaji Mohammed Idris, minister of Information and National Orientation, brought together regulators, broadcasters, signal distributors, set-top box manufacturers, content producers, satellite operators, and industry associations to chart a sustainable path for Nigeria’s long-delayed digital migration project.
Addressing stakeholders during the closed-door engagement session, the minister described the meeting as a collaborative effort aimed at finding practical solutions to challenges facing the DSO project.
“This engagement is a family discussion aimed at finding practical solutions to ensure the success of the Digital Switch Over project. Government has no hidden agenda, and all decisions will be guided by national interest, stakeholder inclusion, and the long-term sustainability of the broadcasting industry,” he said.
The minister acknowledged concerns raised by industry players regarding stakeholder consultation and participation in previous phases of the project, noting that while broader engagement should ideally have commenced earlier, there remained an opportunity to build consensus and move forward together.
“While there may be differing views on implementation approaches, there is broad agreement that Nigeria must complete its digital migration journey. We must work collectively to achieve this national objective,” he stated.
Mr Charles Ebuebu, director general, NBC, described the stakeholder meeting as “iconic”, noting that it marked a turning point in Nigeria’s efforts to complete the digital migration.
He said the country had spent over a decade on the DSO journey, missing several deadlines, but expressed optimism that a clear implementation plan was now being developed.
Ebuebu said the commission, in collaboration with stakeholders, is working toward a sustainable model that ensures return on investment for industry players while delivering value to the nation.
He said that the outcome of the consultation process would produce a unified framework for implementation and communication going forward.
Mrs Jane Nkechi Egerton-Idehen, managing director, Nigerian Communications Satellite (NIGCOMSAT), said the DSO initiative forms part of broader federal interventions aimed at building a sustainable broadcasting ecosystem.
She explained that government investments had supported satellite coverage, national call centres, and regional production studios across the country.
According to her, the objective is to address gaps in content distribution and ensure that Nigerian broadcasting reflects the country’s linguistic and cultural diversity.
“We are not departing from the original plan. We are innovating on how it is implemented,” she said.
She also highlighted efforts to expand access to production facilities across geopolitical zones to support content creators and reduce dependence on major urban centres.
The meeting attracted 128 participants, including the Director-General of the NBC; Permanent Secretary of the Federal Ministry of Information and National Orientation, Dr. BRM Ukire; Director-General of the Nigerian Television Authority (NTA), Abdulhamid Dambos; Director-General of the Advertising Regulatory Council of Nigeria (ARCON), Dr Olalekan Fadolapo; Chairman of the Broadcasting Organisations of Nigeria (BON), Chief Tony Akiotu; Managing Director of NIGCOMSAT Ltd, Mrs Jane Nkechi Egerton-Idehen; and representatives of licensed broadcasters and other industry stakeholders.
During deliberations, stakeholders agreed that the DSO project remains both necessary and desirable for Nigeria, emphasising that the transition should prioritise national interest, industry sustainability, local content development, local manufacturing, and job creation.
Among the key resolutions reached was the affirmation that Digital Terrestrial Television (DTT) remains a critical component of the DSO framework and should not be discontinued. Participants also agreed on the need to reconstitute the DigiTeam implementation platform to provide a structured mechanism for consultation, collaboration, and industry participation.
Stakeholders further called for stronger engagement between regulators and industry players, with an agreement that stakeholder meetings would be held at least quarterly to ensure continuous alignment on implementation strategies.
The meeting also welcomed ongoing efforts by the NBC and ARCON to develop a sustainable business model aimed at improving audience measurement systems, strengthening advertising revenue generation, and enhancing the long-term viability of broadcasting organisations.
In addition, stakeholders were assured by NIGCOMSAT of the reliability of satellite infrastructure supporting the DSO platform.
The company disclosed that backup arrangements with alternative satellite operators were already in place to guarantee uninterrupted service and eliminate the need for subscriber dish realignment.
As part of the agreed next steps, the Federal Government, through the Ministry of Information and National Orientation, will reconstitute the DigiTeam stakeholder platform, while the NBC will continue consultations with set-top box manufacturers and other industry stakeholders to address concerns relating to existing investments and future participation in the digital broadcasting ecosystem.
The stakeholders expressed confidence that the renewed collaborative approach would accelerate Nigeria’s digital migration, improve broadcasting services, expand audience reach, attract investment, create jobs, and deliver greater value to Nigerian consumers.
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