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
Enugu State Government has approved an increase in the minimum wage for workers of the Enugu State University of Science and Technology (ESUT) from N32,000 to N82,000 monthly, effective Sept. 1, 2026.
The approval was contained in a letter dated Aug. 11, 2026, signed by the Secretary to the Enugu State Government, Prof. Chidiebere Onyia, and addressed to the Accountant-General of the state.
According to the letter, the decision followed a report submitted by the Joint Action Committee on Trade Union (JACTU) at ESUT on issues surrounding a one-month strike ultimatum issued by the university’s unions.
The state government also approved an across-the-board salary increase of N50,000 for all other categories of staff at the university.
Onyia directed the Accountant-General to fully implement the approval of Gov. Peter Ndubuisi Mbah.
The directive referenced an earlier Government House letter dated Aug. 7, 2026.
A copy of the approval was also forwarded to the Vice-Chancellor of ESUT, Prof. Aloysius-Michaels Okolie, for information and necessary action.
Speaking on the development at the 278th Regular Meeting of the University Senate on Wednesday, Okolie said the university was continuing discussions with the state government to secure improved welfare for its workforce.
He disclosed that governors in the South-East had agreed to provide at least a 20 per cent salary increase for workers in state-owned universities across the region.
The vice-chancellor, however, noted that individual governors could approve salary increases above the regional benchmark.
Okolie thanked Gov. Mbah for implementing the N80,000 minimum wage and for his interventions in infrastructure and academic development at the university.
He also appealed to union leaders to allow the university management to conclude its ongoing negotiations with the state government on staff welfare.
The vice-chancellor said continued engagement between the university management, government and labour unions remained important to resolving outstanding welfare issues and sustaining industrial harmony at ESUT.
David Adeleke, popularly known as Davido, has declared that no Nigerian artiste has more hit songs than him, challenging his peers to a hit-for-hit contest with $1 million at stake.
The Afrobeats superstar, made the declaration during a recent online interaction with streamer Davrel, where he expressed confidence in the strength of his music catalogue.
Key Highlights:
- Davido says he is ready to stake $1 million in a hit-for-hit battle.
- The singer claims no Nigerian artiste has more hit songs than him.
- His challenge could reignite comparisons with Wizkid, Burna Boy and Olamide.
- No major artiste mentioned in the debate had accepted the challenge as of the time of filing.
“I will put up a $1M on the table. I will do it versus anybody. A million dollars cash, nobody has more hits than me,” Davido said.
The declaration is likely to renew the long-running debate among Afrobeats fans over which Nigerian artiste has the strongest catalogue of commercially successful songs.
Davido, whose career spans more than a decade, has recorded several commercially successful songs, including Fall, If, FIA, Risky, Blow My Mind, Unavailable, Assurance and Feel.
His claim could set up a potential catalogue battle with some of Nigeria’s biggest music stars, including Wizkid, Burna Boy, Olamide, Runtown and Tekno.
The statement also recalls the hit-for-hit debate involving Burna Boy during the COVID-19 lockdown in 2020.
Burna Boy had called for a competitive song battle, while former Mavin Records artiste Reekado Banks reportedly expressed interest. Burna Boy, however, rejected him as an opponent.
Six years later, Davido’s $1 million challenge has brought the idea back into the spotlight.
As of the time of filing, none of the major artistes indirectly referenced by Davido had publicly accepted the challenge.
Whether the proposed contest becomes reality remains uncertain.
For now, Davido has made his position clear and is willing to attach $1 million to his claim that no contemporary Nigerian artiste has a stronger catalogue of hit songs.
Nigeria’s pay-TV industry is facing one of its toughest periods in years as consumers increasingly migrate from conventional antenna and decoder-based television services to cheaper, more flexible and on-demand streaming platforms
The shift is putting pressure on established operators, such as MultiChoice, owners of DStv and GOtv; StarTimes and other traditional pay-TV providers, whose business models have long depended on recurring monthly subscriptions as per report by Business Hallmark.
According to Business Hallmark, the changing consumer behaviour is being driven by a combination of factors, including demographic transition, rising subscription costs, declining household purchasing power, improved internet access and the growing popularity of streaming services that allow viewers to pay for specific content or watch programmes at their convenience.
Streaming platforms are steadily expanding their appeal, offering consumers access to movies, sports (especially football matches and wrestling bouts), local content and international programs through smartphones, smart televisions and other internet-enabled devices.
Also, the proliferation of affordable data packages and connected devices has lowered the barrier to entry, allowing consumers to bypass traditional decoders altogether and consume content directly online.
Three of the major factors behind the changing behaviour of Nigerian television consumers are growing internet access, economic squeeze and changing demography.
Pay-TV subscriptions, once regarded by many households as a relatively affordable source of entertainment, are now competing with several other demands on disposable income.
For instance, entertainment spending are increasingly being subjected to tougher scrutiny with household budgets under pressure from food, tuition, transportation, electricity, housing and other essential costs.
Business Hallmark checks revealed that frequent price reviews by MultiChoice Nigeria’s have pushed the firm’s products beyond the reach of many Nigerians.
One of its products, GOtv, initially designed for average Nigerians, has six packages, namely GOtv Supa Plus, GOtv Supa, Gotv Max, GOtv Jolli, GOtv Jinja and GOtv Smallie.
GOtv Supa Plus with over 85+ channels currently goes for a monthly subscription fee of N16,800; GOtv Supa N11,400; Gotv Max N8,500; GOtv Jolli N5,800; GOtv Jinja N3,900, while GOtv Smallie subscribers choose between the N1,900/monthly, N5,100/quarterly and N15,000/annually options.
Similarly, following multiple tariff reviews, DStv Premium currently goes for N44,500 monthly; DStv Compact Plus N30,000; DStv Compact N19,000; DStv Confam N11,000; DStv Yanga N6,000 and DStv Padi N4,400.
On the other hand, StarTimes, which serves its customers through antenna signal transmission and satellite transmission, has only three bouquets, Nova, Basic, and Classic.
While Classic, the most expensive bouquet on the StarTimes’ shelf currently cost N6,000 monthly, Basic costs N4,000, while Nova costs N2,100.
While speaking to our correspondent on the major shift, some consumers explained that the choice is no longer between different pay-TV providers but between maintaining a television subscription and cancelling it altogether.
Eighty-two Nigerians, representing 68% of the 120 Pay-TV subscribers, who participated in an online survey conducted by Business Hallmark, said they opted for less expensive and more flexible alternatives, including YouTube and a growing range of streaming platforms, using smartphones, laptops, smart televisions and other internet-enabled devices to access entertainment.Geographic Reference
According to the respondents, the shift towards streaming lies partly in its flexibility. Instead of waiting for a program to be broadcast at a scheduled time, viewers now search for specific films, series, sporting events or other contents, which can be watched immediately, or downloaded to be watched or listened to later.
“I now watch contents when I want, across multiple devices, without necessarily being tied to the traditional channel and time-based television experience”, said Tolu Olamiti, an accountant in an audit firm in Lagos.
Another factor that is fueling the exodus from pay-TV model is the growing youth population. Checks revealed that online streaming is particularly attractive to phone-savvy younger viewers, whose television consumption habits are markedly different from those of previous generations.
While underage children watch cartoons and educational programs mostly from their parents or older siblings internet-enabled gadgets, teenagers and adults now watch news, sports programs and films through live streaming or download preferred programs to be watched later.
“With N200 data, I can download several new films to be watched at my convenience, instead of the old films, which providers always repeat on their channels. I also listen to music through out the day without worrying about electricity as my phone can go 2 days after full charge”, said Chukwuemeka Ibe, a student of Lagos State University (LASU).
In the same vein, access to fast and cheap internet plans is helping to drive the streaming surge. For instance, a subscriber can get a daily 1G data plan on the MTN Nigeria platform for just N200. This data plan can be used to download up to 1,000MB movies, or for streaming several hours of music online.
According to official statistics from the Nigerian Communications Commission (NCC), internet consumption in Nigeria reached 13.2 million terabytes in 2025, representing a 35 per cent increase from 2024, while average monthly data usage per active subscriber increased from 3.3 gigabytes in January 2023 to 7.4 gigabytes by May 2025.Geographic Reference
The NCC data indicates growing reliance on mobile internet services and digital platforms across the country with active internet subscriptions rising from 169.3 million in January 2025 to 182.2 million by January 2026.
Also, active internet subscriptions also surpassed 142 million.
Before the advent of internet, traditional pay-TV operators had ruled the television viewing industry largely through channel packages, exclusive content and decoder penetration. However, the rise of streaming has fundamentally altered the competitive landscape of Nigeria’s entertainment industry.
Fueled by the spread of smart devices and improved internet connectivity, streaming companies have been able to compete with traditional TV and radio providers through original programming, on-demand access, convenient timing and increased personalized viewing experiences.
A subscriber, who previously needed a satellite dish or digital terrestrial television decoder to access premium entertainment, can now use a smartphone or smart television and an internet connection.
The proliferation of affordable smartphones has further accelerated the process. Mobile phones have become entertainment devices for millions of Nigerians, particularly younger consumers, who spend more time watching short-form videos, movies and online programs than conventional television.
Also, social media platforms have become important competitors for consumers’ limited attention. YouTube, Facebook, Instagram, TikTok and other digital platforms provide enormous volumes of free or relatively inexpensive video content, forcing traditional broadcasters to compete not only for subscribers but also for viewers’ time.
Several pay-TV subscribers, who spoke to our correspondent on the matter, said providers can no longer justify the traditional model of paying a fixed monthly fee for hundreds of channels they rarely watch.
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