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
Economic and Financial Crimes Commission (EFCC) has partnered with the National Space Research and Development Agency (NASRDA) to deploy advanced space and geospatial technologies in investigations and asset management.
Ola Olukoyede, executive chairman of the EFCC,
The move is expected to deepen transparency, strengthen asset recovery and curb economic sabotage according to a statement by Dele Oyewale, head, Media and Publicity, EFCC.
He said that the partnership was formalised through the signing of a Memorandum of Understanding (MoU) on Thursday in Abuja
The agreement is aimed at strengthening inter-agency collaboration, particularly in the areas of investigations, asset tracking and fraud risk assessment, marking a new phase of cooperation between the anti-graft agency and Nigeria’s space research and regulatory authority.
Speaking at the signing ceremony, Ola Olukoyede, executive chairman of the EFCC, described the agreement as a practical demonstration of the power of collaboration among government agencies.
He noted that closer cooperation would make it easier for institutions to effectively deliver on their statutory mandates.
According to Olukoyede, the MoU clearly defines the responsibilities of both agencies and establishes a framework for sustained cooperation.
He disclosed that a special monitoring and implementation team would be constituted to ensure the effective operationalisation of the agreement and to periodically review its impact.
“We will put a team together that will monitor the operationalisation of this MoU and also review the effectiveness of the platform from time to time.
“When agencies work together in the spirit of collaboration, it not only enhances efficiency but also encourages other ministries, departments and agencies to explore similar partnerships in the overall interest of national development”, he said.
Explaining the specifics of the partnership, the EFCC chairman said NASRDA would provide advanced technological tools to boost the Commission’s investigative capacity and asset tracking, while the EFCC would deploy its expertise to support the agency in fraud risk assessment.
“We will support you in the area of fraud risk assessment, and you will support us in promoting our investigative capacity.
“Where our eyes cannot get to, with the aid of your technology, we will be able to get there”, Olukoyede said.
He noted that the collaboration would be particularly beneficial to investigations into illegal mining activities, which have been linked to economic sabotage and rising insecurity in parts of the country.
“With the technology you are going to support us with, we will be able to identify some of these areas,” he added.
Olukoyede further expressed optimism that the partnership would significantly enhance the EFCC’s asset management processes, stressing that asset recovery remains one of the core pillars of the Commission’s mandate.
He explained that recovered assets are scattered across the country and exist under different legal statuses, including interim and final forfeiture.
“In some of these places, we may not have enough personnel to physically secure the assets. But with your support, we will be able to deploy geospatial technology and asset tagging devices to monitor both movable and immovable assets in a transparent and accountable manner”, he said
In his remarks, Matthew Adepoju, director-general and chief executive officer of NASRDA, welcomed the partnership, describing the MoU as a major milestone in the pursuit of justice and regulatory compliance within Nigeria’s space ecosystem.
Adepoju stressed that space-related activities are strictly regulated in developed economies and should be treated with similar seriousness in Nigeria, particularly in view of the potential misuse of satellite assets.
“You cannot go anywhere in Europe, continental America or the Far East and be doing business in the space ecosystem without the country ensuring that you are doing the right thing.
“We know for a fact that some satellite assets are being used negatively in driving insecurity in the country”, he said.
He also raised concerns over the use of satellite-mapped data on Nigeria’s natural resources to aid illegal activities, especially illegal mining, which he identified as one of the drivers of insecurity.
DalaHill Law Practice and the Bank of Agriculture (BoA) have signed a Mutual Accountability Framework (MAF), marking a milestone in the launch of a climate finance initiative funded by the African Climate Foundation (ACF) and valued at US$100,000.
According to a statement by the firm, the signing took place during a kickoff ceremony at the BoA headquarters in Abuja and formalised the roles, responsibilities and shared commitments of both institutions in delivering the project. The framework was signed by Ayo Sotinrin, BoA Managing Director, and Mohammed Hamza, Managing Associate at DalaHill.
The ACF-funded initiative is designed to support BoA’s institutional transition towards climate-aligned agricultural finance. Central to the programme is the establishment of a Clean Energy Delivery and Innovation Unit (CEDIU), a dedicated function that will integrate climate risk considerations, environmental data and sustainability principles into the bank’s strategy, operations and investment decision-making.
Under the initiative, BoA will also be supported to develop Clean Energy Access Systems and Climate Finance Development Frameworks, alongside a pipeline of bankable, climate-aligned agricultural projects.
These projects are expected to attract domestic and international capital into the sector, contributing to efforts to bridge Nigeria’s estimated $247.3 billion financing gap for its green energy transition.
Speaking on behalf of DalaHill, Mohammed Hamza described the initiative as a pivotal intervention in Nigeria’s agricultural and climate finance landscape. He said the firm is acting as a trusted adviser, working with institutions to deliver catalytic and transformative solutions.
According to him, DalaHill is deploying a multidisciplinary technical team to support BoA’s transition into a climate-aligned institution capable of attracting finance for scalable, investment-ready agricultural projects.
He highlighted the strategic importance of the project, noting that while ACF has traditionally focused on renewable energy, climate alignment within the agricultural sector is critical to driving Nigeria’s broader energy transition. He added that the initiative represents ACF’s first climate finance grant promoting agriculture in Nigeria.
In his remarks, Sotinrin expressed appreciation to the project partners and acknowledged longstanding gaps within Nigeria’s agricultural finance ecosystem. He reaffirmed BoA’s commitment to driving systemic change by attracting climate-aligned expertise, strategic funding and increased national and international attention to the sector.
Sotinrin also noted that the initiative aligns with the Federal Government’s climate and sustainability agenda, referencing Nigeria’s participation at an ongoing global climate sustainability conference in Abu Dhabi.
He further highlighted strong government backing for BoA’s transformation, including presidential approval in October 2024 of a US$1 billion recapitalisation plan aimed at strengthening the bank’s capacity to support national development.
DalaHill Law Practice is a full-service commercial law firm headquartered in Abuja, with a strong track record in advising on economically catalytic projects across sectors including energy, infrastructure, finance, trade and emerging markets.
The firm is known for structuring complex transactions, managing regulatory risk and supporting projects that promote sustainable growth and long-term economic impact in Nigeria and beyond.
Kaspersky’s new global research reveals that 65% of online shoppers believe they can detect fraud on their own, while only 42% actually use security software to protect their payments and block malicious links.
Experts consider this a major risk for online buyers. Over the past year Kaspersky identified nearly 6.7 million phishing attacks globally impersonating online stores, payment systems, and banks, with 55.6% targeting online shoppers.
As the post-holiday and summer sales season kicks off, Kaspersky conducted a survey to examine consumer cybersecurity practices employed during online shopping. The findings show that 97% of respondents demonstrate a substantial level of awareness of online security risks and implement at least some measures to safeguard their digital transactions.
However, the survey found that fewer than half the participants use dedicated security software to block phishing attempts and protect payment transactions. This concerning trend is particularly pronounced among the 55+ year old generation, with only 32% of respondents in this age group actually using security software when making online purchases.
The most commonly adopted security protocols include being vigilant about potential warning signs, such as suspicious hyperlinks or unusual website design (65%) and verifying seller authenticity (62%).
Kaspersky experts emphasise that while these practices are essential protective measures for online shopping, they constitute only foundational protection strategies rather than the comprehensive fraud prevention provided by a security solution.
Other steps that could protect online shoppers, like using a separate credit card for digital purchases or using a separate email address to register with unfamiliar online shops, were chosen by 33% and 26% of survey participants, respectively.
Meanwhile, 30% claimed to consult with friends and relatives before making a purchase. Interestingly, this option is highly popular among the younger generation, with 37% opting for it, while it is less common among older people (21%).
“Throughout the year, we’ve observed that online shoppers have consistently been one of the most desirable targets for scammers. During sales periods, their scams can become even more pervasive. Staying vigilant is crucial, but protecting yourself requires more than just awareness.
It is particularly concerning how scammers are now using AI to craft more sophisticated, targeted phishing attempts that are increasingly difficult for regular users to recognise,” comments Olga Altukhova, Senior Web Content Analyst at Kaspersky.
Sales seasons are peak times for scammers. To protect yourself against emerging threats, implement the following security practices:
– Don’t save your full credit card details on websites unless absolutely necessary.
– Consider using a separate debit card specifically for online purchases and set up transaction alerts on your bank and credit card accounts.
– Be extra cautious of “flash sales” that seem too good to be true. Watch out for websites that pressure you into making quick decisions, and be wary of sellers who refuse returns or exchanges.
– Use different passwords for each online account and enable two-factor authentication wherever possible.
– Apply a security solution with a strong anti-phishing component. For instance, Kaspersky Premium received the annual ‘Approved’ certification from the leading testing lab AV-Comparatives in 2025 for detecting 93% of phishing URLs, demonstrating outstanding anti-phishing capabilities, powered by AI technology.
– Scammers constantly evolve their methods, so staying informed about new phishing techniques can help you recognise and avoid them. The Kaspersky Security blog will help you keep your finger on the pulse of emerging cyberthreats.
The study was conducted by Kaspersky’s market research center in November 2025. A total of 3000 respondents from 15 countries (Argentina, Chile, China, Germany, India, Indonesia, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Turkey, the United Kingdom, and the United Arab Emirates) took part in the survey.
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