E-Business
Why eCommerce Remains Largely Traditional in Nigeria
Despite the growing appeal of e-commerce, available data shows that the shopping behavior of majority of Nigerians is still largely traditional – with many preferring to see, touch or experience the product in action before making the buying decision.
In this piece, Yudala – Nigeria’s leading online and offline retail chain – dissects the e-commerce revolution and why most Nigerians remain slow in changing their traditional shopping habits.
E-commerce has become a thriving global industry. A recent report released by the Oxford Business Group revealed that retail sales hit a whopping $22b figure globally in 2016, with online shopping figures accounting for a major part of this outlay.
In advanced climes where access to the internet and of course, literacy levels stand at appreciable levels, e-commerce has become a lifestyle for many.
Interestingly, global retail sales, of which e-commerce makes up a major part, is projected to rise further to an estimated 27 trillion dollars by 2020.
Nigeria has also been bitten by the e-commerce bug. This has been made possible by the proliferation of online stores all competing for the attention of shoppers, many of whom are eager to jump on the ease and convenience of the e-commerce train.
Nevertheless, e-commerce is still at the rudimentary stage in Nigeria as the pace of adoption and acceptance is decidedly slow.
Despite the huge strides recorded in the Nigerian e-commerce landscape – especially with the massive awareness for globally celebrated shopping festivals such as Black Friday and Cyber Monday, among others – the average Nigerian is still an unrepentant traditional shopper.
In spite of the massive hype and growing status of e-commerce in Nigeria, you are better off convincing the average Nigerian to make the final buying decision when you can provide him or her with an opportunity to ‘experience’ the product before parting with hard-earned money.
This often involves visiting a physical or brick-and-mortar store location to interact with sales attendants and getting a chance to see a demonstration of the item before the sale is closed.
This traditional shopping behaviour goes a long way to justify the unique Yudala model of combining an online store with physical offline stores located nationwide. Cases abound of most walk-in customers actually admitting to having checked out a particular product online but still preferred to physically visit the store to see the product before purchase.
A few factors are responsible for this largely traditional approach to the e-commerce revolution in Nigeria:
Trust remains a major issue: Many Nigerians live in constant dread of online fraud and will do anything to avoid using their debit card to process payments electronically.
According to data from the Nigerian Inter-Bank Settlement System (NIBSS) the year 2014 saw 1,461 reported cases of electronic or e-fraud, with actual losses grossing N6.216 billion.
In 2015, about 946 attempted e-fraud cases were also recorded by banks, Other Financial Institutions (OFIs) and Mobile Payment Operators (MPOs), resulting in an estimated loss of N5 billion.
Recently, the Hon. Minister of Communications, Barr. Adebayo Shittu indicated that about N78 billion is lost yearly in Nigeria to all forms of cybercriminal activities. This reality has stunted the growth of e-commerce in Nigeria.
Internet access is elusive for many: It is an open secret that e-commerce is driven by access to the internet. However, internet access for many in this part of the world is an expensive venture. Worse still, the number of internet users seems to be declining.
Going by the most recent statistics released by the Nigerian Communications Commission (NCC), the number of internet subscribers in Nigeria’s telecommunications networks declined to 91, 274,446 in January 2017.
According to the figures released, internet users dropped to 91,274,446 in January as against 91,880.032 users recorded in December 2016, showing a decline of 605,586.
This is one of the major reasons why the average shopper remains seemingly stuck in his largely traditional shopping ways.
Unsavoury experiences from delivered orders: The e-commerce experience in Nigeria has been stalled by the action of some online retailers who end up disappointing the customer with the delivery of items different or inferior in quality from the one seen or ordered online.
In such a case, the customer has to bear the inconvenience of having to either navigate the thorny process of seeking a refund or waiting an extra lengthy number of days to get the right item. This is why ensuring that “What you see is what you get” remains a unique selling point in the e-commerce market.
Millions remain underserved or unreached in the hinterlands: A recent report revealed that the Nigerian e-commerce industry recorded a handsome $1.9b figure in 2016 and the figure is expected to reach an estimated $3.9b in 2020.
However, e-commerce in Nigeria remains a predominantly urban phenomenon. For many in the hinterlands and rural communities hobbled by the absence of the most basic infrastructure, e-commerce will remain an abstract concept for a long time. To reach these ones, citing a physical store not too far from their location remains the best bet.
Seeing and touching sells quicker than just seeing: Ever wondered why many shoppers with access to the internet still end up carrying out most of their e-commerce purchases in physical stores?
For many Nigerians, seeing and being able to touch the item beats just being able to see it on the screen of a mobile phone or laptop. Majority still want to see, touch, feel and/or experience a product before they part with their money.
Nothing can replace the plain old physical contact: Commerce in Nigeria originated from a traditional stand-point. Nothing feels better than haggling with a seller face-to-face and eventually securing a bargain.
The glint in the eyes of the buyer and renewed spring in the steps are a sight to behold. For now, at least, e-commerce will struggle to completely wipe away this culturally-ingrained shopping behaviour.
Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.
The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.
The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.
The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.
HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.
The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.
According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.
It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.
HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.
The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.
It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.
According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.
It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.
The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.
Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).
The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.
However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.
In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.
Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.
The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.
Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.
Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.
Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.
Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.
At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.
Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.
Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.
In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.
While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.
Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.
Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.
“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.
To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.
If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.
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