• Monday, May 27, 2024
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BusinessDay

‘E-commerce has potential to contribute 20% to Nigeria’s GDP’

ecommerceWith Nigeria’s increasing e-commerce space on the back of rising internet access, mobile connectivity and convenience, Nicola Martin, Co-CEO, Jumia Nigeria, foresees the market contributing up to 20 percent to Nigeria’s Gross Domestic Product (GDP).

Online shopping is becoming quite popular in Nigeria with recent report stating that the sector grew from N49.9 billion to N62.4 billion between 2010 and 2011, and to N78 billion between 2011 and 2012, representing a 25-percent increase in each period.

Martin, who was discussing e-commerce as next driver of Nigeria’s economic growth in a TV programme recently, expressed strong confidence in the sector’s potentials further facilitated by Central Bank of Nigeria’s (CBN) cashless policy, which seeks to reduce the use of physical cash and increase the adoption of various electronic portals for financial transactions.

Assessing the 5-10 percent e-commerce contribution to other countries’ GDP, Martin said in the case of Nigeria, e-commerce would soon be contributing up to 20 percent to the country’s GDP in terms of growth level.

He said e-commerce had grown tremendously, with companies such as Jumia seeing growth rates of 10 times every year, adding that the growing number of online players was good for the e-commerce industry because it would help the industry to grow as well as assist in educating Nigerians about the convenience of online shopping.

Online stores in Nigeria, according to a recent survey, record over $2 million worth of transactions per week, approximately N1.3 billion per month, and take up to 500 business orders per day.

According to the survey, the Nigerian formal retail industry has evolved significantly over the years, with investments in the sector growing to over N205.4 billion in the last two years.

From buying and selling at open-air markets (in both cities and rural areas), Nigerians are increasingly patronising convenience stores, supermarkets and online shops.