Nigeria’s e-commerce transactions are expected to surpass $33 billion in 2026 from the $15 billion recorded in 2023 in business-to-consumer sales, according to PYMNTS Intelligence.
The data platform in its global e-commerce report 2025 said that despite online sales accounting for just 6 percent of total retail sales—a relatively modest figure by global standards—Nigeria’s share is among the highest in the Middle East and Africa region.
“Over half (56 percent) of micro, small, and medium enterprises (MSMEs) in Nigeria rely solely on social media for online sales, while 19 percent combine social media with other platforms to reach customers.”
The report highlighted that payment methods in Nigeria’s e-commerce sector reflect a mix of traditional and digital preferences. It said, “Account-to-account (A2A) payments, cash on delivery, and debit or credit cards remain the predominant methods.
“However, the use of e-wallets is on the rise, with projections indicating they will account for 22 percent of e-commerce payments by 2027, up from 11 percent in 2023. Mobile payment providers such as SmartCash and digital wallets like MoMo, JumiaPay, and Paga are driving this shift.”
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Meanwhile, international payment activities have also gained traction, with a 31 percent increase reported in the first half of 2024. Partnerships like the collaboration between Fidelity Bank and Mastercard are helping to address cross-border payment demands.
Additionally, the report said Mastercard’s launch of a contactless payment solution and virtual card initiatives by Funds & Electronic Transfer Solutions in partnership with UPI exemplify the country’s push toward modern payment infrastructures.
Nigerian consumers currently spend an average of $68 annually on e-commerce transactions, a figure expected to double to $137 by 2026, according to PCMI estimates. However, cash remains a significant payment method, representing 23 percent of online sales—one of the highest shares in the Middle East and African markets.
The PCMI report highlighted that Jumia is the biggest player (as of e-commerce revenue) among Nigeria’s top online stores, followed by Slot and Ajebo Market. Other popular marketplaces include Konga, DealDey, PayPorte, and Kilimall.
A GSMA e-commerce survey in 2023 revealed that 56 percent of MSMEs in Nigeria sell online only through social media, while up to 19 percent use social media plus another platform such as a website or a marketplace. The situation is similar in other African countries like Kenya and Egypt.
However, logistics and infrastructure pose significant challenges for e-commerce development in Nigeria. Poor road networks, inconsistent electricity supply, and high fleet costs due to vehicle importation all contribute to these barriers, resulting in high delivery costs and longer delivery times.
“To mitigate these issues, e-commerce companies in Nigeria should partner with reliable courier services that understand the local scenario. Additionally, establishing fulfillment centers strategically can help streamline operations and reduce delivery times,” the report said.
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