Xin Ou
Research expert covering Greater China
E-commerce in Nigeria - statistics & facts
Nigeria's digital landscape is flourishing. The country has one of the biggest internet economies in Africa. With the continent’s largest population and one of the youngest worldwide, Nigeria presents a vast digital audience. Nigeria has one of the best network coverages, as well as good infrastructure for mobile connectivity in Africa. Internet penetration is around 46 percent and is projected to increase steadily. Estimates from different sources put the number of smartphone users in Nigeria at roughly 25 and 40 million. In fact, mobile devices are much more frequently used to access the internet than desktop devices. According to latest available data, over 84 percent of internet access was recorded on mobile devices, whereas this share was even higher when it came to online marketplace visits.
Key players in Nigeria
The 2019 B2C index value for e-commerce in Nigeria stood at 53.2 points, the fourth highest in Africa. The B2C E-commerce index measures an economy’s preparedness to support online shopping by taking different indicators into account. Nigeria is among the African countries with the largest number of online marketplaces. The most popular marketplace in terms of visitor numbers is by far Jumia. Jumia is based in Lagos and operates in more than 10 African countries. Other popular online marketplaces in Nigeria are Jiji, Konga, and Cheki. Konga.com, for instance, recorded some 28.9 million web visitors in 2020, which consisted mostly of a very young audience. Marketplaces for cars are very popular. Some 14 percent of all online marketplaces present in the country specialized in vehicles.How to embrace Nigeria's digital potential
According to recent reports, several factors are restraining the digital economy in Nigeria from fully embracing its potential. Broadband coverage in rural areas is still poor and far from the dynamic reality of large urban cities like Lagos. Additionally, there is a lack of adequate equipment to fully use the internet, like computers or mobile devices. In order to develop its digital potential and create millions of jobs, the country needs, among other things, to further invest in infrastructure, improve skills, and implement investment opportunities. Moreover, another aspect which might influence digital shopping in Nigeria, as well as in the rest of Africa, is the low penetration of online payments. Only 1.7 percent of men and 1.6 percent of women in Nigeria own a credit card, while some 30 percent make purchases or pay bills online. However, many digital platforms in Nigeria accept cash as a payment method, known as “cash-on-delivery”, which is very popular among customers.Fastest growing e-commerce sectors
Despite the low popularity of credit cards and digital payments, e-commerce has been gradually rising considerably in Nigeria, especially in 2023. The most valuable e-commerce sector in Nigeria was electronics, which achieved more than 2.5 billion U.S. dollars in consumer spending. In contrast, e-spending on beverages decreased by 10 percent, whereas the food sector experienced a decline of around seven percent. Overall, the number of visitors to online marketplaces grew constantly, exceeding 242 million in 2020. In addition, the results of different surveys conducted by Statista in 2023 show that Nigerians have a very positive attitude towards online shopping. Clothing, shoes, and bags and accessories were the most common items purchased online among Nigerian respondents.
