e-Commerce is getting a steady lift in Nigeria underscored by rising uptake of smartphones and increasing broadband penetration, according to the National Information Technology Development Agency (NITDA).
Broadband penetration is steadily approaching 50% and a greater percentage of Nigerians are getting to own smart phones in a way that has spiked the market for e-Commerce portals.
e-Commerce in Nigeria is projected to have a steady annual growth of 14 percent, said the National Coordinator, Office for Nigeria Content Development in ICT (ONC), Mr. Kasim Sodangi. He was at the 2020 e-Commerce and Marketing Online Seminar for Micro, Small and Medium Enterprises (MSMEs).
The seminar was organized by Bureau of Foreign Trade, Ministry of Economic Affairs, Taiwan and Nigerian Export Promotion Council (NEPC).
Sodangi said the use of smartphones, increasing broadband penetration, social media, relatively safe e-payment systems are some of the factors that are contributing to the steady growth of e-Commerce in Nigeria.
While quoting statistics from the National Bureau of Statistics, (NBS) and NITDA, he maintained that the ICT’s enabled businesses contribute 8.4 percent to National Gross Domestic Product (GDP).
His words: “NITDA revealed that e-Commerce opportunities that exists in Nigeria are mostly retail component with estimated $12 billion according to Mckenzie, and it has been projected to reach about $75 billion by 2025.
“The agency said the context of e-Commerce in Nigeria is determined by the population which is about 200 million with 132 million of them on the internet. This, it said will be increased further by internet penetration which is expected to be at 65.2% by 2025.
The agency stated that 62 percent of Nigerians that are under 24 have basic literacy and are acquiring digital skills. It stated that there are about 300,000 online purchases daily compared to the previous 30,000 witnessed in previous years.
“NITDA revealed that 25-35 are the most active shoppers or active groups in e-Commerce in Nigeria and 69% of e-Commerce activities in Nigeria are on mobile devices.”
Sodangi affirmed that going by trends, social media may become the most dominate form of e-Commerce adding: “Social media is a critical stakeholder in our journey to deepen e-Commerce in Nigeria.”
The Executive Director, Nigerian Export Promotion Council (NEPC), Mr. Segun Awolowo ,said e-Commerce business in Nigeria experienced a surge at the emergence of COVID-19 because people were still able to carry out businesses without making contact.
The Director General BOFT Taiwan, Cynthia Kiang, said the seminar is aimed at fostering a better trade relationship between Nigeria and Taiwan in terms of e-Commerce.