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The Nigerian e-commerce industry is booming, and mobile technology, along with the rise of online payment systems, is driving this growth. Yuliy Shenfeld, the Director of African Operations at Jiji Africa, highlighted that the sector’s expansion is directly tied to the increasing use of smartphones and mobile devices for online shopping.
According to Statista, Nigeria’s e-commerce market is expected to hit $9.02 billion in 2023, growing by 11.74% annually, and is projected to reach $14.06 billion by 2027.
Shenfeld acknowledged the challenges that still face the industry, such as poor infrastructure, unreliable payment systems, and a lack of trust in online transactions. However, these obstacles have not stopped the market from growing.
“E-commerce can play a major role in Nigeria’s economic development, offering more opportunities for businesses and creating jobs in areas like software development, logistics, and customer service. It will help Nigeria become more competitive on the global market,” Shenfeld said.
With the rise of mobile devices, more Nigerians are turning to online shopping. The Nigerian Communications Commission (NCC) reports that 89% of internet users make online purchases, and another 24% plan to do so soon.
Shenfeld also pointed out that trust in online payment platforms is growing, making digital transactions easier and more secure. As more Nigerians become comfortable with paying online, this trend is expected to continue in 2023.
Additionally, the rise of social media commerce is expected to further grow the e-commerce market. According to Weetracker.com, global social commerce is set to reach $604.5 billion by 2027, with social media becoming a popular platform for consumers to discover and buy products.
To stay competitive, e-commerce companies are focusing on offering a smoother, more personalized shopping experience, from browsing to delivery. Shenfeld noted that this trend continues in 2023, as businesses aim to stand out and build customer loyalty.
