Online shopping has the potential to contribute about 20 percent of Nigeria’s Gross Domestic Product (GDP), according to the CEO of Jumia Nigeria, Nicolas Martin.
Martin, discussing on the topic ‘E-commerce as next driver of Nigeria’s Economic Growth’ in a TV program, talked about the online shopping 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, Business day reported.
He said that e-commerce had grown tremendously, with companies such as Jumia Nigeria seeing growth rates of 10 times every year. Emphasizing the importance of online shopping, he said that it would help the e-commerce industry to grow as well as assist in educating Nigerians about the convenience of online shopping.
According to Martin, e-commerce is more relevant in Nigeria than in other parts of the world because of the enormous benefits the country possesses as Africa’s largest economy.
Martin further discussed the worth of the retail market in Nigeria and how e-commerce is contributing 5-10 percent of GDP in big countries like India and China.
Online shopping is becoming quite popular in Nigeria with recent reports 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.
According to a recent 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 moving on to convenience stores, supermarkets, and online shops.
Jumia Nigeria belongs to the Africa Internet Holding (AIH) which aims at supporting the evolution of the African online culture. It is one of the leading online stores in Nigeria. (GK)
