Nigeria E-commerce Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.53 Billion |
| Market Size (2029) | USD 14.92 Billion |
| CAGR (2024 - 2029) | 11.82 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Nigeria E-commerce Market Analysis
The Nigeria E-commerce Market size is estimated at USD 8.53 billion in 2024, and is expected to reach USD 14.92 billion by 2029, growing at a CAGR of 11.82% during the forecast period (2024-2029).
The Nigerian e-commerce market has experienced significant growth in recent years, driven by increasing internet penetration, growing smartphone usage, and a rising middle class with disposable income.
Nigeria has one of the largest economies in Africa, and its e-commerce market has immense potential. According to the CIA, Nigeria's population grew by about 6.39% compared to the previous year, providing a substantial consumer base for e-commerce businesses to target.
Mobile devices play a crucial role in Nigeria's e-commerce landscape. With the widespread adoption of smartphones, many Nigerians access the internet and engage in online shopping primarily through mobile devices. E-commerce platforms and businesses have recognized this trend and optimized their websites and applications for mobile users.
Adopting online payment modes has been a significant driver of the Nigerian e-commerce market. As more Nigerians embrace digital payments, it has facilitated the growth of e-commerce by providing secure, convenient, and efficient online transactions.
The increase in cybercrime poses a significant restraint to the Nigerian e-commerce market. Cybercriminal activities can undermine consumer trust, disrupt online transactions, and create concerns about personal and financial information security.
The COVID-19 pandemic significantly impacted the Nigerian e-commerce market, accelerated growth, and transformed consumer behavior. The lockdowns and movement restrictions imposed during the pandemic led to a surge in online shopping as consumers sought convenient and contactless ways to fulfill their needs. Nigerians turned to e-commerce platforms to purchase essential items, groceries, and other goods, driving increased demand and transactions in the e-commerce market. Post-pandemic, the market is also proliferating with increased internet penetration.
Nigeria E-commerce Market Trends
Growing Penetration of Internet is Expected to Drive the Market
- The growing internet penetration in Nigeria has been a significant driver of the country's e-commerce market. With increasing internet access and smartphone usage, more Nigerians can now connect to online platforms and engage in various e-commerce activities. According to GSMA, only 29% of Nigerians regularly use mobile internet, leaving 71% of the potential market untapped.
- The internet has provided Nigerians convenient access to various products and services. As a result, online shopping has gained popularity, and more people are now purchasing goods and services through e-commerce platforms. This has led to the growth of local and international e-commerce businesses in Nigeria.
- The demand for online shopping has prompted the establishment and growth of e-commerce platforms in Nigeria. Companies like Jumia, Zikel Cosmetics, and SLOT Systems Limited have emerged as major players in the Nigerian e-commerce market, offering diverse product categories and facilitating secure transactions.
- The rise of internet penetration has also spurred the adoption of digital payment solutions in Nigeria. Mobile payment systems, such as mobile wallets and payment apps, have made it easier for Nigerians to make online transactions. This has further fueled the growth of e-commerce, as people now have convenient and secure ways to pay for their purchases online.
- E-commerce allows businesses to reach a larger customer base beyond physical store locations. Nigerian e-commerce businesses can market their products or services nationwide and globally with the internet. This has provided small and medium-sized enterprises (SMEs) opportunities to expand their reach and compete in the digital marketplace.
The Consumer Electronics Segment is Expected to Hold Significant Market Share
- Consumer electronics play a significant role in the Nigerian e-commerce market. The demand for consumer electronics products has grown steadily as Nigerians embrace technology and seek to meet their digital needs.
- E-commerce platforms have become famous avenues for Nigerians to purchase consumer electronics products. These platforms offer many options, including smartphones, laptops, televisions, home appliances, and audio systems. Customers can compare prices, read reviews, and make informed purchasing decisions conveniently from their homes.
- Mobile subscriptions provide Nigerians with access to the internet, allowing them to browse e-commerce platforms and engage in online shopping activities. With mobile devices and internet connectivity, consumers can conveniently explore and purchase consumer electronics products from their smartphones or tablets, regardless of their physical location. According to the most recent data released by the Nigerian Communications Commission (NCC), active mobile subscriptions in Nigeria dipped by 2.81% in January 2024. The numbers fell from 224.71 million in December 2023 to 218.40 million.
- E-commerce has enabled Nigerians to access the latest consumer electronics products, including those that may not be readily available in local brick-and-mortar stores. Online retailers often stock various brands and models, allowing consumers to choose products that meet their needs and preferences.
- E-commerce provides a convenient shopping experience for consumers looking to buy consumer electronics. Nigerians can browse products, compare features, read customer reviews, and make purchases with a few clicks. Online platforms also offer various payment options, including cash on delivery, mobile wallets, and bank transfers, making the buying process seamless.
- WorldPay, a payment processing company, projects that by 2026, 13% of Nigeria's total sales will be transacted online, facilitated by electronic systems. Additionally, mobile shopping is set to dominate the online retail landscape, representing 77% of all online shopping activities in Nigeria.
Nigeria E-commerce Industry Overview
The Nigerian e-commerce market is fragmented, with significant players like Zikel Cosmetics, Jumia International, Slot Systems Limited, Ajebomarket, and Chrisvicmall. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- June 2024 - Jumia, Nigeria's premier e-commerce platform, unveiled a state-of-the-art warehouse and logistics network in Isolo, Lagos. Spanning 30,000 square meters, the facility boasts 17,000 square meters of covered storage space.
- May 2024 - Jumia, Africa's premier e-commerce platform, unveiled two new Buy Now, Pay Later (BNPL) collaborations in Nigeria. The first is with Newedge (Easybuy), a pioneering finance entity, and the second is with CredPal, a prominent fintech player in Nigeria. These alliances are set to broaden the reach of Jumia's marketplace to Nigerian consumers. By offering the option to split payments over a defined period, Jumia eliminates the need for immediate payment, making purchases more accessible. Moreover, these partnerships are poised to catalyze the adoption of cashless transactions within the Jumia ecosystem.
Nigeria E-commerce Market Leaders
Zikel Cosmetics
Chrisvicmall
Soso Games
Bonoamour
Ajebomarket
*Disclaimer: Major Players sorted in no particular order
Nigeria E-commerce Market News
- June 2024: GBLagos Art and Lifestyle, a Nigerian startup, unveiled ekoartmarket.com, an e-commerce platform to globalize African art. The company views this move as a pivotal step in its quest to democratize African art and uplift local artisans.
- February 2024: Zandaux, a B2B platform, expanded its reach by launching an e-commerce marketplace in Nigeria and Kenya. Embracing a "one Africa, one market" ethos, Zandaux empowers businesses and merchants from diverse sectors to reach customers across the continent.
Nigeria E-commerce Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key Market Trends and Share of E-commerce of Total Retail Sector
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Adoption of Online Mode of Payments
5.1.2 Growing Penetration of Internet
5.2 Market Challenges
5.2.1 Increase in Cybercrime
5.3 Analysis of Key Demographic Trends and Patterns Related to E-commerce Industry In Nigeria (Coverage To Include Population, Internet Penetration, Ecommerce Penetration, Age & Income Etc.)
5.4 Analysis of the Key Modes of Transaction in the E-commerce Industry in Nigeria (Coverage To Include Prevalent Modes of Payment Such As Cash, Card, Bank Transfer, Wallets, Etc.)
5.5 Analysis of Cross-border E-commerce Industry in Nigeria (Current Market Value Of Cross-border & Key Trends)
5.6 Current Positioning of Country Nigeria in the E-commerce Industry in Africa
6. MARKET SEGMENTATION
6.1 By B2C ecommerce
6.1.1 Market Size (GMV) for the Forecast Period
6.1.2 By Application
6.1.2.1 Beauty and Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion and Apparel
6.1.2.4 Food and Beverage
6.1.2.5 Furniture and Home
6.1.2.6 Other Applications (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market Size for the Forecast Period
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Zikel Cosmetics
7.1.2 Jumia International
7.1.3 SLOT Systems Limited
7.1.4 Ajebomarket
7.1.5 Chrisvicmall
7.1.6 Obeezi Mall
7.1.7 Soso Games
7.1.8 BonAmour
7.1.9 PayPorte
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Nigeria E-commerce Industry Segmentation
E-commerce, commonly known as electronic commerce, involves any online transaction, including purchasing and selling products and services. Among other advantages, e-commerce provides convenience, borderless transactions, and scalability.
The Nigerian e-commerce market is segmented into B2C e-commerce (beauty and personal care, consumer electronics, fashion and apparel, food and beverages, and furniture and home) and B2B e-commerce. The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By B2C ecommerce | ||||||||
| Market Size (GMV) for the Forecast Period | ||||||||
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| By B2B ecommerce | |
| Market Size for the Forecast Period |
Nigeria E-commerce Market Research FAQs
How big is the Nigeria E-commerce Market?
The Nigeria E-commerce Market size is expected to reach USD 8.53 billion in 2024 and grow at a CAGR of 11.82% to reach USD 14.92 billion by 2029.
What is the current Nigeria E-commerce Market size?
In 2024, the Nigeria E-commerce Market size is expected to reach USD 8.53 billion.
Who are the key players in Nigeria E-commerce Market?
Zikel Cosmetics, Chrisvicmall, Soso Games, Bonoamour and Ajebomarket are the major companies operating in the Nigeria E-commerce Market.
What years does this Nigeria E-commerce Market cover, and what was the market size in 2023?
In 2023, the Nigeria E-commerce Market size was estimated at USD 7.52 billion. The report covers the Nigeria E-commerce Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria E-commerce Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ecommerce in Nigeria Industry Report
Statistics for the 2024 Ecommerce in Nigeria market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ecommerce in Nigeria analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
