Nigeria’s e-Commerce Market Potential Worth $10bn – Minister

Nigeria’s e-Commerce Market Potential Worth $10bn – Minister

Nigeria is surely moving to a cashless economy.

According to minister of communications technology, Dr Omobola Johnson, Nigeria’s electronic commerce market has a potential worth of $10 billion, with about 300,000 online orders currently being made on daily basis.

Speaking at the Centre for Values Leadership (CVL) which held in Lagos last week, where key stakeholders were honoured for their contributions to the growth and development of Nigeria’s information and communications technology (ICT) industry, she said the e-commerce market in Nigeria has attracted $200 million foreign investment to date with about 36 per cent of the country’s 170 million people connected online.

E-Commerce with a Vital Role In Job Creation

The Nigerian e-commerce market has created over 12,000 jobs since 2012, expanding the infrastructure, warehousing, advertising and logistics services industry.

Increased internet use could propel Nigeria private consumption almost 13 times high from $12 billion to $154 billion by 2025 according to the minister.

Quoting McKinsey’s “Lions Go Digital,” report which predicts that the Internet could contribute up to $300 billion to Africa’s GDP by 2025 up from an estimated 18 billion in 2013.

Johnson said the ICT industry has significant enabling effect on other sectors of the economy, contributing a combined 2.56 per cent of added value.

This is apart from direct contribution of 10.44 per cent to 2013 GDP.

Johnson noted that Nigeria’s positioning in the growth story of the global ICT industry was improving and strategic.

With successes achieved in several sub sectors worth celebrating but key initiatives were still a work in progress.

“We are delivering an ICT environment that is ‘enabling’ for consumers and engages more Nigerians at a high level will only be possible through creative partnerships and collaborations.”

Charles Anudu, managing director, Swift Networks in his presentation said Internet broadband would become a fundamental human right in the future as countries build ubiquitous networks with date traffic becoming more democratic.

“In terms of global traffic trends, we are seeing it here in Nigeria too. Telecom operators are trying their best but the growth in demand outstrips supply,” he said.

The Internet as Catalyst for Growth

“We are seeing more video traffic on our networks. There is emerging demand for converged services. Customers are becoming more demanding for quality of service (QoS), availability and convenience,”

He adds that mobile network connection speeds more than doubled in 2013. In 2013, 4G connections generated 29 per cent more traffic than non-4G connections.

Mr Babatunde Fafunwa, co-founder, Resourcery Plc and managing director of Kitskoo Limited on his part, said

  • Nigeria has 70 per cent more mobile phones than toothbrushes,
  • 33 per cent more mobile phones than toilets and
  • more smart devices than personal computers.
    • He said 25 per cent of Nigerians have smartphones and that it would increase to 50 per cent by 2015 and would grow to 65 per cent compound annual growth rate (CAGR) by 2016.

Fanfunwa, said 71 million Nigerians access Internet via mobile phones.

According to statistics released by the Nigerian Communications Commission(NCC), noted that Nigeria was number eight among the top 10 Internet using countries in the world.

Categories: Business News

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