Nigeria has a population of 196 million, making it the most populous country in Africa. In 2018, Nigeria’s gross domestic product (GDP) exceeded $400 billion, making it the largest economy in Africa. Nigeria is also the largest gathering place for e-commerce in Africa, with the largest number of e-commerce websites in Africa. About 40% of African e-commerce companies are headquartered in Nigeria. Therefore, Nigeria must be the most important stop for e-commerce in Africa.
(I) A large online consumer group
In addition to its large population, Nigeria also has a very young population structure, with more than half of the population under the age of 30, and these young people are the main force of online shopping.
(II) The growing number of mobile users
The growth of e-commerce in Nigeria is inseparable from the growing number of mobile users. The Ministry of Telecommunications and Information Services is a sub-sector of Nigeria’s Information and Communication Technology (ICT). In 2018, the output value of the Ministry of Telecommunications and Information Services accounted for 77% of the entire sector. In 2018, more than 112 million Nigerians had access to the Internet, accounting for 56% of the total population. This figure increased by 14.32% compared with 2017. It is estimated that Nigeria will have 22 million new mobile users from 2019 to 2025.
(III) Cashless model is unfolding
In recent years, Nigeria has been preparing for a cashless model. In 2012, Lagos, the old capital and largest port city of Nigeria, began to pilot electronic transactions. Today, in several major cities and commercial centers (such as Port Harcourt and Enugu), led by Lagos, the demand for ATM services is increasing. The popularity of third-party payment service providers, led by MasterCard, the African version of “Alipay”, has also laid the foundation for the development of local e-commerce.
Nigeria is the largest oil producer and exporter in Africa. However, the manufacturing industry is relatively weak, and industrial finished products and consumer goods are almost entirely dependent on imports. China is a major light industrial producer and one of Nigeria’s largest importers. In Nigeria, blenders, textiles, leather products, etc. have always been very popular products. In addition, fashion and branded clothing are also very popular in Nigeria.