Nigeria’s leading e-commerce brands like Konga, Wakanow and Jumia are to drive the country’s B2C e-commerce market to $13.1 billion in 2023, according to a new study.
The medium to long-term growth story of B2C e-commerce industry in Nigeria promises to be attractive, according to the Nigeria B2C Ecommerce Market Opportunities Databook, which forecasts that the country’s B2C market growth cross industry verticals like e-commerce verticals across shopping, travel, food service, media & entertainment, technology, among others.
The B2C e-commerce market in Nigeria is expected to grow by 12.96% on an annual basis to reach $13.1 billion in 2023, according to the report that underscores the attractive local opportunities.
Nigeria’s e-commerce market growth drivers
In Nigeria, the report authors says, “B2C e-commerce is expected to grow steadily over the forecast period, recording a CAGR of 9.29% during 2023-2027. The country’s B2C e-commerce Gross Merchandise Value will increase from $11.6 billion in 2022 to reach $18.7 billion by 2027.”
The report, which analyses the current state and future growth potential of the Nigerian e-commerce market, notes that medium-to-long-term growth up to 2027 looks promising.
The report authors attribute Nigeria’s e-commerce market growth to factors such as a large youth population, increasing internet penetration, and a growing middle class with higher purchasing power. Additionally, the COVID-19 pandemic has accelerated the adoption of e-commerce in Nigeria, with more people turning to online shopping to avoid physical stores.
The report spots local market challenges faced by e-commerce companies in Nigeria to include poor logistics infrastructure, limited payment options, and a high rate of fraudulent transactions. However, the report notes that these challenges present an opportunity for companies to innovate and improve their services to better cater to Nigerian consumers.
In Nigeria, the retail shopping e-commerce market will be driven by key players like Jiji, Jumia, Konga, PayPorte and Slot, among others.
Key players expected to drive the Nigerian travel e-commerce market growth include Bolt, GiDiCab, Rida, Travelstart and Wakanow, according to the report.
On the other hand, Nigeria’s food service e-commerce market players to watch, the authors says, include Chopnownow, Domino’s Pizza, GoFood, Jumia Food and SoFresh.