The National Information Technology Development Agency (NITDA) announced that deeper broadband penetration in Nigeria and upgraded e-payments solutions were responsible for the growth of e-commerce in Nigeria and the sector is expected to grow 14% annually.
This was disclosed by Mr Kasim Sodangi, the National Coordinator, Office for Nigeria Content Development in ICT (ONC), a NITDA subsidiary, at the 2020 e-Commerce and Marketing Online Seminar for Micro, Small and Medium Enterprises (MSMEs) in Abuja on Wednesday.
Mr. Sodangi disclosed that Nigeria’s e-commerce sector is expected to grow 14% annually, citing a report by McKinsey that Nigeria’s major e-commerce sectors are mostly retail components
“The e-Commerce in Nigeria is determined by the population which is about 200million, with 132million of them using the internet. This number is likely to increase with internet penetration, which is expected to be at 65.2 per cent by 2025.
300,000 online purchases daily compared to the previous 30,000 witnessed in previous years,” he said.
He added that the main demographic for online shopping in Nigeria are young people between the ages of 25-35, while 68% of shopping was done through a mobile phone.
“Going by trends, social media may become the most dominating form of e-commerce and very important in our journey to deepen e-commerce in Nigeria,” he said.
The National Bureau of Statistics reported that Nigeria’s Gross Domestic Product (GDP) contracted by -6.1% in the second quarter of 2020.
