Market Size of Nigeria E-commerce Industry
| 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 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.
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| Market Size (GMV) for the Forecast Period | ||||||||
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| By B2B ecommerce | |
| Market Size for the Forecast Period |
Nigeria E-commerce Market Size Summary
The Nigerian e-commerce market is experiencing robust growth, driven by factors such as increased internet penetration, widespread smartphone usage, and a burgeoning middle class with disposable income. As one of Africa's largest economies, Nigeria offers immense potential for e-commerce businesses, with a substantial consumer base ready to engage in online shopping. The market's expansion is further fueled by the adoption of digital payment solutions, which provide secure and convenient transaction methods. Mobile devices play a pivotal role in this landscape, with many Nigerians accessing e-commerce platforms primarily through smartphones. This trend has prompted businesses to optimize their websites and applications for mobile users, enhancing the overall shopping experience.
The COVID-19 pandemic acted as a catalyst for the growth of e-commerce in Nigeria, as lockdowns and movement restrictions led to a surge in online shopping. Post-pandemic, the market continues to thrive, with increased internet access and the popularity of online shopping driving demand. E-commerce platforms like Jumia, Zikel Cosmetics, and SLOT Systems Limited have emerged as key players, offering a wide range of products and facilitating secure transactions. The market remains fragmented, with companies adopting strategies such as partnerships and acquisitions to enhance their offerings. Consumer electronics are a significant segment within the market, with online platforms providing Nigerians access to a variety of products that may not be available in local stores.
Nigeria E-commerce Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness-Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Key Market Trends and Share of E-commerce of Total Retail Sector
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2. MARKET SEGMENTATION
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2.1 By B2C ecommerce
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2.1.1 Market Size (GMV) for the Forecast Period
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2.1.2 By Application
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2.1.2.1 Beauty and Personal Care
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2.1.2.2 Consumer Electronics
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2.1.2.3 Fashion and Apparel
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2.1.2.4 Food and Beverage
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2.1.2.5 Furniture and Home
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2.1.2.6 Other Applications (Toys, DIY, Media, etc.)
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2.2 By B2B ecommerce
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2.2.1 Market Size for the Forecast Period
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Nigeria E-commerce Market Size 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.
