Nigeria’s E-Commerce Market Set to Surpass $16 Billion by 2030, Fueled by Jumia, Konga, and Digital Innovation
Nigeria’s e-commerce market is on a steep growth trajectory, projected to exceed $16 billion by 2030, according to the Lagos Business School (LBS). This growth is being driven by pioneering platforms like Jumia and Konga, alongside innovative logistics startups such as Kwik and GIGL that are reshaping the nation’s commerce and service delivery. The announcement was made during the 35th annual Finance Correspondents Association of Nigeria (FICAN) conference in Lagos, themed “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance.”
Professor Olayinka David-West, Dean of LBS, highlighted that Nigeria’s digital economy is being powered by a young, tech-savvy population and increasing internet penetration. Recent data from the Nigerian Communications Commission shows that internet access reached 43.5% in 2024, with over 163 million Nigerians online. The telecommunications sector contributes roughly 18–20% of the country’s GDP, underscoring the critical role of digital technology in driving economic growth.
Digital transformation is not limited to e-commerce. Nigeria’s fintech sector alone attracted over $2 billion in investments in 2024, reinforcing its position as Africa’s financial technology hub. Leading banks, including Access Bank and GTBank, are adopting AI and machine learning to improve fraud detection, personalize services, and enhance credit scoring. Mobile money and digital payment solutions are also expanding access to formal financial systems, helping integrate previously informal businesses and improve tax compliance.
However, challenges remain. Infrastructure gaps, such as unreliable electricity and limited broadband in rural areas, alongside a shortage of digital skills, could restrict participation in the digital economy. Professor David-West emphasized the need for regulators to balance innovation with consumer protection. Initiatives like the Central Bank of Nigeria’s sandbox framework are offering controlled environments for fintech experimentation, supporting safe growth in the digital financial landscape.
FICAN Chairman Chima Titus added that a robust digital economy depends on effective taxation frameworks. With digital payment transactions surpassing N600 trillion in the first half of 2024 and mobile money usage reaching over 73 million Nigerians, the sector is demonstrating significant economic potential. Strategic initiatives like the CBN’s Payment System Vision 2028, incorporating AI, blockchain, and cross-border payments via the African Continental Free Trade Area, are set to further accelerate Nigeria’s digital revolution.
source: punch