The company announced the capital raise alongside its second-quarter 2026 financial results on Wednesday.

The fundraising, priced on August 11, includes participation from Axian, one of Jumia’s largest shareholders, alongside other investors.

Under the agreement, investors will acquire 9.1 million American Depositary Shares (ADSs) at $5.52 per share, generating expected gross proceeds of $50 million. The transaction is expected to close in the second half of August, subject to customary conditions.

Jumia said the funds will support the next phase of its growth strategy, improve operational efficiency across its core African markets and strengthen its integrated marketplace and logistics network.

Chief Executive Officer Francis Dufay said the investment reinforces the company’s path toward profitability.

“The agreed investment anchored by the International Finance Corporation, a member of the World Bank Group, and joined by current leading shareholders and selected new investors, will strengthen our balance sheet as we execute against that plan,” Dufay said.

“We continue to see ourselves firmly on track toward our target of achieving Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, and full-year profitability on an Adjusted EBITDA basis and positive cash flow in 2027,” he added.

Jumia reported second-quarter revenue of $52 million, representing a 14% year-on-year increase, or 15% on a constant currency basis.

The growth was driven by stronger transaction volumes, although revenue expansion was partly moderated by a higher share of third-party marketplace sales, which generate commission income instead of recognising the full value of merchandise sold.

Commenting on the results, Dufay said the company’s operating model continued to demonstrate resilience despite challenging market conditions.

“Despite real headwinds—including supply disruptions in phones and electronics, rising fuel costs, and a demand slowdown in Ivory Coast tied to cocoa prices—GMV and physical goods orders, each adjusted for perimeter effects, grew 23% and 28%, respectively, year-over-year, while our Adjusted EBITDA loss narrowed by 36% to $8.7 million,” he said.

He added that gross profit increased by 28% year-on-year, reflecting continued improvements in marketplace monetisation, while the company maintained discipline by prioritising margins and profitability over aggressive growth in gross merchandise value.

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TECHDIGEST – Uncertainty in the global technology sector has continued into 2023 with 123,882 tech workers sacked this year.

layoffs.fyi, a global tech layoff tracker, disclosed that as of March 4, 2023, 453 tech firms had laid off 123,882 employees.

According to the organisation, this represents 76.75 per cent of the 161,411 tech employees that were laid off in 2022.

In 2022, 1048 tech firms laid off 161,411 employees following an economic downturn, falling revenues, and rising inflation.

Last year, major tech firms such as Meta, Twitter, and Amazon led the layoff pack.

In Africa, Jumia has sacked 900 employees to lead tech firms that have laid off employees this year.

According to the firm, sacking 900 of its current employees would allow the firm to save 30 per cent.

It explained, “We expect these headcount reductions to allow us to save over 30 per cent in monthly staff costs starting from March 2023, as compared to the October 2022 staff cost baseline.

“The implementation of these organisational changes resulted in $3.7m in one-off restructuring costs booked in the fourth quarter of 2022.”

Since its pandemic boom, the global tech sector has had to grapple with an economic downturn and reduced revenue.

Also, rising global inflation and interest rates have impacted funding in the sector.

The Tech industry’s growth potential was affected by an economic recession, as documented in a recent counterpoint report.

READ ALSO : Meta Launches “Take It Down” Program to Combat Teen “Revenge Porn

The new year has ushered in a wave of layoffs. Already firms like Microsoft have announced plans to sack 10,000 workers (about five per cent of its workforce).

In January, Amazon announced plans to lay off 18,000 workers; Zoom plans to cut 15 per cent of its workforce; PayPal plans to cut 2,000 full-time employees; and Alphabet Inc. announced 12,000 job cuts.

Since the peak of the COVID-19 pandemic, the global tech industry has lost $7.4tn of its value, which has led to reduced cost measures and growth projections. Global funding into the tech scene fell in 2022, and many tech firms are lowering their expectations for the year.

According to the Founder of Lendsqr and a trustee of Open Banking Nigeria, Adedeji Olowe, a lot of this is already happening in the US.

“Start-ups are struggling and laying off staff, and when this is happening, it mirrors what might happen here too. Because when start-ups here raise funds, they also raise overheads, and this is not sustainable without venture capital funds. Start-ups here are likely going to start laying off staff in a bid to cut costs.”

In an earlier interview with The PUNCH, he explained how work went remote as a result of the pandemic, and how digital services exploded.

He added, “A lot of companies, both big and small, faced a lot of demand. There was an increased demand for their services and a lot of people thought that the increased demand and growth will face an upward trajectory, so people over-hired.

“People also raised funds at a high valuation. Now that the world is normal, things are calmer, and reality is beginning to reset things. It was COVID-19 exuberance that caused people to over-hire. So, now people are shedding excess weight. Tech is still great, that is the truth, but both enthusiasm and economics are coming back to normal. The market will reset, and everyone will move on.”

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TECHDIGEST – The Nigerian government expects to produce two to three new unicorns before the end of 2023. Isa Ali Pantami, Minister of Communications and Digital Economy said this while speaking on a panel with ministers from other countries at the LEAP technology conference organised by the Digital Corporation Organisation (DCO).

According to the minister, Nigeria has so far led the unicorn counts in Africa with five of the seven known unicorns originating in Nigeria. These include Interswitch, Jumia, Flutterwave, Opay, and Andela.

There were about 16 startups that attended the LEAP Conference in 2023 and benefitted from the Startup Passport commenced by the DCO member countries. Nigeria is currently a significant beneficiary of the initiatives instituted by the DCO, according to the minister.

Pantami said his ministry has continued to support tech startups in the country, especially with the Nigeran Startup Act which was signed into law in 2022.

READ ALSO: Pantami Calls For Global Cooperation In Digital Economy At LEAP Tech Conference

Nevertheless, Nigeria as well as the African tech ecosystem did not record any tech unicorns in 2022 due to the economic headwinds that impacted the global tech industry and led to the highest layoff of over 150,000 tech workers. The layoff activities have continued in 2023 with January recording the highest number of workers laid off by tech companies. Experts say the layoffs will continue and the venture capital, as well as private equity firms, are warier of making deals.

The low funding activity has also put the unicorn status of some companies in question. Recently, Ola Brown, founder of Flying Doctors and tech investors suggested that some African unicorns may have lost their valuation.

“Valuations are cyclical, they go up and down with the market. Currently, fintech stocks are 8x to 10x. Not sure if you convert with street rate anyone s doing >$100m revenues? So maybe no unicorns left, for now,” Brown said.

But Africa welcomed a new unicorn in February with the announcement that MNT-Halan has managed to secure a whopping $400 million in equity and debt financing at a $1 billion valuation.

The round includes $260 million in equity financing and $140 million in debt funding through two securitized bond issuances secured within the past year. About $200 million of the investment came from Abu Dhabi–based Chimera Investments in exchange for 20 percent equity.

Pantami who has less than 6 months to leave office as Minister was not forthcoming on how the new unicorns from the Nigerian ecosystem would be minted or what new role the government plans to play to make it happen.

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TECHDIGEST – The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE has praised Jumia for deploying Information and Communications Technology (ICT) resources to reform e-commerce sector, and boost the country’s economic growth.

The NITDA DG gave this commendation while speaking on the role of ICT in shaping the Nigerian economy at the 10th anniversary luncheon of Africa’s first unicorn, Jumia at the Eko Hotel & Suites, Victoria Island, Lagos.

Commending Jumia on its growth and trajectory in the country’s e-commerce ecosystem over the years, Inuwa who was represented by the Agency’s Head of South West Zonal Office, Barr. Chioma Okee-Aguguo stated that the organization which started as a tech start-up a decade ago is now considered a trailblazer and an inspiration to other tech start-ups in the country.

While praising the company for its contributory influence in the enhancement of the country’s e-commerce industry, Inuwa noted that the rapid development of ICT in Nigeria has enabled heterogeneous economic sectors to be more integrated.

Acknowledging the tremendous impact the company has had on the economy of the nation, Inuwa said that Jumia has created more jobs for youths and transformed the commercial face of wholesale and retail businesses while at the same time delivering excellent customer satisfaction.

“You have positively impacted the lives of millions of Nigerians and changed the face of commerce in the country. We celebrate your success stories and commend your efforts at reshaping the e-commerce industry in Nigeria”, he stated.

Inuwa further said that electronic commerce has led to unprecedented improvement in the growth and productivity of the Nation’s economy and urged other financial services, healthcare, government and other industries to explore ways of using ICT to transform their traditional process models.

Stating the inclination of the present administration to foster efficient, safe and economically productive Digital Nigeria through the deployment of IT, Inuwa averred that NITDA has developed programmes to support e-Government initiatives by strengthening cybersecurity, developing digital skills for digitally excluded citizens and enhancing developmental regulations to promote ICT-centered innovation and entrepreneurship.

“Technology revolution is upon us as the largest economy and largest population in Africa. We stand to gain immensely by leapfrogging from our present status in the ICT ecosystem development, engaging
the values of innovative application development, deployment and adoption”, he concluded.

Giving his remark on the company’s 10-year milestone, the Chief Executive Officer of Jumia Nigeria, Mr. Massimiliano Spalazzi expressed his gratitude to the company’s workforce and customers for their unflinching support over the years and promised more excellent service delivery.

“We are very proud of what we have built, thanks to our customers and employees and to show our appreciation, we want to focus more and more on customer needs and ensure we are adapting to market demands”, he promised.

Also speaking on Jumia’s impact on communities, women, entrepreneurs, youths and the country’s economy, the co-founder of Jumia, Jeremy Hodara said that the company has partnered with both international and local brands to offer thousands of products to Nigerian consumers through a workforce of over 1000 employees, over 10000 independent sales agents and over 350 partners.

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TECHDIGEST – American e-commerce giant, Amazon, is set to disrupt the Nigerian e-commerce market as it plans to launch in the country in April 2023. When it launches, Amazon will compete with Konga and Jumia, the two dominant players in the Nigerian e-commerce space.

According to a report by Business Insider, the company will be expanding to five countries across Africa, Europe, and South America, while maintaining its base in the United States. The five countries are Belgium, Chile, Colombia, Nigeria, and South Africa.

Amazon, which currently runs in 20 different countries, is investing in long-term growth while it scales up its US-based outlet.

The report says this could result in more competition for local e-commerce companies, which operate across Africa, and Mercado Libre, a leading online marketplace in Latin AUS-based.

READ ALSO: Finally, NITDA Issues Code of Practice for Online Platforms Operating in Nigeria

Business Insider in the report said the timing of the rollouts in a detailed timeline would be between 2022 and 2023.
“Belgium’s marketplace, called Project Red Devil, is slated for late September 2022. The one in Colombia, dubbed Project Salsa, is scheduled for February 2023.

“South Africa, codenamed Project Fela, is also expected in February 2023. The marketplace in Nigeria is due to launch in April 2023. That project shares the codename Project Fela with South Africa,” it said.

“Chile is planned for April 2023, too. It shares the Project Salsa name with Colombia,” the report added.

The report also revealed that all countries plan to launch their marketplace and access Amazon’s fulfilment service, ‘ Fulfillment by Amazon’. It said that Amazon’s prime membership programme is expected to be available at launch in Belgium, while other countries will get it shortly after their introductions.

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TECHDIGEST -Jumia, one of the major e-commerce players in the African market, appears to be battling severe headwinds after its share price, which once traded at record highs of $59.96, tumbling down and currently trading at less than $5, prompting speculations of a loss of investor confidence and a surprise takeover by Sub-Saharan Africa’s leading tech conglomerate, the Zinox Group.

In April 2019, Jumia had listed on the New York Stock Exchange with an eye-catching IPO, which witnessed share prices opening at $14.5 and rising as high as $26.

However, two weeks after, a damning report by Citron Research had accused Jumia of fraud, describing its stock as worthless. Specifically, the report had highlighted discrepancies in financials between investor presentations and SEC filings by Jumia, accusing its management of fraudulently inflating order numbers, while also labelling it a company burdened with inefficiencies.

Although Jumia denied any wrongdoing, the allegations from Andrew Left, founder of Citroen Research, resulted in a class-action lawsuit which Jumia recently settled out of court for $5 million.

However, the debacle appeared to have seen investor confidence in Jumia take a huge bashing, with the likes of Rocket Internet and MTN Group, among others, exiting.

Several reports and articles in local and international media also detailed how the company which prided itself as the continent’s first unicorn fell from grace and how Jumia’s misadventure had tainted the potential of African e-commerce.

Now, confidential information from a few highly placed sources indicate that Chairman of the Zinox Group, Leo Stan Ekeh, is ramping up shares in Jumia indirectly for a possible acquisition.

Feelers say the serial digital entrepreneur, who is credited with pioneering e-commerce in Africa with his now-defunct BuyRight Africa over 12 years ago, is replicating the same strategy which he deployed successfully in acquiring Yes Mobile, a cosmopolitan high-value retail outfit, Ashour Corporation, a foremost telecommunications services provider headquartered in Dubai, UAE and more recently Konga.

Ekeh acquired Konga, another latter-day e-commerce pioneer, at a dying stage in 2018 and turned it around to the point of profitability in barely three years, becoming the first e-commerce brand to achieve this feat which industry experts have termed a miracle.

Confidential sources claim Ekeh is supporting Konga’s massive investment in technology, logistics with a recent investment of over N4 billion and other infrastructure, including acquiring the single largest warehouse in Lagos, Port Harcourt, Abuja and Onitsha not too long ago, with the brand also attracting concrete interest from a horde of potential investors.

The Zinox Chairman, a restless but very passionate e-Commerce enthusiast, is rumoured by sources to be keen on consolidating the e-Commerce brand with a presence in 15 African countries under Konga to actualize his great but very silent ambition to alter the destiny of Africans.

However, when contactedHowever, when contacted, Gideon Ayogu, Head of Corporate Communications, Zinox Group, stated that while nothing positive is impossible, it would be a surprising development if the Group is intent on acquiring Jumia, especially considering the huge work put in by the new owners and current management of Konga in repositioning the brand to its current impressive trajectory.

“I am yet to hear Mr. Ekeh speak of any such potential investment,” Ayogu added

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TECHDIGEST – E-commerce platforms like Jumia and fintech companies have brought a new dynamic to everyday living in Northern Nigeria.

Individuals, households, small enterprises, and huge corporations are increasingly turning to the internet for a variety of transactions.

More importantly, Jumia and other partners’ dedication to open the digital space in the northern states has resulted in increased awareness and knowledge of the enormous capabilities and benefits of e-commerce.

E-commerce platforms, in particular, have accelerated digitisation in the north by eliminating barriers to entry such as skepticism, lack of confidence, and concerns about data security breaches, among others.

Nano Strix, a 3PL logistics company, based in Abuja and several FMCG companies are among small and large corporations leveraging e-commerce to create and increase opportunities in the northern part of Nigeria and elsewhere. Through its partnership with Jumia launched in 2015, the company provides third-party logistics services and is the first logistics hub for Jumia in Northern Nigeria.

According to Nano Strix CEO Mohammed Maikudi, as the pioneer e-Commerce platform in Northern Nigeria, the company has been able to push over from the initial low user adoption occasioned by people’s lack of trust and fear of the safety of putting their debit cards online.

“Over time, Jumia has built a name for itself where we now see a more positive trajectory in the industry. People are now more trusting of the services Jumia offers, putting their credit cards or debit cards online ordering items without the fear of being stuck with something they don’t like or expect,” he said.

Maikudi further enthused, “Our package volumes have started to increase over time, allowing us to employ more staff, provide more benefits to our staff and bring them into the fold. For example, our volume has increased to a point where we allow staff to bring into our 3PL fleet, so everyone benefits.”

READ ALSO: Apply To Pitch At GITEX 2022 North Star Startup Competition

Furthermore, Jumia’s partnership with Unilever for last-mile logistics is accelerating e-commerce adoption in Northern Nigeria.

The strategic partnership enables Unilever to improve turnaround time for consumers in Northern Nigeria’s vast geographic area, allowing them to obtain items more quickly.

The consumer goods company benefits from Jumia’s extensive logistics network by optimizing network scale, delivery speed, and seamless customer experience.

Commenting on the partnership, Jeremiah Aloko, Unilever Nigeria Logistics Manager, Supply Chain Operations, said the strategic partnership with Jumia Nigeria has significantly impacted top tier services in Northern Nigeria. During the presentation of Unilever Nigeria’s Best Logistics Partner award to Jumia, he said, “We are impressed with Jumia’s high quality of work in the context of an extremely challenging logistics environment in Africa.”

As e-commerce grows in popularity in Nigerian cities, Jumia and others are fostering many small businesses and logistics companies to satisfy the increasing demands of sellers and buyers. In some Northern Nigerian cities like Kaduna, Kano, and Plateau, it is now common to see delivery vans and bikes delivering items to customers.

Fortune Arinze, a Jumia partner and CEO of Brand Shop Prints, an Abuja-based ICT firm, applauded the impact of Jumia pick-up station on business growth.

He acknowledged that the partnership has helped maintain cash inflow during printing business downtime and supported business expansion through ownership of bikes that deliver food on the Jumia platform.

“As an entrepreneur, the major aim is to make more revenue, and that’s what having a pick-up station in our office space does for me. The advantage we get from this pick-up station is constant turnover, which is what every business needs because, with our kind of business, it’s not every day that we receive new jobs or contracts from clients, but the Jumia pick-up station is a steady source of income. People pick up items every day, and we also deliver food every day. Jumia pays for each item picked up from the station,” he said.

The disruption caused by COVID-19 emphasizes the importance of e-commerce adoption in the north. Logistics gaps like transportation and warehousing, as well as the lack of physical stalls to sell during the lockdowns, would have spelt doom for small scale farmers if not for e-commerce platforms. While the lockdown was in effect, their produce, particularly groceries and other perishables, would not have made it to the public.

Source : Tech economy.ng

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TECHDIGEST – As technology has shown a critical  role in the development of the Western World and its economic growth, developing countries are still suffering to integrate advanced technologies into their system today.  With globalization and cooperation from developed countries advanced technologies can be invested into Third World countries.

Lack of investment in science and technology has undermined Africa’s economic transformation at both the structural level and the sectoral level (the growth of productivity within sectors).

In many Third World countries the unemployment rate is found to be very high.  Driving technology can decrease the unemployment rate by creating more job opportunities in those countries for example here in Nigeria we have the Bolt, Rida, Uber and many other driving technology that has help reduce the rate of unemployment .

As technology continues to advance, creating a sufficient technological environment in different types of organizations where almost every job today requires a certain degree of advanced IT skills.

Today, mobile phones and other computer software make those services accessible for everyone online.  Third World countries can benefit from those provided services through advanced technologies in different fields such as agriculture, healthcare, and education.

One of the main reasons to infuse technology in the Third World countries is that existing technologies developed by other nations can be used; the Third World countries just need to learn how to integrate and operate them.  Consequently with all integrated technological advantages.

One of the most common challenges that developing Countries face when integrating technology is the lack of infrastructure that might interfere with technology.  It is crucial prior to infusing technology into  developing Countries to develop a sustainable infrastructure plan that could support advanced technologies. While integrating technology in Third World Countries is well thought out for economic development and growth, it is also as important in improving education.

As a matter of fact, education is a priority that Third World Countries need today to take them to the next level and even lead them to the status of developed countries, also in order to infuse technology into Third World countries it is significant to take social, economic, and political factors into account.  Infusing technology into Third World countries can make a positive difference to their nations.

Technology will bridge Third World countries to the rest of the world and make them more approachable.  A sustainable technology development will offer better opportunities and raise the standard of living of the people living in Third World countries. Bridging the skills deficiency gap in science, technology, and innovation is vital to unlocking Africa’s potential and accelerating economic growth and prosperity.

The best-trained, most talented researchers gravitate to environments where their work is leveraged by modern equipment, reliable utilities, and sufficient funding for supplies and, perhaps most critically, where they can benefit from the presence of other talented people and we Africans are proven to be very talented and smart people if given the chance to explore.

READ ALSO : NITDA, LBS Developing Model For Increased Govt Incentives For Startups – Kashifu

Nigeria has a powerful entrepreneurial climate, with innovative ventures such as Jumia, Inter-switch,  and Andela as the outcomes. These ventures cut across the education, fintech, agriculture, healthcare, logistics, and travel. Nigeria was Africa’s leading startup investment destination in 2018, recording nearly $95 million in deals. Lagos’ Yaba neighborhood has even earned the nickname “Yabacon Valley.”

The relative affordability of Nigeria’s internet is key: The Economist ranks it first in affordability in the region. The government’s National Identity Management Commission is set for a massive registration for the country’s mandatory National Identity Number (NIN).

A unique identity system is essential in developing countries, where the vast majority have few other ways to prove who they are and thereby get access to public services or the financial system, usually through a mobile phone. Policies to facilitate digitization must adapt to many challenges, which, themselves, must be addressed over time.

It is therefore heart-warming when the Minister of Communications and Digital Economy, Isa Pantami refently challenged startups and innovators in the Nigeria ecosystem to take ownership of existing policies to further consolidate and enhance the success of the ecosystem.

During his meeting with indigenous innovators in Lagos, Pantami urged them to explore avenues of developing the Ecosystem to further drive the digital economy agenda.

Beyond the call, the Federal Government should also ensure its policies are practicable for the enabling environment.

Fom Gyem writes from Wuye District, Abuja

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TECHDIGEST – In the recent decade, the internet has significantly impacted the Nigerian business environment. Almost every household in major Nigerian cities has someone running a successful internet-based business. The ever-increasing volume of e-commerce activities attests to the widespread impact.

Thousands of retail businesses would not exist today if it weren’t for the internet and e-commerce. Increased internet usage has opened up new opportunities for entrepreneurship and employment across the country. “According to a recent poll, 30-40% of our vendors indicated Jumia was where they started their business. Some sellers came to Jumia to expand their business,” said industry leader and Jumia Nigeria Chairwoman Juliet Anammah.

There’s still a lot more ground to cover in comparison to the overall goal. According to an Accenture analysis on Africa iGDP Forecast, the continent’s internet economy has the potential to contribute $180 billion by 2025, with a projected increase of up to $712 billion by 2050. The fact that companies in the internet sector, in general, have outperformed other sectors of the economy shows a pattern for the same.

According to the National Bureau of Statistics’ (NBS) recently released telecoms report, the number of Internet subscribers in Nigeria increased by 14.03 million in the fourth quarter of 2021 to 154.3 million, up from 140.28 million the previous quarter. Lagos, Kano, and Ogun State lead the way with 37.61 million subscriptions as of December 2021.

Industry experts have stressed that the major hurdle to enhancing internet connectivity in the country is building subsea cables, as there has been a shortage of fibre links and transmission. The Ministry of Communication and Digital Economy has confirmed plans to roll out a 5G network across the country by 2022. This is expected to bridge the infrastructure gap further, as more cables will be laid, which will lead to increased e-commerce activity in the country.

E-commerce-based businesses have been leading drivers of growth and diversification of Nigeria’s economy in the last decade. The sector is boosting the economy by increasing productivity, promoting innovation, improving knowledge management, educating customers and providing better shopping experiences. According to the International Trade Administration, the current e-commerce spending in Nigeria is estimated at $12 billion and is projected to reach an impressive $75 billion in revenues per annum by 2025.

While the major states are gaining more internet access, it is important to penetrate the secondary and rural communities. Investment in internet penetration to these communities will bring more Nigerians into the business world and propel the country towards achieving its 2030 digital economy projections.

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TECHDIGEST – The e-commerce section of the Nigerian digital economy holds immense potential for the overall growth of the economy.

With 58 online marketplaces in the Nigerian e-commerce space, the contribution of companies such as Jumia, Konga, Jiji, Kaiglo, Njalo.ng, in recent years are exceptional and the economic outlook for the next few years of stability and consolidation.

Recently, the federal government revealed the improving impact of e-commerce on the country’s economy, saying the current e-commerce spend in Nigeria has grown to $13billion per annum and is expected to hit $75billion in revenue per annum by 2025.

According to Dr. Evelyn Ngige, permanent secretary in the Federal Ministry of Industry, Trade and Investment, e-commerce grew in Nigeria from 14% in 2019 to 17% in 2020. She stated that her ministry was passionate about the growing Investment opportunities in the e-commerce value chain, which are capable of contributing significantly to the country’s Gross Domestic Product (GDP).

Statista’s digital market outlook for Nigeria’s e-commerce also said the number of online shoppers in the country, which was at 76.7 million in 2021, is expected to hit 122.5 million by 2025.

A report by Agusto & Co predicted new entrants into the small and medium scale enterprises (SMEs) segment of the Nigerian economy thanks to the emerging e-commerce sales trend.

“Through e-commerce, players enjoy a wider customer reach with the ability to simultaneously connect to millions of consumers locally and globally. We note that the emergence of COVID-19 positively impacted the sector, with players recording a gush of customer orders particularly during the lockdown period. We expect this trend to continue into the emerging post COVID-19 era premised on the rising rate of adoption of online shopping by consumers on the back of the relative convenience it offers,” the report stated.

Commenting on this development, Jumia CEO, Spalazzi said: “It shows that Nigerians are embracing e-commerce more, and the services are becoming part of their daily lives. Importantly, this also shows that consumers are getting value from e-commerce services. This has been our aim at Jumia from the onset, and we are happy that the country is gradually seeing the impact of e-commerce to the economy.”

He added that e-commerce holds a lot of economic potential for Nigeria if given the needed support. “This is just like a tip of the economic benefits the country stands to get from e-commerce. A huge chunk of the market is yet to be exploited. The industry holds a lot of economic potential for Nigeria in terms of employment, technology development and overall GDP of the country,” Spalazzi said.

Figures by the Nigeria Inter-Bank Settlement System (NIBSS), also showed that Nigeria’s e-payment transactions increased by 85.5% year-on-year to N171.99tn in August 2021.

Little wonder the Nigerian government is paying more attention to this sector and formulating policies to facilitate a vibrant digital economy.

Abdullahi Kashifu, the Director-General of the National Information Technology Development Agency (NITDA) in his congratulatory message to Jumia on its 9th anniversary said that the federal government is visibly at work to improve digital economy activities in the country, especially seeing as it provided immense support to the government during the covid lockdowns.

He stated that Jumia has had an impressive nine years of e-commerce journey which has seen it expand to several African countries, creating employment opportunities and becoming a good reference for innovative startups on the continent.

He said “These are the kind of startups we encourage, an innovation-driven enterprise. You look at the global market and huge capital investment and job creation. And also you are innovative and creating a lot of jobs in the ecosystem.”

According to the Ministry of Communication and Digital Economy, “Internet penetration in Nigeria in the last one year is unprecedented. Based on available records, the internet came to Nigeria most probably around the year 2000. Up to 2919, the penetration was 33%. Averagely, that’s about 1.7% penetration annually. But from August 2019 to November 2020, the penetration catapulted to 47%. That is about a 12% increase within one year. It is expected that, by the end of 2021, we could have more that 50% internet penetration in Nigeria and this is encouraging indeed. E-commerce, leverages on internet penetration, without it’s very difficult. So the more broadband penetration, by implication, the more e-commerce activities in the country.”

Going by these indices and other pillars falling into place, e-commerce is set to be a major contributor to the direction of Nigeria’s digital economy as the nation surges towards the projected 2025 growth mark.

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