Akintunde Opawole, an expert in the e-commerce industry and co-founder of My Shop Launcher (MSL), a digital platform for small businesses, has highlighted the necessity for an expansion of e-commerce platforms in Nigeria. Speaking with Nairametrics, Opawale emphasized that Nigeria requires a broader array of e-commerce platforms to support the government’s digital economy agenda and foster increased competition within the e-commerce sector.
Opawale pointed out that the recent Black Friday sales underscored a significant demand among Nigerians for online purchasing, revealing a gap between consumer demand and the capacity of existing e-commerce platforms to meet it. He emphasized that while foreign players dominate the current e-commerce landscape in Nigeria, there is ample room for additional local players to enter the market.
In summary, Opawole’s insights suggest that the Nigerian e-commerce sector would benefit from increased participation from local players to better serve the needs of consumers and drive economic growth in line with governmental objectives.
What he said
- “During the last Black Friday, one of the major players in the market was doing millions of sales per minute. And that was one player, imagine what other players were doing. At that period, if you visit some of the e-commerce platforms, you would notice incidences of servers being down and some products you want to buy are already sold out. That was because a lot of people were buying from the few players available.
- “So, the market is very big, and in a way, the majority of the current players are not solving local problems because they are international players. We need more local players who understand the local needs in the space.”
Empowerment Initiatives for SMEs
Akintunde Opawole also stressed the importance of government initiatives aimed at empowering Small and Medium Enterprises (SMEs) in Nigeria with digital skills necessary for transitioning their products and services into the online sphere.
Opawale highlighted the prevailing challenge wherein many SMEs in the country lack fundamental digital skills required for effectively showcasing their offerings online. He proposed the implementation of programs specifically tailored to equip SMEs with essential digital competencies, thereby facilitating their online presence and market accessibility. In line with this objective, Opawale noted that MSL recently introduced a no-code e-commerce storefront at no cost, exemplifying a genuine dedication to the advancement and prosperity of SMEs.
Established two years ago, MSL’s inception stemmed from the recognition of the operational difficulties encountered by African merchants in managing their businesses manually.
Key Considerations
According to a report by Mordor Intelligence, Nigeria’s E-commerce Market is projected to reach $14.92 billion by 2029, experiencing a Compound Annual Growth Rate (CAGR) of 11.82% during the forecast period (2024-2029).
The Nigerian e-commerce sector has witnessed substantial growth in recent years, driven by factors such as increased internet penetration, expanded smartphone usage, and the emergence of a burgeoning middle class with enhanced purchasing power.
The prevalence of mobile devices significantly influences Nigeria’s e-commerce landscape. With the widespread adoption of smartphones, a considerable portion of Nigerians access the internet and engage in online shopping primarily through mobile platforms.
Recognizing this trend, e-commerce platforms and businesses have optimized their websites and applications to cater to mobile users, thereby facilitating seamless online experiences for consumers.
