A Look at E-Commerce Adoption in Northern Nigeria – TechEconomy.ng

E-commerce platforms such as Jumia and fintech companies have brought a new dynamic to daily life in northern Nigeria.

Individuals, households, small businesses and large corporations are increasingly turning to the Internet for a variety of transactions.

| e-commerce

More importantly, the dedication of Jumia and other partners to opening up 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 digitalization in the North by breaking down barriers to entry such as skepticism, lack of trust, and worries about data security breaches, among others.

Nano Strix, a 3PL logistics company, based in Abuja and several FMCG companies are among the small and large companies that are leveraging e-commerce to create and increase opportunities in the northern part of Nigeria and beyond. 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 a pioneering e-commerce platform in Northern Nigeria, the company has been able to overcome the initial low user adoption caused by people’s lack of trust and the afraid of the security 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 confident in the services offered by Jumia, putting their credit or debit cards online to order items without fear of being stuck with something they don’t like or expect,” he said.

Maikudi further enthused, “Our parcel 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 such an extent that we allow staff to integrate our 3PL fleet, so that everyone benefits.

E-Commerce Adoption in Northern Nigeria
| People wear face masks in accordance with the state directive to curb the spread of the COVID-19 coronavirus (Photo by PIUS UTOMI EKPEI/AFP via Getty Images)

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

The strategic partnership allows Unilever to improve turnaround times for consumers in the vast geographical area of ​​Northern Nigeria, allowing them to get items faster.

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

Commenting on the partnership, Jeremiah Aloko, Unilever Nigeria Logistics Director, Supply Chain Operations, said the strategic partnership with Jumia Nigeria has had a significant impact on leading services in Northern Nigeria. While presenting Unilever Nigeria’s Best Logistics Partner award to Jumia, he said, “We are impressed with the high quality of Jumia’s 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 encouraging many small businesses and logistics companies to meet the growing demands of sellers and buyers. In some towns in northern Nigeria like Kaduna, Kano and Plateau, it is now common to see delivery vans and bicycles delivering items to customers.

Fortune Arinze, Jumia Partner and CEO of Brand Shop Prints, an Abuja-based ICT company, applauded the impact of Jumia’s pickup station on the company’s growth.

He credited the partnership with helping maintain cash inflows during print shop downtime and supporting business expansion through owning bikes that deliver food to the platform. Jumia.

“As an entrepreneur, the main objective is to generate more income, and that is what having a pick-up station in our offices does for me. The benefit we get from this pick up station is constant turnover, which every business needs because with our type of business it’s not every day that we get new jobs or contracts from clients, but the Jumia pickup station is a stable source of income. People pick up items every day and we also deliver food every day. Jumia pays for each item collected from the station,” he said.

The disruption caused by COVID-19 highlights the importance of adopting e-commerce in the North. Logistical shortcomings such as transport and warehousing, as well as the lack of physical stalls to sell during lockdowns, would have spelled disaster for smallholder farmers if it weren’t for e-commerce platforms. While the lockdown was in effect, their products, especially groceries and other perishables, were reportedly not made public.