Nigerians spend $13bn p/a on e-commerce – FG, projects sector to generate $75bn in revenue by 2025
Federal Government has estimated the current e-commerce spending in the country to be worth $13 billion per annum.
Permanent Secretary in the Federal Ministry of Industry, Trade and Investment, Dr. Evelyn Ngige, who disclosed this in Abuja at the Second National E-commerce Roundtable Session in Nigeria, said that e-commerce is projected to rise to about $75 billion in revenue per annum by 2025.
The Permanent Secretary, who was represented by the Director, Commodities and Export Department in the Ministry, Mr. Suleiman Audu, said e-commerce has grown from 14% in 2019 to 17% in 2020, adding that COVID-19 pandemic has turned global attention to the importance of e-commerce in the conduct of businesses.
She said the 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).
The permanent Secretary noted that e-commerce provides an alternative to sustain businesses and preserve millions of jobs in the face of COVID-19 pandemic.
According to Dr Ngige, “This encouraging trend has attracted the entrance of payment providers into e-commerce market.
“In addition, the demand for electronic transactions has attracted payment facilitators from Europe and Asia, who are now investing in Nigerian electronic infrastructure projects.”
She stated that the event would provide opportunity for critical stakeholders to develop strategic framework that would improve the performance of the e-commerce sub-sector in the country.
Dr Ngige explained that the Federal Ministry of Industry Trade and Investment has prioritised e-commerce as a major programme that would play a critical role in the promotion of commodity trade especially, with the current realities of the unprecedented global pandemic.
She also expressed optimism that stakeholders’ engagement would provide a new frontier for e–commerce businesses to thrive in Nigeria.
Director, Commodities and Export Department (CED) in the Federal Ministry of Industry, Trade and Investment, Mr Suleiman Audu, underscored the need to support government’s efforts to develop the economy, reduce over-dependence on the oil sector by focusing on the development of non-oil commodity sector to enhance productivity, create jobs and ensure sustainability in revenue generation.
Audu represented by Deputy Director, CED, Mr Kaura Irimiya said one of the thriving and promising markets globally is the e-commerce market, with estimated global sales of over $29 trillion.
He lamented that in spite of the growing opportunities in the e-commerce, Nigeria has not been able to explore its enormous potential.
“This could be largely due to inadequate investments in the e–commerce value chain, coupled with inadequate information on the opportunities in the sector and the inability of government to provide the required enabling environment,” he explained.
Audu added that deliberations and recommendations of the stakeholders’ engagement would guide policymakers, regulators and other players in the e–commerce ecosystem in line with international best practices.
