Nigeria

Nigeria

General Information

  • Population 206.1m
  • Population 15 + 116.5m
  • Online Population 103.1m
  • Area 923,768 km2
  • Currency NGN
  • GDP 429.4bn USD
  • GDP per Capita 2,083 USD
  • Card-based payments
  • Cash-based payments
  • Bank transfer
  • Wallets
  • Other
[{"label":"Card-based payments","value":"35"},{"label":"Cash-based payments","value":"23"},{"label":"Bank transfer","value":"21"},{"label":"Wallets","value":"7"},{"label":"Other","value":"14"}]
Banked population
  • Nigeria 39%
  • Middle East & Africa 48%
  • World 67%
Credit card penetration
  • Nigeria 3%
  • Middle East & Africa 12%
  • World 19%
Internet penetration
  • Nigeria 50%
  • Middle East & Africa 45%
  • World 62%
Smartphone penetration
  • Nigeria 51%
  • Middle East & Africa 65%
  • World 70%

As the number of Nigerians with mobile phones and therefore access to the internet, grows, so does the number of people purchasing online. Nigeria has a youthful population, 68% is under the age of 25, who are technologically literate.

Nigeria has the second-highest unemployment rate in Africa, and there are concerns that the government may not be able to improve the situation. However, the country’s growing e-commerce market offers hope for the future.

The Nigerian government has recently brought in rules to clarify when large non-residential companies are liable for tax and under what conditions as Nigeria moves forward with charging foreign companies who provide digital services to Nigerians.

Nigeria’s economy dropped by 1.8% in 2020 but is set to grow by 2.5% in 2021 according to the IMF, and 2.3% in 2022. Meanwhile inflation is set to climb further from 13.2% in 2020 to 16% but is forecast to fall in 2022 to 13.5%.

Future e-commerce trends (2021-2025)

E-Commerce market size forecast ($US billion)
2021 14.2
2022 18.4
2023 22.8
2024 27.7
2025 33.1
E-Commerce spending per capita ($US)
2021 67
2022 85
2023 103
2024 122
2025 142
E-Commerce spending as % of GDP
2021 3.1
2022 3.6
2023 3.9
2024 4.2
2025 4.5

Nigeria

The E-Commerce Market

Top e-commerce segments 2019 | 2020

  1. Health & Beauty: 17% | 23%
  2. Airlines & Hotels: 41% | 22%
  3. Electrical Goods: 13% | 17%
  4. Homeware & Furniture: 8% | 11%
  5. Food & drink: 4% | 6%

Cross-border e-commerce

  1. Cross-border proportion of total e-commerce – NA
  2. Value of cross-border e-commerce ($US billion) – NA
  3. % of online shoppers who have shopped cross-border – 63%
E-commerce % of total retail
  • Nigeria 7%
  • Middle East & Africa 3.0%
  • World 20%
E-commerce completed on a mobile device
  • Nigeria 56%
  • Middle East & Africa 53%
  • World 53%

The Credit Card Split

  • Visa
  • Mastercard
  • Local Schemes
[{"label":"Visa","value":"19"},{"label":"Mastercard","value":"16"},{"label":"Local Schemes","value":"65"}]
  • E-commerce market size ($US billion) 9.9bn USD
  • E-Commerce spending per capita ($US) 48 USD
  • E-commerce spending as % of GDP 2.5%

The information on our Insights pages has been compiled by us in cooperation with Datamatics and Wright & Brown. The data shown is partially owned by us and partially owned by GlobalData. © 2021 by PPRO Financial Ltd. No data and information can be used for any further publication without the explicit approval of PPRO.

Nigeria

Local Payment Methods

BitPay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 PayPal Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Paysera Wallet Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PayU Type Bank transfer Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 2 Market relevance High Skrill Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Airtel Money Type Wallet Regions Asia Pacific, Middle East & Africa Market relevance High Allied Wallet Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Boku Type Carrier billing Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Mobiamo Type Carrier billing Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Paga Wallet Type Wallet Regions Middle East & Africa Market relevance High Razer Gold Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High SWIFT Type Bank transfer Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Verve Type Local payment card Regions Middle East & Africa JumiaPay Type Bank transfer Regions Middle East & Africa Market relevance Medium KongaPay Type Wallet Regions Middle East & Africa Market relevance Medium MTN Mobile Money Type Wallet Regions Middle East & Africa Market relevance Medium Secure Remote Commerce (SRC) Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance Medium BankIT Type Bank transfer Regions Middle East & Africa Boloro Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 G2A Pay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 NETELLER Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 PocketMoni Type Wallet Regions Middle East & Africa ReadyCash Type Wallet Regions Middle East & Africa Splitit Type Instalments Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3

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