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%

Nigeria

Local Payment Methods

BitPay Type Wallet Regions Asia Pacific + 5 PayPal Type Wallet Regions Asia Pacific + 5 Market relevance High Paysera Wallet Type Wallet Regions Asia Pacific + 5 Market relevance High PayU Type Bank transfer Regions Asia Pacific + 4 Market relevance High Skrill Type Wallet Regions Asia Pacific + 5 Market relevance High Airtel Money Type Wallet Regions Asia Pacific, Middle East & Africa Market relevance High Allied Wallet Type Wallet Regions Asia Pacific + 5 Market relevance High Boku Type Carrier billing Regions Asia Pacific + 5 Market relevance High Mobiamo Type Carrier billing Regions Asia Pacific + 5 Market relevance High Paga Wallet Type Wallet Regions Middle East & Africa Market relevance High Razer Gold Type Wallet Regions Asia Pacific + 5 Market relevance High SWIFT Type Bank transfer Regions Asia Pacific + 5 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 + 5 Market relevance Medium BankIT Type Bank transfer Regions Middle East & Africa Boloro Type Wallet Regions Asia Pacific + 5 G2A Pay Type Wallet Regions Asia Pacific + 5 NETELLER Type Wallet Regions Asia Pacific + 5 PocketMoni Type Wallet Regions Middle East & Africa ReadyCash Type Wallet Regions Middle East & Africa Splitit Type Instalments Regions Asia Pacific + 5

Search for another region or country