Nigeria’s e-commerce market, with a valuation of $9.54 billion in 2025, has grown into a dynamic and intensely competitive arena where both local and international firms are fighting for dominance. With a population of more than 200 million, many of whom are young, tech-savvy, and increasingly internet-connected, the market has enormous potential and is among the most lucrative in Africa. There is fierce competition for this opportunity, though, as players of all sizes strive to take advantage of the enormous potential while juggling the challenges of staying afloat.
Several factors make Nigeria an attractive hub for e-commerce. The adoption of online shopping has been greatly aided by a sharp increase in smartphone usage and internet access. Mobile phones are the main tool used for connectivity, and more than 50% of Nigerians currently have access to the internet. In October 2024, there were 134.27 million mobile subscriptions, 134.78 million internet subscribers, and 140 million smartphone users anticipated by 2025. Consumer behavior has changed as a result, with a sizable portion of the populace using digital platforms in search of convenience, lower costs, and a wide range of products.
Navigating the market amidst prospective future outlook.
Looking at the sector’s projection, the market is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.82% from its 2025 valuation of $9.54 billion to $16.68 billion by 2030. Statista forecast the eCommerce Market to reach US$7.43bn in 2025, with an expected annual growth rate (CAGR 2025-2029) of 7.71%, resulting in a projected market volume of US$10.00bn by 2029. The market is expected to be worth US$1,773.00 billion in 2025. It is also anticipated that the eCommerce market would have 28.6 million users by 2029, with a user penetration rate of 13.2% in 2025 and 15.0% in 2029.
With this immense potential, the market landscape is no longer an easy playing field. Only the creative, resilient, and well-funded players have a shot to succeed in this highly competitive market. The local e-commerce landscape is populated by big companies like Jumia, Jiji, Konga, Cars45, and PayPorte alongside smaller but aspirational firms like Kara, Slot.ng, and Gloo.ng. These platforms are leveraging a variety of strategies, including creative solutions, robust marketing, and regional approaches, to gain market share.
Global giants intensify competition in the market.
Jumia, which is frequently referred to as the “Amazon of Africa,” has been a dominating palette in the market, taking advantage of its first-mover advantage. The business has established a solid reputation for reliability and continues to capitalize on its broad product offerings and wide customer base. Its dominance is threatened by issues like high operating costs, logistical inefficiencies, and competition from new entries. Konga, on the other hand, has concentrated on a hybrid approach that combines online and physical shopping to give clients both digital convenience and accessibility. Despite not having the same financial muscle as the giants, smaller companies are establishing their niche in specialized markets.
Furthermore, the entry of global giants has added to the competitive heat. While local companies like Jumia, Konga, and PayPorte are vying for market share, global giants like Amazon and AliExpress are tapping into Nigeria’s market potential. The latest international e-commerce company entering the Nigerian market is Temu, a Chinese platform that entered the market in November 2024. Temu’s direct-from-manufacturer business strategy, which offers a large selection of goods at competitive costs, is enabling it in the market.
Related Article: Future of e-commerce in Nigeria’s economy
These foreign competitors challenge local firms with their extensive resources, advanced technology, and well-established worldwide supply chains. Nevertheless, each platform is deploying unique strategies to capture consumer attention, from discounts and flash sales to loyalty programs and free delivery offers. The future of Nigeria’s e-commerce market looks promising, but only for the players who can adapt to the dynamic landscape. This is far from the end of the race, as the industry is expected to continue expanding as Internet Access deepens and the use of digital payments grows. Those who invest in innovation, gain customers’ trust, and provide value to Nigeria’s diverse range of consumers will ultimately emerge victorious.