Nigeria’s e-commerce boom: who wins, who struggles, and what’s next?

In 2015, I took my first step into e-commerce as a consumer, ordering my first smartphone online—a Konga purchase that delivered an iPhone 6 Plus straight to my office at Voice of Nigeria in Ikoyi. It was a payment-on-delivery transaction, the norm at the time, where trust was built through face-to-face exchanges rather than digital guarantees. 

A few years later, in 2018, Zinox Technologies acquired Konga, signaling a major shift in Nigeria’s e-commerce landscape. It wasn’t just a business transaction—it was a marker of how digital commerce was evolving, consolidating, and preparing for what was to come.

Fast forward to today, and the transformation continues. This deep dive—the third in the series as part of my new editorial rhythm with 234Digest—explores the pulse of Nigeria’s e-commerce sector, unpacking its growth, challenges, and the forces shaping its future. From mobile-first shopping and fintech-powered transactions to the surge of B2B platforms redefining retail, the landscape is shifting faster than ever.

How are businesses and consumers adapting? What hurdles remain? And where does Nigeria’s digital economy go from here? Let’s break it down.

Samuel Okocha, Editor, 234Digest here.

Nigeria’s e-commerce sector is thriving, with the market valued at $8.53 billion in 2025 and projected to grow at a compound annual rate of 11.8% through 2033, according to Data Insights Market and Market Report Analytics.

This surge is powered by a young, smartphone-savvy population and rapid expansion in internet access. At the start of 2025, 107 million Nigerians were online, accounting for 45.4% internet penetration, according to DataReportal. However, that also means 128 million people—over half of the population—remained offline, highlighting significant connectivity gaps, especially in rural areas.

Mobile growth and broadband challenges

At the same time, GSMA Intelligence reports that Nigeria had 150 million mobile connections at the beginning of 2025, equal to 64% of the total population. While multiple SIM ownership is common, many of these connections are now classified as broadband—running on 3G, 4G, or 5G networks.

However, broadband access doesn’t always translate to mobile internet usage, as some plans still prioritize voice and SMS over data access. This affects e-commerce expansion beyond major cities, where digital inclusion remains a challenge.

What are Nigerians buying online

Beyond connectivity, consumer spending trends are shaping Nigeria’s e-commerce boom.

According to German business data service Statista, electronics ranked as the largest online spending category in 2023, valued at $2.5 billion. Fashion followed as the second-largest sector, generating roughly $1.3 billion in sales. Other leading categories included personal and household care, furniture, and physical media.

Electronics e-commerce saw the highest growth, increasing by 23% from the previous year, while beverage-related e-commerce shrank by about 10%—a sign that Nigerians are prioritizing durable goods over consumables.

Retail giants like Jumia, Konga, SLOT Systems, and Ajebomarket have capitalized on Nigeria’s demand for electronics, expanding marketplace offerings to include Buy Now, Pay Later financing and digital wallet transactions.

Fintech & e-commerce enablers driving growth

Beyond digital wallets, the market is witnessing the rise of fintech-powered e-commerce enablers—from payment platforms to logistics providers enhancing delivery networks.

A significant driver of this evolution is Buy Now, Pay Later (BNPL) solutions, which have gained traction among Nigerian shoppers. In 2024, Jumia partnered with Newedge (Easybuy) and CredPal, two prominent fintech players, to offer BNPL options in Nigeria.

Through these alliances, Jumia is expanding access to flexible payment solutions, allowing shoppers to split payments over a defined period rather than paying upfront. This model makes purchases more accessible, particularly for middle-income earners navigating inflation-driven cost pressures.

Beyond affordability, these partnerships are expected to accelerate the adoption of cashless transactions within Jumia's marketplace—reinforcing a broader industry trend where digital wallets are gaining ground while cash-on-delivery is steadily declining.

From cash-on-delivery to digital wallets

For many Nigerians, payment-on-delivery was the first step toward e-commerce trust.

I still remember my first online purchase in 2015—an iPhone 6 Plus from Konga, delivered straight to my office at Voice of Nigeria in Ikoyi, Lagos. That hands-on transaction built confidence in digital shopping, reinforcing why early platforms leaned on cash-on-delivery models to win consumer trust.

By 2018, Konga was acquired by Zinox Technologies, a pioneering Nigerian company founded in 2001 as the country’s first internationally certified computer manufacturer and a major player in ICT and power solutions.

Zinox's move was widely seen as a landmark deal that could unlock the massive potential of e-commerce in Nigeria, positioning Konga for a new phase of growth and competition with longtime rival Jumia. Indeed, the acquisition signaled the sector’s rapid consolidation, reinforcing the demand for more scalable, secure e-commerce solutions.

Now, digital payments are gaining grounds.

Online payment preferences: cards, transfers & cash

As Nigeria’s e-commerce sector expands, payment trends reveal how consumers navigate transactions online. According to Statista, cards accounted for 37% of online retail payments in 2023, making them the most widely used payment method for digital transactions.

However, bank transfers and cash payments remain significant, representing 29% and 16% of total e-commerce transactions, respectively. Despite a push toward digital finance, cash-on-delivery remains a popular choice for many Nigerian shoppers—particularly those who prefer physical verification before completing a purchase.

B2C vs. B2B: market expansion & the role of digital platforms

Nigeria’s e-commerce sector is largely driven by the business-to-consumer market, but business-to-business e-commerce is rapidly gaining ground—a shift exemplified by the meteoric rise of Omniretail.

The company operates in Nigeria, Ghana, and Côte d’Ivoire, bridging the gap between manufacturers and informal retailers through B2B e-commerce and embedded finance solutions.

Omniretail recently topped the Financial Times’ 2025 list of Africa’s fastest-growing companies, with a 795.9% growth rate from 2020 to 2023. Revenue surged from $280,000 to $120.15 million.

This rapid growth highlights increasing demand for digital procurement and financing platforms in Nigeria, reinforcing how expanding payment gateway options and logistics infrastructure are driving both B2C and B2B market evolution.

"Competition is intense" notes Data Insights Markets in its Nigeria E-commerce Industry report, "but the market’s size and growth trajectory signal significant opportunity for both established players and new entrants to participate in this dynamic and rapidly evolving sector."

Consumer trust & the challenge of fraud

Despite Nigeria’s e-commerce boom, consumer trust remains a major hurdle, particularly when it comes to payment security and reliable deliveries.

For many shoppers, fraud and failed transactions are still very real concerns. Terver Dominic, a resident in Abuja, experienced this firsthand.

"I saw this enticing advert on guinea fowl—roasted, ready to eat, and way cheaper than what I was used to. It was about 3,000 to 5,000 naira less than the usual price, supposedly coming straight from their farm. I kept seeing the ad on Facebook, and eventually, I decided to give it a trial," he recalls.

Dominic contacted the seller via WhatsApp, sent his payment details, and was told the delivery would arrive the next day. But when the time came—nothing.

"I chatted up the guy again. I was like, 'What's happening? Well, to cut the whole long story short, I just gave up," he says.

That experience, now a year old, reflects a larger trust issue within Nigeria’s e-commerce landscape.

Can consumer trust and regulation keep up

Despite rapid growth, infrastructure and regulation remain key challenges.

Delivery networks and dispute resolution frameworks need improvement, while government efforts to expand digital infrastructure vary significantly by region.

With 54.6% of Nigeria’s population still offline, how quickly can the country close the digital divide to sustain e-commerce growth?

The big question is:

Can Nigeria’s e-commerce sector maintain its rapid momentum, or will infrastructure bottlenecks slow its expansion?

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