FG Sees 477% Rise in Nigeria’s e-Commerce Revenue to $75bn in 2025
By Adedapo Adesanya
Nigeria’s e-commerce revenue is expected to rise by 477 per cent to $75 billion in 2025 from the current $13 billion per annum, according to a forecast presented by the Federal Ministry of Industry, Trade and Investment.
The projection was given by Mrs Evelyn Ngige, Permanent Secretary of the ministry on Tuesday in Abuja at the second national e-commerce roundtable organised by the ministry.
Mrs Ngige, while speaking at the event themed e-Commerce in Post COVID-19 Economy, Potential Change in Business Process Outlook and Shifting Domestic and Global Policies on Commodity Trade, pointed out that Nigeria’s e-commerce has grown from 14 per cent in 2019 to 17 per cent in 2020.
The roundtable’s emphasis is on the development of the non-oil sector to generate employment and sustainable revenue earnings.
In a keynote address, the permanent secretary, represented by Mr Suleiman Audu, Director, Commodities and Export Department (CED) of the ministry, said the ministry “is 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).
“Interestingly, e-commerce provides an alternative to sustain businesses and preserve millions of jobs in the face of COVID-19 challenge.
“For instance, in China, e-commerce companies played a key role in the supply of food and other essential commodities to residents of Wuhan during the knockdown period in 2020.
“In addition, Amazon, a US-based company, as a leading e-commerce company in the world, expanded and employed additional 175,000 new workers during the period due to increasing online demands for goods and services.”
However, she expressed displeasure on the shutting down of many industrial facilities, restriction of goods and movement and disruption of the global supply chain due to the economic effect of the global pandemic.
This, she said no doubt brought about a rise in the unemployment rate, a decline in revenue and an increase in the food security crisis.
The permanent secretary said the roundtable would widen its scope to cover emerging issues in the e-commerce landscape and implications for Nigeria, particularly relating to the operational, regulatory framework, and other key enablers.
She enjoined all to be forthcoming with ideas to guide policymakers, regulators and key players in the e-commerce ecosystem.
This is to enable them to provide the required enabling environment and incentives in line with global best practices for businesses to thrive in Nigeria.