Economy
Lagos Leads in Volume of Online Food Orders—Jumia Food Index
By Adedapo Adesanya
Retail giant, Jumia, has published its first Nigeria Food Index, showing the impact of the coronavirus (COVID-19) pandemic on food trends in Nigeria with an increase recorded in online delivery.
The report, released today, showed that the online food delivery is changing habits in unexpected ways for businesses and consumers due to the pandemic, showing the growing popularity of fast food, coupled with the growing trends for convenience and value for money which have opened up opportunities for the food market in Nigeria.
The report indicated that the country’s agricultural sector experienced a major boom in 2019, significantly responsible for the 90.23 per cent contribution made by non-oil sectors to Nigeria’s Gross Domestic Product (GDP).
The index further showed that the food and grocery retail market had total revenues of $44.9 billion, representing a compound annual growth rate (CAGR) of 8.7 per cent in the last eight years.
Similarly, the report revealed that overall grocery retailing continues to expand, as consumers seek comfort and convenience when shopping for food. The food segment was the market’s most lucrative, with total revenues of $33.7 billion, equivalent to 75 per cent of the market’s overall value.
It also showed that online food delivery is gaining momentum through companies such as Jumia Food. With the outbreak of the COVID-19 pandemic, the demand for food rose significantly, especially online food delivery as a result of the lockdown and social distancing guidelines. This was because many people relied heavily on food delivery as opposed to physical shopping in grocery markets.
The report highlighted two major drivers of the growth observed in 2020 – demography and the COVID-19 lockdowns. While with a growing population averaging 18 years old, a new generation of Nigerian middle-class consumers are spending more money online on food and grocery services, the lockdowns induced by the COVID-19 pandemic also contributed to this evolution in habits.
The report further highlighted that, while most restaurants are popular in Lagos, Abuja, Port Harcourt and Ibadan, Lagos leads in terms of volume of online food orders.
It also showed among others, that pizza, Chinese delicacies and shawarma are the most promising cuisines. In terms of peak periods, lunch leads in the time of orders with 65 per cent; weekdays record the biggest volume in orders, peaking on Wednesday at 16 per cent; males place more orders (56 per cent) than females (44 per cent) and Port Harcourt leads in delivery timing at 26 minutes.
The index also showed that while Kentucky Fried Chicken (KFC), Cold Stone Creamery and Pizza Hut come out as the most popular international brands in the country due to consumers’ proclivity to chicken-related orders, Chicken Republic, The Place, Kilimanjaro, Sweet Sensation and Drumstick are the most popular local food vendors due to the affordability of their offers.
Jumia explained that the positive trend recorded in the agricultural sector offers the prospect of increased jobs, greater prosperity, reduced hunger and improved opportunities for Nigerian farmers and entrepreneurs to participate in the global economy.
Over the years, Nigeria’s growing online audience has seen an increase in international brands setting up shop to tap into the growing middle-income segment. Direct investments from players such as KFC, Cold Stone Creamery and Pizza Hut have been achieved.
Online food delivery players such as Jumia have also played a key role in shaping supply chains and opening up the markets to new entrants. Local producers and restaurants have embraced this evolution and reached new consumers as well as grown their businesses in spite of these challenging times.
“This pandemic crisis has shown the world that online food delivery is not just a commodity, but a necessity. The food business adapted quickly to the new normal, by availing contactless and cashless deliveries,” said Mr Shreenal Ruparelia, Chief Commercial Officer, Jumia Food.
“We also started to provide support to local food vendors to keep their businesses running during this difficult time. With our food partners, we will continue to deploy capabilities across the food value chain to ensure consumers buy food online safely and at the right price, in line with the theme of this year’s World Food Day celebration of ‘Grow, Nourish, Sustain Together,’” added Mr Ruparelia.
Nigeria’s population is expected to double over the next 30 years at a growth rate averaging around 2.3 per cent a year. With its diversification plan from oil production, the country is set to witness growth in a large consumer market, such as the food and grocery retail market.
Jumia Food is Africa’s largest food delivery company operating in nine countries on the continent. The consumers can order restaurant meals, groceries, drinks, pharmacies, and supermarkets, having them delivered in less than 45 minutes.
By Adedapo Adesanya
The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.
Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.
Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.
There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
By Adedapo Adesanya
The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.
According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.
The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.
The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.
On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.
As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).
However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.
Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.
On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
By Dipo Olowookere
Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.
The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.
The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.
At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.
Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.
Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.
The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.
On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.
Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN