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
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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