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E-commerce’s Contribution to Nigeria Economy, the Challenges and Need for Government Intervention

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By Ezedi Udom

E-commerce platforms have proven to be critical enablers of economic growth and social development for Nigeria in spite of the myriad challenges occasioned by the tough operating environment.

A key player, Jumia is fostering cashless and financial inclusion by encouraging Nigerians to move from brick-and-mortar malls to selling and shopping online and making payment for goods online thereby promoting the digital economy.

With Jumia online marketplace, usage of electronic transactions in Nigeria continues to increase, banks are becoming more innovative with electronic banking products and services while more fintech companies are investing in the economy.

Jumia is promoting the growth of MSMEs and large businesses by offering sellers its online marketplace, logistics, and last-mile platforms to increase their customer base, reach the target market faster and become more competitive, profitable, and sustainable.

Support for enterprises and the Jumia system are solving the critical high unemployment problem, especially among the youth by creating direct and indirect jobs. Jumia’s over 5,000 employees form a significant critical mass of employment.

National Bureau of Statistics (NBS) reported that SMEs in Nigeria contributed about 48% on average to the national GDP in the last five years and accounted for about 50% of industrial jobs and nearly 90% of activities in the manufacturing sector.

E-commerce is becoming a potent tool for the government to optimize digitalization as a key component of economic diversification, and also to meet the new compelling need of enforcing social distancing as a key measure in flattening community transmission of COVID-19.

The Presidential Task Force on COVID-19 has issued several warnings of increasing number of unsuspected asymptomatic carriers of coronavirus with Nigeria now at “active community transmission” stage.

Thus, online shopping, digital payment/virtual transactions and online interactions hold the ace for the future to promote social distancing and avoidance of crowded places such as brick-and-mortar shopping malls, supermarkets, open markets and banking halls where the possibility of contracting the virus is high.

COVID-19 outbreak has significantly disrupted global supply chains among other activities. The Economist indicated that online retailers including Jumia boomed in the wake of the Ebola outbreak in Nigeria, in 2014, as more consumers shopped online for fear of contracting the deadly disease. Orders on Jumia reportedly tripled due to increased demand for hygiene products like hand-wash, bleach and other cleaning products.

The same trend also played out recently during the peak of lockdown in Nigeria. Scarcity of protective items like hand sanitisers, facemasks, gloves and reagents, and hoarding and price gouging of essentials like tissue paper and sanitary products was reported in some parts of Nigeria due to surge in demand amidst supply shortages.

Through its online marketplace and partnership with sellers such as Reckitt Benckiser, Procter & Gamble, Unilever, The Coca-Cola Company and other sellers, Jumia helped to mitigate supply crisis by facilitating movement of inventories from the factories to its warehouses and online marketplace and then to the consumers.

Jumia also ensured the sellers maintained fair pricing policy while it reported some sellers to the Federal Competition and Consumer Protection Commission over price gouging.

Jumia defied constant harassment of its field workers transporting groceries and other agricultural produce from the hinterland to the cities, by security agents enforcing interstate border movement restriction, who ignored government’s designation of e-commerce and logistics operators as essential service providers.

Jumia Food was on the move delivering food packages to millions of Nigerians observing lockdown, thanks to partnership with third parties like QSR outlets and kitchens.

With JumiaPay and Contactless Delivery platforms, social distancing and cashless transactions were significantly promoted, thereby limiting person-to-person contact and containing further spread of COVID-19.

Jumia’s Q1 2020 financials indicated that the e-commerce and e-payment system indeed increased demand for brands and caused uptake in delivery of essentials to more people. Sellers also sold faster while more brands and sellers were eager to join the Jumia marketplace and logistics/supply value chain to boost access to market.

There was also strong demand from offline convenience retailers to join the Jumia on-demand platform and increasing advertisers’ interest for online channels as a result of consumption shifting online.

Visa in a June 2020 survey affirmed that 71% of consumers interviewed among the banked population in Nigeria shopped online for the first time as a result of the pandemic.

However, despite showing high growth potential and occasional spikes in online shopping in crisis times, these cannot be interpreted as long-term sustainability for Nigeria’s retail e-commerce.

E-commerce operators are faced with challenges that are inimical to their growth and the larger economy given the interplay between e-commerce and MSMEs.

Dearth of critical infrastructure like roads, inefficient transportation and insecurity inhibit movement of groceries from rural areas where food crops are planted to the cities and movement of goods across distant locations. Erratic electric power supply and multiplicity of tax also increase the cost of doing business in Nigeria.

PricewaterCoopers in its June MSME Survey 2020 with the theme, Building to Last: Navigating MSME Growth and Sustainability – A New Decade, noted that lack of infrastructure, inadequate skilled manpower, multiplicity of taxes, high cost of doing business among others still persist and hindering SMEs growth and development.

Barriers to obtaining bank loans is a major obstacle to small businesses including e-commerce operators thereby limiting their capacity to expand their infrastructure. “In emerging markets and developing economies, 55% to 68% of formal SMEs are either unserved or underserved by financial institutions, leading to a total credit gap estimated to be USD5.1 trillion,” PwC noted.

It estimated the financing gap for Nigerian MSMEs to be about N617.3 billion annually (pre-COVID-19 pandemic), adding that, based on analysis of data from the CBN annual statistical bulletin, small businesses accounted for less than 1% of total commercial banking credit in 2018. The NBS added that less than 5% of SMEs have been able to access adequate finance for working capital and funding business growth/expansion.

Low consumer trust about the quality of online goods and the activities of cyber fraudsters as well as low purchasing power of Nigerians as a result of loss of income or job due to COVID-19 inhibit new customer acquisition and retention. Many times, ROI for huge marketing and advertising spend on customer acquisition is nil.

E-commerce platforms’ fatality has been recorded within the last eight years. For example, Efritin.com, an online marketplace, shut down after barely 16 months in Nigeria. Its Swedish investor, Saltside, attributed that they “didn’t get desired returns on their investment.”

Nevertheless, the time looks good to spur e-commerce growth in Nigeria. Forecasts show that online retail stores will grow due to expected influx of online shoppers due to post COVID-19 new normal.

But governments must promote an enabling environment for e-commerce and MSMES to thrive. Fix critical infrastructure such as roads, transportation, power and telecommunications. Ease of doing business initiatives including tax incentives for MSMEs, harmonisation of taxes, improved security and increased access to credits must be implemented.

Encourage adoption of online shopping and electronic payment among Nigerians, and digitisation of businesses to strengthen cashless and financial inclusion policy.

In light of the expected take-off of Africa Continental Free Trade Agreement (AfCFTA) regional trade market come January 2021, the growth of e-commerce directly impacts SMEs capacity, competitiveness and quality of services they render.

With Nigeria’s current online commerce estimated at $12 billion, and projection to reach $75 billion in revenues per annum by 2025, according to McKinsey, the economic outlook for the country looks good post COVID-19 and beyond. But removing barriers in the way of e-commerce and SMEs is exigent.

Ezedi Udom, a Business and Communications Expert, writes from Lagos 

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Valentine’s Day Made Easy: Perfect Gift Ideas for That Special Person

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Perfect Gift Ideas for Valentine’s Day

It’s that time of the year again! Love is in the air, vendors are rolling out extravagant Valentine’s packages, and let’s be honest, some people are preparing to oppress singles with their grand gestures. Flowers, chocolates, fancy dinner dates… all nice, but a bit predictable, right?

This year, why not switch things up? Whether it’s a partner, best friend, or even a sibling who deserves some extra love, there are so many creative ways to make them feel special beyond the usual. So here are fun and thoughtful gift ideas that will definitely keep a lasting smile on their faces.

  1. Thoughtful, Budget-Friendly Gifts

Not everyone wants to spend a fortune on Valentine’s Day, and guess what? You don’t have to! If you’re thinking budget-friendly but meaningful, consider handwritten love letters, a scrapbook of your favorite memories together, or a personalized playlist of songs that remind you of them. Even a simple breakfast in bed can be a winner! It’s truly the thought that counts.

  1. The Gift of Entertainment

Now, let’s talk about the ultimate Valentine’s Day package. You know how some people aren’t really into flowers, chocolates, or even date nights? Well, have you considered giving them the package of all packages, the GOtv Supa Plus bouquet? Think about it, unlimited access to all their favorite channels, from romantic movies to action-packed series, sports, and entertainment. Whether your special person loves telenovelas, football, or Nollywood dramas, GOtv Supa Plus has something for everyone.

Imagine gifting them a month  of uninterrupted premium entertainment. That means they get to enjoy all their favorite shows while thinking of you every time they press play. And let’s be honest, nothing beats the joy of knowing your gift keeps on giving even after Valentine’s Day has passed!

  1. The Romantic Stay-In Date Night

Who says you have to step out to have a memorable Valentine’s Day? Sometimes, privacy is the real luxury. Picture this,  you tell your special person to pack a bag and come over for a cozy, romantic night in. Light some candles, sprinkle petals on the floor, and set up the perfect ambiance. Then, grab your softest blanket, order (or cook) your favorite meals, and tune into a romantic show or a thrilling movie. Whether you’re watching a classic rom-com, an action flick, or a telenovela that makes you both emotional, it’s about creating a shared experience. Plus, you don’t have to worry about crowded restaurants or long queues, just pure quality time.

  1. A Subscription to Their Favorite Hobby

Valentine’s Day gifts should be personal, and nothing says “I know you” better than a gift that aligns with their interests. For those who love to cook, a GOtv subscription unlocks access to food and lifestyle channels like Food Network, where they can discover new recipes, cooking tips, and even the latest food trends. Get a GOtv Max subscription for as low as ₦7,200 and keep your special person hooked on their favourite cooking shows.  For the sports lover, keep them in the game with GOtv Supa Plus package available for ₦15,700 and for the fashion lover, at ₦9,600, the GOtv Supa offers a lineup of fashion shows and trend-spotting channels, making it easy to stay inspired.

  1.  Go All Out with a Grand Gesture

On the flip side, if you want to make a big splash this Valentine’s Day, then go all out! Plan a surprise getaway, book a spa day, or even throw a private dinner with a chef making your favorite dishes. If your person loves grand romantic gestures, this is your time to shine. Just make sure it’s something they’ll genuinely enjoy, not just what looks good for Instagram.

So, whatever you choose, make sure it’s something that speaks to their heart and their interests. Whether it’s a thoughtful DIY gift, a romantic date night, or a subscription that fits their hobby, it’s the thought that truly counts.

When it comes to the ultimate gift, GOtv is the icing on the cake. With just a few clicks, you can subscribe, upgrade, or reconnect by simply downloading the MyGOtv app, or dial *288# to get started. Plus, with the GOtv Stream App, they can enjoy their favorite shows anytime, anywhere. Trust GOtv to keep the entertainment flowing long after valentines is over!

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Access Bank Lagos City Marathon 2025: A Tribute to Legacy, A Celebration of Resilience

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Herbert Wigwe Access Bank Lagos City Marathon 2025

As Lagos gears up for the highly anticipated Access Bank Lagos City Marathon on Saturday, February 15, 2025, excitement and emotion run high. This year’s edition is much more than a race, it is a moving tribute to legacy and a celebration of resilience. Under the evocative theme “Miles to Memories,” every stride taken by the runners transforms physical distance into lasting recollections, blending athletic endurance with heartfelt remembrance of a visionary leader.

A Race that Transcends the Finish Line

Since its inaugural run in 2016, the Access Bank Lagos City Marathon has evolved from a local initiative into a global phenomenon. Originally established by Access Bank in collaboration with the Lagos State Government to promote healthier lifestyles, the event has grown into a symbol of unity, progress, and economic vitality for both Lagos and Nigeria. Today, the marathon not only places Lagos on the global sporting map but also showcases how major sporting events can drive tourism and stimulate business growth. As a Gold Label Marathon certified by the Association of International Marathons and Distance Races (AIMS), it stands as a testament to the powerful synergy between sport, community, and commerce.

Local businesses, from hotels and restaurants to vendors and transport providers, thrive during the marathon weekend, benefiting from increased patronage as communities come together to support and celebrate the event. This collective participation reinforces the idea that when people unite around a common purpose, the rewards are shared by all. 

Honoring a Visionary: Remembering Herbert Wigwe

This year, the marathon carries added emotional significance.  It marks the first anniversary of the passing of Herbert Wigwe, the late Group Chief Executive Officer of Access Holdings PLC,  who was a transformative force behind the event. On the morning of February 10, 2024, a tragic helicopter crash claimed the lives of Herbert Wigwe, his wife, his son, and Abimbola Ogunbanjo, the former Group Chairman of the Nigerian Exchange Group PLC. The loss sent shockwaves throughout the nation, leaving an indelible void in the hearts of many Nigerians.

Despite the deep sense of loss, Herbert Wigwe’s legacy continues to inspire. In the wake of the tragedy, concerns arose that Access Bank might reconsider its sponsorship of the marathon. Instead, in a poignant gesture of remembrance and commitment, Access Bank, together with the Lagos State Government, has reaffirmed its support for the marathon. This enduring dedication ensures that Wigwe’s dreams and aspirations remain an integral part of every step taken by the runners. 

“Miles to Memories”: A Journey of Emotion and Endurance

The theme “Miles to Memories” perfectly encapsulates the spirit of this year’s marathon. It suggests that every mile covered is imbued with personal and collective memories, reminders of challenges overcome, of unity celebrated, and of hope nurtured for a better future. For many participants, the race is a chance to commemorate Herbert Wigwe, whose visionary leadership not only transformed Access Bank but also reshaped the sporting landscape of Lagos. His enduring commitment to community development, healthy living, and economic empowerment continues to serve as a beacon for all who aspire to make a positive impact.

Each runner’s journey on the race day acts as a bridge between past and future, where the physical act of running becomes a metaphor for overcoming adversity and building a hopeful tomorrow. The event stands as a tribute not only to athletic excellence but also to the unyielding human spirit that continues to rise in the face of loss.

From Humble Beginnings to Global Prominence

When Access Bank and the Lagos State Government first partnered in 2016 to host the marathon, their goal was simple: to encourage a healthier lifestyle among Lagosians. Under Herbert Wigwe’s visionary leadership, the event quickly grew in stature. Today, it has attracted over 600,000 registered athletes from 14 countries, establishing itself as one of Africa’s most prestigious road races. This remarkable evolution is a testament to the power of visionary leadership, community engagement, and a relentless pursuit of excellence.

The marathon’s growth from a local initiative to a globally recognised event highlights how passion and determination can transform a modest idea into an internationally celebrated movement. Lagos has firmly established itself as a marathon city renowned for its energy, hospitality, and unwavering commitment to progress.

Herbert Wigwe’s Vision: A Marathon for Unity & Progress

Herbert Wigwe’s influence on the Access Bank Lagos City Marathon remains as palpable today as ever. During the 2021 edition, he stated:

“As one of the leading banks in Nigeria and indeed Africa, it is imperative for us to support the economic and social development of the communities in which we operate. Hence, we have sponsored the Access Bank Lagos City Marathon to make Lagos more attractive to tourists and investors alike. We have also used this platform to create jobs and opportunities for thousands in the state.”

These words, imbued with hope and ambition, continue to guide the event. More than merely a race, the marathon has become a living legacy of Wigwe’s unwavering commitment to community development and the transformative power of sport. His visionary approach has paved the way for countless initiatives that enrich lives, create employment opportunities, and foster pride and unity among Nigerians.

Herbert Wigwe’s legacy is not confined to history, it lives on in the hearts of those he touched and in the strides of every runner who participates in the marathon. His vision for a healthier, more prosperous Lagos inspires all, ensuring that his contributions will never be forgotten. Every cheer from the crowd, every drop of sweat on the pavement, and every moment of reflection during the race stands as a tribute to a man dedicated to progress, unity, and excellence.

The Access Bank Lagos City Marathon 2025 is more than a sporting event—it is a movement that transforms challenges into triumphs and distances into memories. It celebrates life, resilience, and the indomitable spirit of a community marching forward, one determined step at a time.

Sponsors: The Pillars Behind the Marathon

Central to the success of the Access Bank Lagos City Marathon are its dedicated sponsors. Access Bank, the major sponsor, has remained steadfast in its commitment to community development, ensuring that the marathon continues to be a platform for positive change. In partnership with the Lagos State Government, the event has grown into a major contributor to the local economy and an enduring source of inspiration for athletes and citizens alike.

Their unwavering support has been crucial in maintaining the high standards of the marathon, including its prestigious Gold Label status from AIMS. This commitment not only honours Herbert Wigwe’s legacy but also ensures that the marathon continues to inspire future generations to embrace a healthy, active lifestyle while cherishing the memories forged along the way.

Community, Commerce, and the Spirit of Resilience

The Access Bank Lagos City Marathon is a celebration of more than athletic prowess, it is a testament to the power of community and the resilience of Lagosians. The event has consistently demonstrated that when communities unite, remarkable achievements are possible. By boosting local tourism and generating business opportunities, the marathon has had a transformative impact on the city’s economy.

During marathon weekend, local businesses such as hotels, restaurants, and retail outlets experience a surge in activity as visitors from around the globe flock to Lagos. At the same time, the event showcases the city’s vibrant culture on an international stage, reinforcing the idea that sport and commerce can work hand in hand to drive progress.

The Journey Ahead: Legacy, Resilience, and Unity

As runners prepare to take to the streets of Lagos on February 15, 2025, the atmosphere is charged with a profound sense of purpose. The marathon is not just a competition; it is a journey of remembrance and unity, where every stride honors the memory of Herbert Wigwe and every mile becomes a cherished memory. The theme “Miles to Memories” reminds participants that the race is as much about personal triumph as it is about collective resilience and hope.

In the face of past tragedies and challenges, the marathon stands as a beacon of hope. It is a day when the nation comes together to celebrate life, honor legacy, and build a future founded on unity and progress. Each runner carries with them the spirit of determination and the memory of a leader who believed in the power of community and the strength of collective ambition.

In celebrating “Miles to Memories,” the Access Bank Lagos City Marathon 2025 encapsulates the journey from loss to legacy, from grief to hope, and from memories to future milestones. With the steadfast support of sponsors like Access Bank and the Lagos State Government, this marathon not only delivers an exhilarating athletic challenge but also forges enduring memories that will inspire generations to come.

As the starting gun fires and runners take their first steps on the vibrant streets of Lagos, they are not merely participating in a race, they are becoming part of a legacy. Every mile traversed is a reminder of the resilience, unity, and indomitable spirit that define this great city. And in every memory made, the legacy of Herbert Wigwe lives on, guiding each runner toward a brighter, more hopeful future.

Herbert Wigwe may be gone, but his vision continues to run through the veins of every Lagosian and every athlete crossing the finish line. In Lagos, every mile is a memory, and every memory is a step toward a better tomorrow.

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The Power Trio: How Sales, Finance, and Marketing Rescue PR from the ROI Dilemma

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The Power Trio PR from ROI Dilemma

By Philip Odiakose

Over the years, the conversation around PR measurement has evolved, yet one persistent challenge remains — how to prove the financial return on investment (ROI) of public relations efforts. I have shared my thoughts on this topic across multiple LinkedIn posts, and I felt compelled to provide a structured education on the subject.

Measurement education is a core pillar of AMEC Measurement and Evaluation , and as a strong advocate for data-driven PR, I believe it is crucial to guide PR professionals through this recurring challenge.

The reality is simple: If sales are not part of your key performance indicators (KPIs), then Return on Objective (ROO) should be your holy grail, not ROI. However, for PR campaigns where sales are indeed a primary goal, PR professionals cannot work in isolation — they need to engage with the “three wise men”: Sales, Finance, and Marketing.

A fundamental mistake many PR practitioners make is attempting to justify PR’s success using ROI without understanding the financial principles behind it. ROI, in its true form, is a financial metric that calculates the profitability of an investment using the formula: ROI (%) = (Net Profit / Cost of Investment) x 100.

For PR professionals aiming to showcase ROI, collaboration with the Finance team is essential to align media metrics with revenue generation. However, in most cases, PR is not a direct sales function, which means using ROI as a blanket metric leads to misinterpretation and misplaced expectations.

This is why AMEC’s Barcelona Principles (which emphasize outcome-based measurement over outdated methods) encourage PR professionals to focus on measurable objectives rather than vanity metrics like Advertising Value Equivalency (AVE). For those unfamiliar with these principles, I strongly recommend exploring them as a foundation for modern PR measurement.

One of the most misleading approaches in PR measurement is relying on AVE to demonstrate ROI. To put this into perspective, AVE in PR is like measuring the quality of a meal based solely on the price of its ingredients. Just because a dish contains expensive components does not mean it tastes good or satisfies the customer.

Similarly, AVE assigns a monetary value to media coverage based on ad rates but fails to measure the true impact, sentiment, or effectiveness of PR efforts. If a PR professional presents AVE as ROI, they are essentially equating visibility with tangible business outcomes, which is a flawed and outdated perspective. The goal should always be to measure what matters — impact, sentiment, engagement, and business outcomes — rather than placing a fictitious monetary value on earned media.

As a PR measurement specialist with over a decade of experience, I have consistently advocated for the prioritization of ROO over ROI for PR campaigns that do not have direct sales objectives. PR’s role is often about shaping perception, building credibility, and enhancing reputation — elements that do not always have an immediate or direct financial impact.

ROO provides a structured framework for evaluating PR performance based on predefined, measurable objectives. By aligning PR efforts with specific business goals — whether it be increasing brand awareness, driving website traffic, improving customer sentiment, or strengthening stakeholder relationships — PR professionals can provide meaningful insights without force-fitting sales metrics where they do not belong.

For PR to demonstrate true ROI when necessary, it must integrate seamlessly with Sales, Finance, and Marketing. Without correlating PR metrics with their data, PR teams cannot accurately tell the story of their contribution to revenue generation.

Marketing provides valuable insights into lead generation, Sales tracks conversions, and Finance ensures financial accountability. When these three functions work together, PR professionals can move beyond justifying their efforts with media impressions and start proving their impact in terms of business growth. This is why aligning client or executive expectations from the onset is critical.

By setting realistic measurement parameters, PR professionals can avoid the trap of being asked to prove ROI on campaigns that were never designed to drive direct sales in the first place.

The path to effectivePR measurement is rooted in education, collaboration, and the right frameworks. We must continue advocating for methodologies that reflect PR’s strategic value — beyond press clippings, beyond AVEs, and certainly beyond misaligned expectations.

Measurement is not about justifying PR’s existence; it is about demonstrating PR’s impact with the right metrics that align with business goals. As PR professionals, our focus should always be on setting SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) objectives that align with organizational priorities. This way, measurement becomes a tool for strategy rather than just a reporting mechanism.

As we move forward, I encourage PRprofessionals to embrace continuous learning, engage in industry conversations, and challenge outdated measurement methods. PR measurement is not static — it evolves with trends, technology, and business needs. Let us elevate our practice by ensuring that measurement is not an afterthought but an integral part of our communication strategy from the start.

Would love to hear others’ thoughtson this!

Philip Odiakose is a leader and advocate of PR measurement, evaluation and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMECNIPR, AMEC Lab Initiative and AMCRON

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