Category: e-Business

The impact of e-commerce on the Nigerian economy is getting bigger and increasingly prominent by the day. E-commerce has not only given rise to a league of sophisticated digital consumers, but also a league of digital market entrepreneurs, and lately disrupting the informal retail sector, where activities of market aggregators like Alerzo are giving retailers improved market experience.

Giving credence to this is recent data by Nigeria Inter-Bank Settlement System Plc (NIBSS), which shows that e-commerce brands and fintechs are driving growth in agency banking with Point Of Sale (POS) transactions. According to the body that tracks payment volumes and value through the Nigeria Instant Payment System and Point of Sales terminals, N53.83tn was transferred through the NIP system, while N1.15 trillion was processed through PoS terminals in the first two months of 2022. It said individuals used electronic channels 86.57% more in the first two months of 2022 than they did in the corresponding period of 2021.

Also, GSM Association, the global body for telecommunication companies, said mobile money transactions hit more than $1 trillion in 2021, with Nigeria and other countries in the Sub-Saharan region contributing N697.7bn to total mobile money value during the year. “Between 2012 and 2021, the number of active agents grew more than 10 times, from 534,000 to 5.6 million, unlocking access to financial services for the most underserved customers,” it said.

Industry analysts have observed this progressive shift away from cash transactions in the economy, which is largely driven by rising mobile internet penetration, investment by banks and other payment-based fintech companies in payment technology infrastructure. “You can’t separate the impact of the e-commerce community from the significant leap in internet based transactions recorded in recent months. There’s a lot of investment going into this sector; e-commerce companies invest hugely in payment service to give their customers a complete brand experience. Not just that, such investment increases financial inclusion among Nigerians,” said Industry analyst Samuel Elegba.

The Nigerian informal retail sector is a huge market estimated at over $100b, however, transactions in the market are largely done in cash. With B2B e-commerce companies springing up to bridge the age-long digital gap in the sector, the expert said the rate of instant payment and PoS transactions could triple the current figures in the next six months.”If you look at the channels responsible for the improved data by NIBSS, you will see that they are tools that are very much part of e-commerce services. With the recent rate of inroad by B2Bs into the informal market, these transaction figures will keep increasing monthly, and we could have more than triple the current number of transportations within the next six months.

“Like I do say, informal retail will contribute a lot to Nigeria’s digital economy due to the rate of transactions in that sector. Imagine our digital marketplace with just 20% of the cash transactions in the retail market brought onboard. Products like Alerzopay and others coming in, will surely lead to a major boost in the sector. The overall good in this is that the foundation for the digital economy boom is taking shape,” he said.

According to Per data from research consultancy, Briter, B2B ecommerce ventures in Africa secured more than $256 million in disclosed funding in 2021. Projecting the industry, Statista Digital Market Outlook said e-commerce penetration rate in Africa will continue to increase, and by 2025 reach around 40%, while the overall African market is expected to reach $180 billion by 2025.

Consumer lending company in Nigeria, Zedvance Finance, has relaunched its mobile lending app, MoneyPal, with a redesigned user interface, simplified application and access to more nano loans.

In a statement at its Lagos office, it said the  app was modified to provide fast and convenient loans to millions of Nigerians as it continues to redesign the app into a lifestyle product.

According to Managing Director of Zedvance Finance Limited, Mr. Ever Obi, the upgraded app comes with fascinating new features that would provide a top-notch and seamless digital lending for itscustomers.

“Zedvance Finance has been at the forefront of providing best-in-class financial solutions to its customers; we are very excited to relaunch the MoneyPal app to also serve millions of both salary and non-salary earners in Nigeria.

“MoneyPal was redesigned in response to extensive consumers’ feedback and changing user trends, with a focus on simplicity, security, availability, and speed. We upgraded the mobile app to meet our consumer financial lifestyle as a customer-centric business. That’s why we are rolling out the new app with the #MadeForMore campaign,” Mr. Obi said.

He said the company intended to serve one million new users through the mobile app and other digital channels.

Head of Product Marketing and Brand Communications, Zedvance Finance, Mr. Lukmon Oloyede, said the highlights of the new app included access to more nano loans: New and existing customers can get up to N100,000 nano loans within minutes on the app.

This is accessible to non-salary earners and salary earners within 18-55 with an active bank account, BVN, email and phone number.

Enhanced security: Biometric sign-in option now available on the updated app to keep the user account more secure.

Better User Experience: It offers a more user-friendly interface, ensuring that you don’t lose your place within the app.

In-app notifications: This feature would enable us to stay more connected with you and give prompt product updates.

Loan performance dashboard: User can now check their credit history and learn more about their loans.

More flexibility: New and existing customers can now repay your nano loans within 15 – 90 days, depending on the loan amount selected.

Data Protection: In full compliance with the CBN’s data privacy regulation.

Now available on App Store (iOS): iPhone users can now download and apply for instant cash on MoneyPal App. It’s available for free and can be easily downloaded on App Store.

More user rewards: All users can now enjoy more benefits for referring their friends. The referral program is a point-based system. This means that the more people you refer, the more points you receive. You can exchange your points for an item in our gift shop once you have reached the maximum redeemable number of points.

Unique virtual account: You can instantly pay off your loans through a unique, personalized account number created for each user on the MoneyPal app. The virtual account number is on the homepage dashboard.

Zedvance provides access to personal and business loans between three and five hours through self-service digital channels.

“We will continue to develop our digital proposition even further over the next months – exceeding the expectations of our customers whilst improving our customer experience,” Oloyede added.

He also hinted that the company will be announcing an Unstructured Supplementary Service Data (USSD) code lending option and asset financing (Buy Now, Pay Later) service this year.

The Nigerian Communications Commission (NCC) has awarded N233 million in grants  for research and endowed professorial chairs in some universities.

Of the amount, N172.5 million was awarded to support 13 proposals found to have met the stipulated criteria in the advertised 2021 Request for Proposal (RfP) for Telecommunications-Based Research Innovations from Nigerian Tertiary Institutions (research grant) Programme.

Three universities received N20 million each for endowments of professorial chair.

Speaking at the awards, which took place at the Commission’s Head Office in Maitama, Abuja recently, the Executive Vice Chairman of the Commission, Prof. Umar Garba Danbatta, said the event demonstrated the Commission’s  resolve in advancing digital technologies.

Danbatta said the tertiary institutions submitted proposals on some themes, which are expected to result in the development of commercially-viable prototypes.

He explained that the  Commission received 55 proposals that focused on five emerging technology areas, namely: Fifth Generation (5G) deployment; Innovative Clean Energy; Advanced Method of Quality of Service (QoS)/Quality of Experience Management and Test Mechanism; Internet of Things (IoT); Low Power Wide Area Network (LPWAN) Technology; and Monitoring and Localising of Drones.

He said after evaluations, 13 proposals scaled the hurdle.

‘’This is a testimony to the objectivity and painstaking approach to the evaluation aimed at ensuring that the best quality is achieved and only researches that could produce prototypes with the potential of providing solutions to both local and global challenges were selected,” Danbatta said.

The University of Port Harcourt; Usman Danfodio University, Sokoto; and Federal University of Technology, Minna, received N20 million each for their Professorial Chair endowments.

“The Commission has endowed professorial chairs in tertiary institutions across the country, as a mechanism in entrenching innovations in our tertiary institutions, as well as having graduates that are “industry-ready”. The endowment of professorial chairs in universities is one of Commission’s initiatives in supporting the academia to focus on research in Information and Communication Technology (ICT) in order to enhance the advancements of emerging technologies,” Danbatta stated, to underscore the purpose for instituting professorial chairs in tertiary institutions.

The fresh endowment in the three universities brings to seven, the number of universities that the Commission has endowed professorial chairs. Earlier, the NCC had instituted professorial chairs in Federal University of Technology, Owerri, Imo State; Bayero University, Kano, Kano State; Abubakar Tafawa Balewa University, Bauchi State; and University of Ibadan, Oyo State.

Meanwhile, the EVC stated that while the implementation of the endowment is through a Memorandum of Understanding (MoU) signed between the Commission and each benefitting university just as the Commission recently included the sighing of MoU as part of the implementation of the Telecommunications-Based Research Innovations.

The EVC stated that with the latest awards and endowments, the Commission has committed more than N660 million to Nigerian tertiary institutions for ICT-focused research innovations. This is in demonstration of commitment to driving the attainment of the goals of the Federal Government’s agenda on digital economy, as captured in the National Digital Economy Policy and Strategy (NDEPS), 2020-2030.

Earlier in his remarks, NCC’s Head of Research and Development (HRD), Kelechi Nwankwo, thanked the EVC for his vision to continually deepen collaboration between the Commission and the Academia. Nwankwo expressed optimism that the Management of the Commission would continue to allocate the requisite resources to research, development and innovations that are necessary for the industry to continue to contribute to the socio-economic development of the country.

The HRD said the initiatives which are policy-driven were instituted as a proof of Commission’s  appreciation of the importance of working with stakeholders to engender innovations and build indigenous technological capabilities that would strengthen the ICT ecosystem, not only in the provision of services but also in the development of the communications manufacturing and supply sector within the Nigerian economy. He said collaborations such the one with the academia are in line with the NCC’s Strategic Management Plan (SMP), 2020-2024, because strategic partnering has been identified as a critical pillar for the attainment of NCC’s corporate objectives.

Nwankwo encouraged the beneficiaries of the research grants and the universities that benefited from the endowment of professorial chairs, to put the financial resources into proper use that will produce research outputs that address societal problems and contribute to further growth of the telecoms sector.

Expressing appreciation on behalf of the beneficiaries, the Vice Chancellor, Usman Danfodio University, Prof. Lawal Bilbis, assured the Commission that the funds will be put to judicious use.

E-commerce platform, Jumia, is treating esteemed customers to a mouthwatering shopping experience with up to 60% off on a number of products during the special Easter Shopping Sale Campaign.

The sales window, which runs from April 11th to 17th, 2022 will offer consumers the opportunity to shop for their Easter needs at massive discounts across different product categories such as groceries, fashion, electronics, and more.

“This is a special offer to our consumers in celebration of the Easter holidays. As part of our culture at Jumia, we are offering our consumers the best deals on products for their essential needs, family entertainment, fashion and beauty, gadgets and other household items they wish to get during this period. It will be a good shopping experience, as consumers can enjoy between 20-60% discount on products across these categories,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

READ ALSO: Jumia partners Lagos Food Bank on Valentine’s Day

Consumers in Lagos and Abuja can enjoy free delivery on thousands of products during this period. To take advantage of this offer, consumers need to look out for the free delivery tag when shopping for their Easter essentials.

For aeons, Africa’s informal retail market was like the proverbial diamond in the mud. A case study is a Nigerian market that is the largest on the continent. The market is valued at over $100 billion, yet shop owners experience difficulties in restocking goods due to a complicated distribution and supply chain. Despite the numerous challenges, their prospect is attracting interest from both local and foreign investors who are deploying technology to improve the sector.

Top on the list in recent years are B2B e-commerce brands like Alerzo, TradeDepot, Wabi2b who play majorly in the Nigerian market, connecting manufacturers, distributors and retailers through their digital marketplaces. In recent years, informal retailers who embrace these platforms are having better business experiences. With a tech-driven supply chain and logistics, sellers in several rural communities get their orders processed and delivered at their shops.

Retailers are not sole beneficiaries of B2B e-commerce companies. For instance, Alerzo provides warehousing and fulfillment solutions to suppliers. The company currently owns over 200 vehicles and 20 warehouses to serve thousands of retailers on its platform. Also, the ability of these e-commerce platforms to penetrate rural communities make them good data banks, as they are able to gather information from their first-hand interaction with retailers. Such data can be useful to public agencies for developmental planning purposes, as well as manufacturers and distributors.

READ ALSO: B2B e-commerce platforms and consumer goods distribution value chain

“The informal retail sector is huge and robust. Hence, our activities and services have far-reaching impact and benefits for all stakeholders in the value chain,” said Alerzo Limited CEO, Adewale Opaleye. He explained that a platform like Alerzo is a market aggregator and is not out to displace existing wholesalers/distributors in the chain. He said the company sees distributors as partners.

Another benefit for the market stakeholders is the increasing investment in logistics by e-commerce firms. The last couple of years has seen a rise in last-mile delivery and distribution companies with a large increase in on-demand services across many sectors. While most players in Nigeria tend to focus on Lagos and Nigeria’s capital city Abuja, B2B brands like Alerzo cover other cities and rural communities where informal retailers dominate.

The logistics investment of B2B e-commerce companies are also helpful to manufacturers and distributors, as these platforms transport the ordered goods from manufacturers’ and distributors’ warehouses to the target retailers, scattered all over the country. In some cases, the service comes at no cost to these manufacturers and distributors.

While retailers are seen as lead beneficiaries of the emerging B2B e-commerce trend, other stakeholders in the market stand to gain immensely from these tech investments. If the recent wave of digital activities in the informal retail sector is anything to go by, then the next five years promise a boom that would see the informal retail value chain make notable contributions in the Nigerian digital economy space.

Globally, emerging technologies are gaining traction. Artificial Intelligence (AI), Internet of Things (IoT), robotics and more are exponentially growing and finding new apps in an ever-increasing number of sectors, including the way people receive, exchange and process information for security. Both physical and virtual policing would get easier if the country leverages 5G technology. LUCAS AJANAKU reports. 

Threat to homeland security, both physical and virtual, has become  serious that governments are not taking the issue with levity.

Cattle rustling, banditry, kidnap-for-ransom, and terrorism, including the menace of unknown gunmen cutting people down without let or hindrance have become a plague on the country. Experts have said kinetic and non-kinetic approaches should be deployed to tackle the security challenges besetting the country. They all agree on the importance of emerging technology in the entire mix.

Minister of Communications and Digital Economy, Prof Isa Pantami, said the use of emerging technologies in combating insecurity remains a veritable tool which Nigeria will continue to explore, especially now that digital technology is the next available option to help reduce the scourge of insecurity in the country.

He said the rapid advancement of technology has brought about the term Emerging Technologies that are new and have not been fully explored or are still under development, and new cases are discovered every day.

The deployment of the fifth generation (5G) network in the country will promote remote surveillance where so many facilities such as robots attached to internet of things (IoT) and many more will be deployed with real time communication to places, including remote areas where operatives might not be physically present.

He said it would help major companies, especially those that require very strong broadband to undertake remote operation, including oil and gas from discovery to production to refining, that is upstream, midstream and downstream. When it comes to individuals, it will help in telemedicine, tele-surgery where surgeries would be done remotely because of the availability of infrastructure.

Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo said every layer of improvement in telecommunication has brought a difference in user experience and significant improvement in the quality of services delivered to the end user.

“The major advantage of 5G is that you have a high volume of data transfer between person to person and person to machine and the world today is talking about virtual reality, all these applications will ride on 5G. Today, we are talking about the digital economy, mobile banking; these services will run better on 5G with more affordability and more latency. Electronic gaming, electronic sports and e-commerce will be better with 5G. Big data, high data transfer, high speed of communication, high quality communication will be guaranteed,” Adebayo said.

According to the minister, the technological revolution is transforming lives at breakneck speed, altering the way people work, learn and live together.

He stated that Emerging Technologies such as Artificial Intelligence, Blockchain, Cloud Computing, Quantum Computing, Augmented Reality, Internet of Things and Robotics are exponentially growing and finding new applications in an ever-increasing number of sectors, including the way people receive, exchange and process information for security.

The minister further said unstoppable as insecurity appears, the country has continuously explored various approaches to mitigate security challenges.

“You would all agree that the ongoing Fourth Industrial Revolution (4IR), characterised by digitalisation and automation, is cutting across all sectors of industry and humanities. The copious role of digital technology in tackling insecurity can never be underestimated; making it a veritable tool for defeating all security threats in the country.

“It is pertinent to understand that advances in technology are reshaping global security capabilities, from enhancing the way borders are monitored to helping mitigate insecurity, the impact of natural disasters to intelligent detection, the identification of criminal activities to automatic detection of crime associated menace in the society,” he said during a presentation at the National Students Security Summit organised by National Association of Nigerian Students (NANS) at the International Conference Centre, Abuja.

Pantami further stated that these new challenges and opportunities  were being utilised in facilitating digital solutions and building capacities to address national security challenges in Nigeria. The Federal Government is not unmindful of the role of emerging technologies in a sustainable digital economy and national security issues.

He said that the National Information Technology Development Agency (NITDA), National Centre for Artificial Intelligence and Robotics has been established to foster the development of emerging technologies in preparing Nigeria for the Fourth Industrial Revolution via research and development of technologies like drones, robotics and Artificial Intelligence.

Pantami said to curb cybercrime activities, NITDA rejigged its Computer Emergency Readiness Response Team (CERRT) in response to the increase rate of cybercrime and in fulfilment of the requirement of the National Cybersecurity Strategy.

He added that CERRT functions in coordinating and facilitating information sharing, providing mitigation strategies and recommendations for the incident response and recovery, researching and analysing trends and patterns of incident activity for government Ministry, Department and Agencies (MDA) with extension to the private sector.

“We are taking steps to establish National Public Key Infrastructure to ensure the protection of Nigerian systems in cyberspace. We are establishing National Emergency lines in almost every part of the country to ensure citizens’ communication access. We are creating cybersecurity awareness across geopolitical zones to educate Nigerians on the potential of cyber threats. Every Nigerian must be aware of his responsibilities as far as security is concerned, and each person must be safe,” he added.

In an attempt to create a safe digital environment, the Minister said that President Muhammadu Buhari has approved the designation and protection of relevant telecommunications infrastructure across the country as Critical National Infrastructure (CNI) towards supporting implementation.

The minister added that governments at all levels, private and other critical stakeholders in the technology ecosystem are expected to respond more rapidly and effectively to the unique opportunities emerging technologies could bring to Nigeria’s security administration.

“As a government, we would channel our energy towards creating an enabling environment for innovation in emerging technologies that could be harnessed and utilised effectively to the country’s advantage. We would develop integrated frameworks and approaches for adopting and deploying Information and Communications Technology (ICT) in national security architectures. We will continue to create suitable platforms to foster trustworthy collaborations between the country’s public and private technology community and civil society organisations,” he said.

Technology for Social Change and Development Initiative (Tech4dev) has  won the Non-Governmental Organisation (NGO) of the Year by Herconomy.

It was presented at Herconomys award and gala night at the Civic Centre, Victoria Island, Lagos in recognition of the NGO’s works with the Sustainable Development Goals (SDGs) .

Tech4Dev, a non-profit social enterprise, creates access to decent work and entrepreneurship opportunities and platforms for Africans through digital skills empowerment and advocacy. It is committed to using technology to advance sustainable human capital development in Africa.

The event was organised to honour and celebrate women of excellence  across various industries in line with the  global International Women’s Month theme “breaking the bias”.

Co-founder and Executive Director, Tech4Dev, Oladiwura Oladepo, said the the recognition meant a lot to the organisation. Oladepo said Tech4Dev’s ultimate goal is ensuring improved livelihoods for every young African through digital skills and jobs

“It gives me great joy that our efforts are being recognised and appreciated by Herconomy. I dedicate this award to the best team ever, our partners, advisors, volunteers, friends and every woman that dares to break the bias and push beyond stereotypes,’’ she said.

Founder/Director of Development, Tech4Dev, Joel Ogunsola, said the organisation will ensure that Africans get an opportunity of a better life through technology.

“Tech4Dev will continue to work to ensure that access to economic opportunities for young Africans through technology is democratised.

“The recognition validates the impact of the work we do and couldn’t have come at a better time, as we begin our expansion into 10 more African countries,’’ he said.

Tech start-ups will jostle for the N12million prize by ARM for the pitch of the Deji Alli ARM Young Talent Award (DAAYTA) slated for April 8, 2022.

According to the organisers of the event, this year’s will be the fourth.

The winner will get N12 million to develop their business plan; complete an entrepreneurial education at the Pan Atlantic University’s Enterprise Development Centre (EDC), Lagos; and receive a five-month acceleration support for development of their venture through a reputable entrepreneurial hub in Lagos.

ARM Group Chief Executive Officer, Jumoke Ogundare, appealed to well-wishers to  support the companies by giving them access to new markets.

The virtual event is scheduled to hold by 6:00 PM via Zoom. The programme, a youth awards initiative, was founded in 2015 by ARM in honour of its founding CEO, Deji Alli. Its has produced  winners Wesabi (2019) (Murtala Sanni); www.wesabi.com; The Paper Packaging Company (2020) (Eferobosa Oguegbu); www.tppcng.com; and Scrapays Technologies Limited (2021) (Tope Sulaimon); www.scrapays.com.

The objective of the award is to support  young entrepreneurs with innovative ideas that have a positive impact on people’s lives and the communities that surround them.

DAAYTA 2022 focuses on identifying start-ups with a minimum viable product (MVP) and at least one customer.

Having received over 1,027 applications from start-up entrepreneurs nationwide, the organisers have selected the top seven outstanding companies. They include D-Olivette Enterprise, Arone, myStash Technologies Limited, Vinsighte Limited, Celloop Limited, Gamp Technology Limited and Arleegreens Renewable Enterprise.

After some pre-pitch to prepare the finalists, the seven will present their pitches virtually to a panel. They include Ndidi Nnoli-Edozien, Victor Asemota, Sadiq Mohammed, Folasade Olusanya, Kola Aina, Ina Alogwu, and Tomi Davies.

Since its introduction into the Nigerian business scene, e-commerce has become a major driver of the country’s digital economy. It has not only brought about innovative business ideas but is redefining existing businesses for efficiency and growth. Thriving on increasing internet penetration and smartphone revolution, online sales and shopping is fast becoming a lifestyle for the average Nigerian.

The impact on business activities and contributions to economic development is even more intriguing. Here are a few examples of how e-commerce is transforming Nigeria’s market:

Boosting logistics business: Many would agree that e-commerce ushered in a new normal for Nigerian businesses by making delivery activities commonplace. The sudden demand for motorcycles, trucks, and vans can be seen on most Nigerian roads in both rural and urban areas, as businesses of all sizes make deliveries on a daily basis. This has a cascading effect on job creation among Nigerian youth that cannot be downplayed.

Cost-effectiveness: Retailers, who make up the SME sector, are arguably the biggest beneficiaries of e-commerce technology. For existing businesses, e-commerce has become a springboard for growth. Jumia, for example, provides a ready-made marketplace for reaching a larger audience. Furthermore, the availability of e-commerce platforms is helping in the actualisation of business ideas. Prospective entrepreneurs no longer need huge startup capital to get their business up and running.

Access to a wider audience: Geographic barriers are no longer an issue thanks to technological advancements of e-commerce platforms. From the comfort of her home, a Jumia seller can put her items in front of millions of people. Another advantage is that it contributes to long-term profit growth. “Selling online helps me reach a wider number of people. From my shop I can sell to people in Kaduna, Abuja, Port Harcourt and that has increased my sales,” said Bukola Ogundijo, a seller on the Jumia platform.

Improves productivity: For business owners, e-commerce allows for excellent time management. E-commerce enables effective time management for business owners. Selling online frees up more time for sellers to engage in other productive ventures. “Selling online has been helpful in managing the business side. I don’t need to worry about warehousing and delivery. I can be in the house, looking at my phone and attending to other things while taking care of the family,” Bukola added.

Price flexibility: Consumers also benefit by saving more at the best prices. Thanks to e-commerce, consumers have a lot of options. As brands jostle for market share, pricing is a major incentive to get consumers’ attention. Today, an average Nigerian in need of a product compares costs on many online marketplaces and chooses the platform with the most reasonable price range.

Eliminating gender barriers: With e-commerce, the gender barriers associated with business transactions are eliminated. For example, people might be hesitant to buy electronic products from a woman selling such in a physical store. However, with e-commerce, the buyer is unaware of the seller’s gender, and what matters is product quality and service delivery. In Nigeria, 51% of Jumia sellers are women as seen in the report by the International Finance Corporation (IFC).

Funding and capacity building: One major impact of e-commerce platforms not often empathized is their contribution to human capital development. “Jumia has taught me how to understand consumer behaviour in e-commerce; how to process orders and how to create products on the e-commerce platform,” said Jumoke Akinsanya, Founder of online store, Deeski.com. “Jumia’s lending program has helped us grow our business to a larger size than when we first started working with them. We began with two staff and a smaller warehouse but we now have a larger warehouse and fourteen staff,” she added.