Category: e-Business

Digitization of informal retail markets is an emerging global business model and Nigeria’s economy is falling in line in this regard. Recently impacting the Nigerian business sector are business-to-business e-commerce brands reinventing the market with technology solutions.

Estimated at over $100 billion, the Nigerian informal retail sector has a chain of challenges. Unauthorised marketers peddling adulterated products; mass literacy among retailers; clustered market; supply versus demand issues; retailers’ lack of or limited inventory knowledge, coupled with lack of business and management skills, are some of the many challenges bedevilling the market.

Despite the challenges, these e-commerce platforms see opportunities. They aim to solve these challenges by creating digital products that make life easier for informal retailers.

“It is one market long overdue for tech-based solutions,” said Alerzo Limited CEO, Adewale Opaleye. “The market holds enormous potential, however, there are several problems to solve to fully open up the sector.

READ ALSO: Bringing informal retailers on Nigeria’s digital economy train

“Looking at the market, it is cash-based and is largely unregulated which leads to instability in market prices. The role of several intermediaries also creates complexity. Likewise, business growth is affected by retailers’ lack of access to finance. Inadequate logistics facilities also take its toll on the supply chain. So these are issues we are addressing with technology, thus exposing retailers to modern business practices,” he explained.

Fintech products by e-commerce platforms promise long-term positives on the informal market. For instance, retailers using Alerzopay build a financial history that could help them access funds for business expansion. Added to this is the overall financial inclusion benefits for the market, as several rural retailers previously excluded in conventional banking can be serviced digitally. Notable is the fact that this will go a long way in expanding the financial ecosystem.

Another added benefit of e-commerce to this sector is that it will help address the lack of business and management skills prevalent among informal retailers. B2B shopping platforms are run by professionals with apt business knowledge. These e-commerce platforms provide sellers with training and advisory which can help informal retailers grow their businesses.

The journey to a robust digital retail market is still a long one for Nigeria, but the recent influx of technology investment in Nigeria’s informal retail market is a sign of a market heading in the right direction.

As the increasing demand for groceries and essential goods continues to push manufacturers to double up capacity, B2B e-Commerce platforms are increasingly becoming a strategic force to be reckoned with in the manufacturing, distribution and retail value chain in Nigeria.

This is more so because the global economy is still smarting from the impact of the COVID-19 pandemic, which halted productive activities and left huge supply shortfalls. Also, there is pressure on manufacturers and top-tier distributors to get goods and services across faster to the consumers. In a country as vast as Nigeria with a large spread of consumers, B2B platforms are strategically positioned to bridge the gaps in the distribution value chain by COVID-19.

B2B platforms offer manufacturers and producers a more agile fleet that takes products to the consumers faster and in a more cost-efficient and convenient way, a value that distinguishes them from B2C platforms.

For instance, Alerzo, a major market player in the B2B market, acts as enabler of manufacturers, distributors and retailers by transporting goods ordered from manufacturers or distributors’ warehouses to the target retailers at no cost to either the manufacturers/distributors or retailers. A typical example is Alerzo’s free delivery service to informal traders. This way, B2B e-Commerce platforms empower businesses to reduce their cost and increase profitability, thereby making businesses more sustainable.

Nigeria’s informal retail market is one big chunk of the distribution value chain. It is estimated to be worth $100 billion, but the segment is faced with some peculiar challenges –limited inventory, lack of access to finance for expansion, unregulated and clustered market, distance to market or supply source and high transportation cost, all of which increase cost of operations.

In response to the challenges, B2B e-Commerce platforms including Alerzo (AlerzoShop), TradeDepot, Omnibiz and Njalo, to mention a few, are empowering informal retailers in the sub-urban and rural areas with the faster distribution of consumer goods using first-party relationship platforms.

The platforms allow manufacturers and top-tier primary suppliers to clear their inventory faster, while the B2B operators deal with the last-mile supply and delivery to the retailers. Most of the players in the B2B e-Commerce segment through their digital platforms connect retailers to local and multinational manufacturers and distributors of consumer brands. Through its ecosystem of digital products, Alerzo, for example, has been empowering informal retailers to access a wide assortment of consumer products – with ease and speed – from FMCG companies such as Unilever, Nestlé, Procter & Gamble, PZ Cussons and Dangote at zero delivery cost to the retailers.

Another way B2B platforms benefit manufacturers and tier-one distributors is data gathering and market intelligence on vital information such as consumer behaviour and preferences. They analyse data and share market insights with the manufacturers to further help them in research and product development, while distributors also use such information to scale up operational efficiency.

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

Their ability to improve sales and assist manufacturers, distributors and retailers to plan and ensure predictable outcomes, also underscores the strategic importance of B2B operators.

While predicting six trends to watch out for in the B2B e-Commerce market segment in Nigeria, in 2022, tech enthusiasts tipped increasing adoption of B2B e-Commerce as one of the evolving business models for the year and opined that more retailers would be brought on board the e-Commerce ecosystem through B2B platforms.

It was also predicted that the segment would open up to retailers in the non-consumables category to accommodate more high-earned product retailers, while the B2B e-Commerce segment would go bullish with the launch of fintech products.

Equally, B2B e-Commerce is expected to grow bigger in Nigeria as B2B shopping brands would expand their reach and services to more cities across Nigeria. The implication is that more opportunities are created for manufacturers to increase their market spread, while at the same time top tier distributors are also increasing their distribution network. Further, more retailers are empowered to access products faster, and ultimately, the consumers are able to make purchases without having to travel miles to get whatever they want.

Indeed, the B2B e-Commerce platforms are a good complement to the manufacturers, distributors, retailers and the entire value chain including the consumers, who use the products.

International rating agency eMarketer estimated that the global e-commerce sector would be worth USD27 trillion in 2020. This may not be anything near what the world’s e-commerce market expected when Phil Brandenberger of Philadelphia, the man famed to be the initiator of the e-commerce revolution, made his first purchase on August 11, 1994.

Prior to 2012 when this revolution extended to the country, most Nigerians used to hear of people who shop at the comfort of their homes and have their orders delivered to them. This used to be one of those foreign stories, told by the privileged few who have lived overseas. Today, e-commerce has grown to become a big part of Nigerians with many platforms offering general and specialised products and services. The burgeoning market could only be as a result of the many benefits that accrue to all the touchpoints in the value chain – e-commerce platforms, manufacturers, wholesalers, logistics services providers, customers and many others.

The success of the e-commerce platforms in the country, which play mostly in the business-to-customers (B2C) subsector spurred many other players who see a big opportunity in extending such services to the business-to-business (B2B) subsector. In the past few years, many platforms like Alerzo, Omnibiz Africa, Wabi Nigeria, Chooya etc have sprung up and are helping to facilitate the estimated USD100+ billion informal retail market in the country.

Just like the B2C e-commerce platforms are positively touching the lives of their stakeholders, the B2B platforms, with their niche offerings, are positively facilitating the businesses of their stakeholders, especially the manufacturers, the wholesalers and the retailers, who have latched onto their platforms.

Among other things, the manufacturers and distributors benefit from the logistics services offered by platforms like Alerzo as these platforms transport the ordered goods from manufacturers’ and distributors’ warehouses to the target retailers, scattered all over the country at no cost to these manufacturers and distributors.

Perhaps, one of the most strategic offerings of the B2B e-commerce platforms for manufacturers and distributors in the country is market intelligence. They collect data of, and develop insights around, consumer behaviours and preferences. Manufacturers and distributors can partner with these B2B companies to share these insights and use them to guide their production and supply respectively, ultimately giving them a better understanding of their end consumer.

For the retailers, the B2B e-commerce platforms have not only boosted their profitability but have also reduced the burden that comes with the day-to-day running of their businesses as well as making their businesses more sustainable. These platforms buy from the manufacturers and/or the big-time distributors at good prices and through their scale sell to the informal retailers at prices below what are obtainable in the open markets where third-party costs are factored into the prices.

Another major gain of the informal retailers from the emergence of the B2B e-commerce platforms is that they can sit in the comfort of their shops or homes and, with a click of a button on any of the multiple channels open to them, restock their shops. Alerzo, for instance, enables this through its retail app, Alerzoshop.

Some of these B2B platforms even go the extra mile of delivering these retailers’ orders to their shops at no extra cost to them. For example, Alerzo has been delivering the orders of the over 80,000 informal retailers across the country who have signed up to its platform, and in the process, is elevating their health status, improving their quality of family life and saving them huge resources that would have been expended in the running of their businesses.

The icing on the cake for these retailers is that many of these B2B platforms offer book-keeping applications for retailers to track their sales, cost, price, profit and manage their customers, as well as payment platforms (which manufacturers and distributors can also take advantage of) like AlerzoPay and Veedez by Alerzo.

With an increasing number of retailers adopting smarter ways of doing business, it is expected that more manufacturers will take advantage of this trend, especially in a growing competitive market.

 .Ojedokun is a Communications expert based in Lagos

Lawyers have faulted the proposed National Information Technology Development Agency (Repeal and Re-Enactment) Bill 2021, which not only seeks to convert the agency into another regulator that will be wrestling powers from its regulators but prescribes asphyxiating punitive regime for business owners. Lucas Ajanaku reports.

After setting the stage for discussion the webinar put together by the Information and Communication Technology (ICT) Committee of the Nigeria Bar Association Section on Business Law (NBA-SBL), in collaboration with the National Information Technology Development Agency (NITDA) and Farisad Investment Limited (FIL) by the moderator, the Chief Executive Officer of FIL, Sanusi Musa, the NBA President, Olumide Apata, after a brief opening remarks, raised three fundamental concerns on the proposed Bill, which, he said, should be looked into by stakeholders.

Represented by ICT Committee, NBA-SBL, chairman, Rotimi Ogunyemi, the NBA chief wanted to know how the Bill will align with the Startup Bill before the National Assembly; how the NITDA Bill intends to navigate its way within the broadband context of other regulatory functions of other regulatory agencies to eschew functions overlap; and what the impact of the harsh penalties for violation of certain sections of the Bill will be on the ICT business environment.

George Ayotunde flayed NITDA for not consulting with stakeholders such as the NBA and tech community before drafting the bill. He wondered what the consequences would be if a law is passed that unintentionally kills a company like Flutterwave and slammed the agency for arrogating to itself arbitrary powers to make laws without recourse to the people the law will affect. He said the Bill was mute on the definition of national interest.

Another lawyer, Olatunji Abibat said section 10 of the proposed law conflicts with laws granting powers to agencies to register.

She cited the Computer Professionals (Registration Council of Nigeria) and Standards Organisation of Nigeria (SON) as examples of agencies which the bill is conflicting with.

Director, Legal Service Department at NITDA, Emmanuel Edet, had said the bill proposed a reduction in the number of the membership of the Governing Board of the agency because of its administrative cost.

He had also said it was better to overregulate than under-regulate. He said agencies are empowered at issue authorisation, adding that NITDA just want to fill a in the gap, which he strangely said he doesn’t.

But the Lead Partner, Infusion Lawyers, Senator Iyere Ihenyen, differs. He said attention had not been paid to the Governing Board issue. He said attempting to arrogate powers to NITDA to do what the Central Bank of Nigeria (CBN), SON are doing was unacceptable.

Rather he proposed an expansion of the board to include the CEO of NCC, CBN Governor. Ihenyen said lack of coordination, tension and fight over power encroachment are some of the things that he has noticed through his interaction with the ecosystem.

Israel Usman spoke on the issue of overlap with other agencies of the government. According to him, already there are so many agencies in the industry, warning that there will be more trouble if the bill is allowed to go in its present position.

He said NITDA is to develop and not to regulate, wondering how the agency will achieve the two. According to him, if the agency wants to transmute to a regulator, it should change its name.

Barbra Omo Odudu raised concern over permits and authorization in section 15. She said levy is a loss and slammed the multiplicity of taxes in the industry. She said the issue of criminal penalties should be reworked or done away with.

But Edet believes intrusion into other agencies power is the best option. He said regulatory overlap is a major issue that leads to collaboration. He said it is difficult to define concepts without overlap. He cited Iroko Tv, Netflix and others, arguing that the National Broadcasting Commission (NBC) would have to redefine its concept of broadcasting. He insisted that the era of agencies regulatory independence is over, arguing that they must stray into each other’s territory.

One of the participants who identified himself simply as Barde said the bill should be reworked completely because of its tendency for intrusion with other regulatory agencies.

Other speakers aligned with his position because granting regulatory powers to NITDA is a recipe for stunting the growth of the industry.

The NITDA Bill is negating institutions such as CBN, NCC, CPN, Federal Competion and Consumer Protection Commission (FCCPC), National Identity Management Commission (NIMC), the Nigerian Financial Intelligence Unity (NFIU), Office of the National Security Adviser (ONSA), among others.

A tech media platform, Document Women, said it is seeking to expand its operation into other parts of Africa having done well in the country over the last one year.

Its Chief Executive Officer (CEO) Kiki Mordi, who reflected on the company’s first year anniversary and the seed funding raised, said: “We want to celebrate this milestone to mark the passage of time and recognise how our purpose has shaped our brand. We look forward to the future and what it holds. I say this as a company’s CEO dedicated to documenting women; I long for a world where we no longer treat women’s stories as a niche, where documenting women becomes an integral part of mainstream storytelling.”

She said Document Women has surpassed 50 per cent of its investment goals and that the capital raised will help it expand across Africa.

Document Women is a platform that strives to immortalise women’s impact on society by creating engaging feminist content representing women’s struggles, experiences and accomplishments.

It celebrated its one anniversary with a photo exhibition and a documentary screening on International Women’s Day at the British Deputy High Commissioner’s Residence in Lagos.

Since inception, Document Women has been known to amplify women’s voices and inspire wide-reaching conversations on women’s issues using a gendered lens. In addition, they are growing a community of curious minds by fostering open discussions about politics, business and economy, culture, history, health (and more) that affect women.

Document Women began its operations in response to the exclusionary nature of mainstream media and since then, is gradually and uniquely transforming the way women are represented in media and the society at large.

In its first year, “Document Women” published over 300 articles, produced a podcast series and a short film directed by Emmy nominee founder Kiki Mordi.

The media outlet received a Freedom Awards for Allyship, in recognition of its work in documenting intersectional and inclusive women rights issues, from The Initiative for Equal Rights (TIERs Nigeria).

On March 8, 2022, Document Women celebrated its first-year anniversary with a photo exhibition and documentary series themed “Women Giants”, with photography led by Kudirat Ikharo and Sarah Etta’s debut as a creative director.

This photo campaign and documentary featured girls from the Dream Catchers Academy for Girls, a free boarding educational and performing arts academy for orphaned or underserved girls and spotlighted thirty women giants, highlighting their contributions to sports, science, literature, arts and more.

Women featured in this shoot include; Funmilayo Ransome-Kuti, Ellen Johnson Sirleaf, Maria Ressa, Ladi Kwali, Maya Angelou and Chioma Ajunwa, to mention a few and a portion of the funds raised from auctioning the art works will be donated to the Dream Catchers Academy to ensure that at-risk girls continue to get empowered through education and dance.

At the reception held at the British Deputy High Commissioner’s Residence, Document Women also announced its rebrand by showcasing its new logo, typography, and brand colours on all digital and print assets.

TikTok said it has updated its Community Guidelines to further support the well-being of its community and the integrity of the platform. Transparency with the community is important to TikTok and these updates clarify or expand upon the types of behaviour and content TikTok will remove from the platform or make ineligible for recommendation in the For You feed. TikTok routinely strengthens its safeguards so that TikTok can continue to bring people together to create, connect, and enjoy community-powered entertainment long-term.

TikTok’s Public Policy and Government Relations Director, Fortune Mgwili-Sibanda, said the platform believes that people should be able to express themselves creatively and be entertained in a safe, secure, and welcoming environment.

The Community Guidelines support that by establishing a set of norms so that people understand what kinds of content to create on the platform and viewers know what to report. The policies are designed to foster an experience that prioritises safety, inclusion, and authenticity. They take into account emerging trends or threats observed across the internet and on the platform. TikTok also listens to feedback from its community as well as other experts in areas like digital safety and security, content moderation, health and well-being, and adolescent development.

Some of the main updates being announced today and implemented over the next few weeks include strengthening its dangerous acts and challenges policy.

TikTok continues to enact the stricter approach it previously announced to help prevent such content – including suicide hoaxes – from spreading on the platform.

This previously sat within TikTok’s suicide and self-harm policies, but will now be highlighted in a separate policy category with more detail so it’s even easier for the community to familiarise themselves with these guidelines.

Another is broadening the approach to eating disorders. Mgwili-Sibanda said while TikTok already removes content that promotes eating disorders, the platform will start to also remove the promotion of disordered eating. TikTok is making this change, in consultation with eating disorders experts, researchers, and physicians, as it understands that people can struggle with unhealthy eating patterns and behaviour without having an eating disorder diagnosis. The aim is to acknowledge more symptoms, such as over exercise or short-term fasting, that are frequently under-recognised signs of a potential problem. This is an incredibly nuanced area that’s difficult to consistently get right, and so TikTok is working to train its teams to remain alert to a broader scope of content.

Mgwili-Sibanda said adding clarity on the types of hateful ideologies prohibited on the platform has also been included. This includes dead naming, misgendering, or misogyny as well as content that supports or promotes conversion therapy programs. Though these ideologies have long been prohibited on TikTok, the platform has heard from creators and civil society organisations that it’s important to be explicit in our Community Guidelines.

TikTok also said it is expanding the policy to protect the security, integrity, availability, and reliability of our platform. This includes prohibiting unauthorised access to TikTok, as well as TikTok content, accounts, systems, or data, and prohibiting the use of TikTok to perpetrate criminal activity. In addition to educating the community on ways to spot, avoid, and report suspicious activity, TikTok is opening state-of-the-art cyber incident monitoring and investigative response centers in Washington DC, Dublin, and Singapore this year. TikTok’s Fusion Center operations enable follow-the-sun threat monitoring and intelligence gathering, as we continue working with industry-leading experts to test and enhance our defenses.

Additionally, the TikTok community can find more information about the content categories ineligible for recommendation into For You feeds. While the ability to discover new ideas, creators, and interests is part of what makes the platform unique, content in someone’s For You feed may come from a creator they haven’t chosen to follow or relate to an interest they haven’t previously engaged with. That’s why when TikTok comes across content that may not be appropriate for a general audience, which includes everyone from teens to great-great-grandparents, the platform does its best to remove it from its recommendation system.

Every member of TikTok’s community will be prompted to read the updated guidelines when they open the app in the coming weeks.

On accountability to the community, Mgwili-Sibanda, said the strength of a policy lies in its enforceability. TikTok’s Community Guidelines apply to everyone and all content on TikTok, and the platform strives to be consistent and equitable in its enforcement. TikTok uses a combination of technology and people to identify and remove violations of its Community Guidelines, and will continue training its automated systems and safety teams to uphold the policies.

“To hold itself accountable to its community, NGOs, and others, TikTok releases Community Guidelines Enforcement Reports quarterly. The most recent report, published today, shows that over 91 million violative videos were removed during Q3 2021, which is around one per cent of all videos uploaded. Of those videos, 95 per cent were removed before a user reported it, 88per cent before the video received any views, and 93per cent within 24 hours of being posted. TikTok continues to expand its system that detects and removes certain categories of violations at upload – including adult nudity and sexual activities, minor safety, and illegal activities and regulated goods. As a result, the volume of automated removals has increased, which improves the overall safety of the platform and enables the TikTok team to focus more time on reviewing contextual or nuanced content, such as hate speech, bullying and harassment, and misinformation.

“TikTok has made significant strides to improve its policies and enforcement, including its efficacy, speed, and consistency, though the platform recognises there’s no finish line when it comes to keeping people safe. TikTo is driven by its passion to help everyone have a good and enriching experience on the platform,” Mgwili-Sibanda explained in a statement.

 

 

 

The United States (US) government has restated its commitment to directly advance gender equality across sub-Saharan Africa, through activities that promote opportunities for women, access to health and education services, and efforts to prevent and respond to gender-based violence.

As a demonstration of its commitment, U.S. government exchange alumni are at the forefront of promoting science technology engineering and mathematics (STEM) education and implementing programs to encourage Nigerian women and girls to pursue studies and careers in tech fields.

Alumni of the 2021 U.S. government sponsored TechWomen program concluded a STEM mentoring program called, “EduChamps” for 30 adolescent girls from African Church Grammar School, Ibadan, Oyo State capital.

Supported by the U.S. government, the program provided mentorship and skills training for girls to explore careers and business opportunities in STEM.

Speaking at the closing ceremony of the program, U.S. Consulate Deputy Public Affairs Officer Jennifer Foltz said it was imperative for young girls to have access to mentors from a range of fields who can help them gain skills and boost their confidence to consider higher education and careers in STEM.

She noted that “EduChamps” is one of the U.S. government’s initiatives to engage underserved communities, ensure gender parity, and provide women and girls with opportunities to contribute to creating sustainable and inclusive economic prosperity.

“STEM education is the key foundation for any country’s economic success. We are excited to support this initiative that serves as an inspiration for young girls to consider STEM subjects in their future careers in order to solve global challenges,” Foltz said.

A TechWomen Fellow, Damilola Asaleye, said attracting more girls into tech will help close the gender gap in the STEM fields. “With EduChamps, we are taking action to improve inclusiveness and narrow the gender gap in the STEM field,” she added.

Through the “EduChamps” initiative, the TechWomen fellows provided career counseling to the high school girls focusing on opportunities in the technology sector such as upcycling, automotive engineering, renewable energy, sustainable agriculture and space science.

The students also received educational supplies such as school bags, school uniforms, textbooks, exercise books, writing materials and sanitary pads to encourage them to stay in school.

More broadly, the United States has invested millions of dollars to directly advance gender equality across sub-Saharan Africa, through activities that promote opportunities for women, access to health and education services, and efforts to prevent and respond to gender-based violence.

In 2011, the U.S. government introduced the TechWomen program to empower the next generation of women leaders in the technology field.  This exchange program brings together women in Northern California with their counterparts in the Middle East, Central Asia, North Africa, and sub-Saharan Africa, including Nigeria, for a professional mentorship at leading technology companies in the United States

 

 

 

Two decades after the liberalisation of the telecoms sector, subscribers still grapple with challenges of data depletion, cash deduction for services not rendered, poor service quality and others. LUCAS AJANAKU reports.

After the triumph of deposit money banks (DMBs) over small scale recharge cards (airtime) vendors that operate at the retail end of the business, making as little as N10 for selling N500 and N20 for N1000, loading of airtime moved to the virtual space with banks taking the driving seat.

Millions of the jobless youth that got themselves occupied selling air time in traffic along the highways were sent out of business, thus unwittingly growing the army of the unemployed.

Selling recharge cards is a very lucrative business as it is estimated that Nigerians spend over N300billion yearly on recharge cards to either make voice calls or data or both simultaneously.

Dr Doyin Okupe, a former aide to former Presidents Olusegun Obasanjo and Goodluck Jonathan, said the conquest of DMBs over retailers has contributed to high rate of unemployment in the country.

In a tweet, he had averred that recharge card business is worth about N10 billion per day and is capable of providing jobs for five million youths nationwide.

“The government must stop banks from selling of recharge cards. This business is worth about N10billion/day and can provide jobs for five million youths nationwide and reduce unemployment.

“Banks should not be in the retail business where they strangulate small individual traders. The government must protect MSMEs,” he said.

Because of the convenience that comes with buying recharge cards through the banks, many people, especially the elite embraced it. Many of them have got their fingers burnt in the process of buying airtime online.

James Kokumo (not real name) will not forget in a hurry how he was defrauded by either the bank or his service provider.

According to him, he had approached his bank, GTBank, to buy data valued at N10,000. As usual, the cash was deducted while he didn’t get value for it. “When I didn’t see the data, I placed a call to MTN, which confirmed that it didn’t send data to my account. When I reverted to GTBank, I was told the matter has been resolved. How has the matter been resolved? The same thing happened again two Sundays ago. So, N20,000 has been deducted from my account for nothing,” he said.

Another female subscriber, who gave his name simply as Olusanya, said his problem was depletion of airtime and billing for data not used.

According to him, at the twilight of last year, he noticed the depletion of about N8,000 airtime from his account. He promptly called the customer care unit. After a long wait, a human being picked the call and he stated his problem.

“I was told to buy data which I didn’t buy anyway. I was tutored like a baby on how to use my phone and hung up. I resolved never to subscribe to data via that number again,” he said.

Since he was using more than one number, Olusanya kept to his promise. He went to the setting of his phone, deactivated data services, converted his alternate number to WiFi and connected the other phone to connect with social platforms and read his emails.

“To my greatest surprise, this thieving service provider kept sending messages at intervals of deduction for pas as you go (PAYU) for data usage. I placed a call to the service provider threatening to report to the Nigerian Communications Commission (NCC),” he lamented.

These are some of the litany of the exploitation the subscribers have had to contend with, including drop calls, outright poor service quality, cross talking, and call diversion.

The NCC acknowledges that there are challenges in the system. To resolve consumer related issues, it had set up a Consumer Affairs Bureau (CAB) which attends to customer complaints.

The CAB however encourages customers to first lodge complaints with the service provider. After failing to get justice, such an aggrieved subscriber could then escalate it to a dedicated toll free line 622 for the NCC to intervene.

The issue is how many of the over 200 million customers in the country with high urban literacy level and low rural literacy level.

 

Nigeria’s fast growing youth population, expanding consumer power, and increasing smartphone penetration, provide a strong basis for online commerce and financial technology in Nigeria.  The current e-Commerce spending in Nigeria is estimated at $12 billion, and is projected to reach $75 billion in revenue per annum by 2025.

Reports by export.gov on the digital economy in Nigeria, showed the economy is gradually becoming cashless. The report said the adoption of electronic transactions are continuously increasing, with ATM transactions dominating the volume of electronic transactions and the Nigerian Inter-Bank Settlement System Instant Payment dominating in value.

As contained in the report, the cashless policy has resulted in increasing demand for ATM services deployed in major cities and commercial centres across Nigeria to facilitate electronic banking and financial services. Driving the e-commerce section are online shopping platforms connecting retailers and consumers for sales transactions on a daily basis. Millions of retailers in the informal market are also onboarding the e-commerce trains thanks to the likes of Alerzo and others.

This increasing demand for electronic transactions is also attracting facilitators and investors from Europe and Asia who are investing in the Nigerian digital economy projects. “Ecommerce in Nigeria is gaining momentum and there’s optimism of a vibrant digital economy for the country.   The necessary pillars needed for the culture to thrive are gradually falling into place. For instance, 50% of Nigeria’s population, that is 104.4 million, are connected to the internet. Between January 2020 and January 2021, over 19 million new users got connected to the internet. This represents a 22% growth YoY.

“Majority of Nigerians now access the internet with their mobile phones. With the increasing internet penetration, mobile phone users in the country and the National Economy Digital Policy and Strategy for Digital Nigeria by the Federal Government, we expect that more Nigerians will imbibe the ecommerce culture,” said industry expert and CEO of Alerzo Limited, Adewale Opaleye.

Successful adoption of electronic payments in Nigeria is also encouraging the entrance of payment service providers such as Visa and MasterCard, which see Nigeria as a promising market. Debit cards from many local banks such as Citibank, Zenith, UBA, and Fidelity, are now used by Nigerian travellers to make payments in advanced markets like the U.S and U.K. There are many online wallet services and start-ups in fintech coming up with groundbreaking ideas which are driving financial inclusion of the unbanked population.

The plan according to the government is to have a digital economy, with a chain of business activities capable of making significant contributions to Nigeria’s GDP. There’s also a digital literacy drive which involves capacity building, towards achieving this.  “Within a year, we’ve trained 60,000 Nigerians with different skills. Also we train those that will create the services because we need to have the demand. Also, 2,467 Nigerian youths recently benefited from our digital training which focuses on three areas; digital productivity tools, digital contents creation and digital  marketing which are key in driving e-commerce and digital inclusion,” said the Director General of the National Information Technology Development Agency (NITDA), Kashifu Adbullahi.

Commendably, the Nigerian government has shown commitment towards creating a vibrant digital economy for the country. In  2019, President Muhammadu Buhari expanded the mandate of the ministry of Communication to cover that of the digital economy. A lot of investment is also going into the establishment of digital identity for all Nigerians to encourage online transactions.

Nigeria’s digital space is fast attracting business activities, far beyond what obtained a decade ago. Statistics show that more customers are embracing the e-shopping experience, and market innovators are also bringing retailers in the informal market onto the digital space. These are indicators of a good Digital economy future for Nigeria.