Optimism Trails  N2.4 Billion Investment in Nigeria's e-commerce

Total investment in Nigeria’s online shopping market by both local and foreign investors has been put at over $15 million (about N2.4 billion) with analysts predicting that the figure will double in 2014 as more investors see opportunity in the new sector.
The analysts, who assessed the growing industry strongly, believe that more online businesses will open in Nigeria in the next few months signaling a belief in the Nigerian environment.
The CEO of StartUps Partners’ Africa, Jaime Moreno, a new investor in the e-commerce space, told journalists during an interactive session recently that the country holds huge potential for e-commerce development. His optimism is based on Nigeria’s large population. According to him the opportunities are enormous and “we think Nigerians are becoming very brand savvy as consumers’ response had been overwhelming”.
With its population of about 160 million people, Nigeria recorded an estimated 25 percent growth in online shopping in 2011 valued at N62.4 billion, which is an increase growth of additional N12.5 billion to the N49.9 billion recorded in 2010, a survey by Euromonitor International, a global market research organisation was reported to have said.
“In the next two years, there will be active e-commerce eco-system”, Abasiama Indaresit, senior consultant at Wildfusion, an internet marketing agency told BusinessDay. Abasiama, who is familiar with the industry, calculates that total investment in the sector is conservatively over $15 million.
“In the next two to three years, you will have the biggest e-commerce market in Nigeria and one of the top in the world. Almost every day, technology comes up with new ways of making money; imagine making money through watching of movies in internet and listening to music.  And before you know it, you will have an eco-system that is large as developed market. It is a billion dollar market in developed market”, he said.
Indaresit further said that the country has the largest number of internet users in Africa and the 10th largest in the world and does not have that level of e-commerce investment. So it is a huge investment and the foreigners in collaboration with Nigerian investors have seen the opportunity and are investing in it.
“I am optimistic that more investments are coming in that sector. What you have noticed is just a tip of the ice bag”.
According to Indaresit, the expected investment in e-commerce will be largely driven by foreigners because they are enlightened in that direction and they have seen more successful stories. 
Culled from Businessday Nigeria

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