Home Business Nigerians e-commerce spending stands at $13bn annually—FG

Nigerians e-commerce spending stands at $13bn annually—FG

by Business News Report

The Federal Government has said that the current e-commerce spending in Nigeria is estimated at $13billion per annum. Dr. Evelyn Ngige, Permanent Secretary in the Federal Ministry of Industry, Trade and Investment, who stated this in Abuja at the Second National E-commerce Roundtable Session in Nigeria, said the e-commerce is projected to rise to about $75billion in revenue per annum by 2025. Ngige, represented by the Director, Commodities and Export Department in the Ministry, Mr. Suleiman Audu, said e-commerce has grown from 14% in 2019 to 17% in 2020, adding that COVID-19 pandemic has turned global attention to the importance of e-commerce in the conduct of businesses.

She, therefore, said her ministry was passionate about the growing Investment opportunities in the e-commerce value chain, which are capable of contributing significantly to the country’s Gross Domestic Product(GDP). She said that e-commerce provides an alternative to sustain businesses and preserve millions of jobs in the face of COVID-19 pandemic. Speaking further on the benefits of e-commerce to the nation’s economy, Ngige said: “This encouraging trend has attracted the entrance of payment providers into e-commerce market. In addition, the demand for electronic transactions has attracted payment  facilitators from Europe and Asia, who are now investing in Nigerian electronic infrastructure projects.” She further pointed out that the event would provide opportunity for critical stakeholders to develop strategic framework that would improve the performance of the e-commerce sub-sector in the country.

She noted that the Federal Ministry of Industry Trade and Investment has prioritised e-commerce as a major programme that would play a critical role in the promotion of commodity trade especially, with the current realities of the unprecedented global pandemic. In view of the cross-cutting nature of e-commerce, Ngige said her ministry was open to collaborate with any organisation that would support the development of the e–commerce ecosystem in Nigeria. She also expressed optimism that the stakeholders engagement would provide a new frontier for e–commerce businesses to thrive in Nigeria as a tool for the diversification of the nation’s economy.  Also speaking, Mr. Suleiman Audu, Director, Commodities and Export Department(CED) in the Federal Ministry of Industry,Trade and Investment, underscored the need to support government’s efforts to develop the economy, reduce over-dependence on the oil sector by focusing on the development of non-oil commodity sector to enhance productivity, create jobs and ensure sustainability in revenue generation. Audu represented by Mr. Kaura Irimiya, Deputy Director, CED, said one of the thriving and promising markets globally is the e-commerce market, with estimated global sales of over $29 trillion.

He lamented that in spite of the growing opportunities in the e-commerce, Nigeria has not been able to explore it’s enormous potential.”This could be largely due to inadequate investments in the e–commerce value chain, coupled with inadequate information on the opportunities in the sector and the inability of government to provide the required enabling environment,” he explained. Audu said the deliberations and far-reaching recommendations of the stakeholders engagement would guide policy makers, regulators and other players in the e–commerce ecosystem in line with interna

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