Value Of Electronic Transactions Hit N48.9tr In Nigeria

Although, it is still plagued by inadequate levels of awareness, poor banking culture, lack of trust and a love for the status quo, the value of e-transactions recorded in 2015 hit N48.93 trillion, up by 11.6 per cent from 2014 in Nigeria.

This disclosure was contained in a White Paper report titled “Africa on the Verge (AoV) Convergence Series”, put together by AfricaPractice, a strategy and communications consultancy firm, with offices in Nigeria and abroad. A copy was made available to The Guardian.

The report, which observed that the establishment of the e-commerce industry has taken place as the wider digital value chain has expanded, with the availability and efficiency of e-payments becoming a crucial load bearing segment, observed that based on the significant link between the e-commerce and e-payments sectors, an adoption of similar advocacy methods supported by favourable government policies could help customers feel protected when electronically purchasing goods and services.

While noting that there has been a rise in the number of firms providing these services (e-Commerce and e-Payments) in Nigeria the report said “the value of e-transactions recorded in 2015 hit N48.93 trillion, up by 11.6 per cent from 2014.”

According to it, the Nigerian retail sector is evolving fast, with the emergence of large, modern malls arriving at the same time as Internet-hosted markets that are linking businesses to consumers without the need for physical movement or interaction by the customer.

The report observed that the traditional markets, where the vast majority of Nigerians have historically purchased goods, have not embraced modernization. “Local shopping centres are often large open spaces with poor physical infrastructure – lacking even the most basic amenities and services while being over crowded, chaotic and hectic. Such deficiencies in Nigeria’s traditional markets have set the scene for the opportunities and growth currently being enjoyed by both the modern malls, and fast emerging and growing e-commerce industry.

“Developing trust in the e-commerce and online transaction space is a difficult task as most citizens are wary of online platforms due to the high rate of cyber-crime. Nigeria is consistently amongst the 20 nations most prone to online criminal activity, according to a recent report developed by Check Point Software Technologies Ltd. However, this distrust comes mostly from those unable to weigh the disadvantages against the advantages of online transactions because of a lack of access to information about online security investments and protocols and how they protect the consumer”, it added.

Credit: Guardian