Jumia reaffirms faith in Nigeria’s Mobile & Telecom sector

Jumia reports that 71% of Jumia Nigeria website visitors using their cell phones. The e-commerce company highlights potentials for growing the Nigerian Economy through the Mobile & Telecom Sector.

Jumia’s 2017 Nigerian Mobile Report examined how the market has democratized mobile internet use. it also examined the consumer behaviours driving increased smartphone adoption, and the role of the different stakeholders within the sector.

Jumia Nigeria website visitors

With an estimated population of 194 million people, Nigeria remains the largest mobile market in the continent. It also has more potential for growth and for competing on a level-playing ground with the developed nations. Although the economic growth of the country might not be as fast-paced as its counterparts’, it is full of hopes and promises.

Let’s examine some facts and figures from the 2017 report.

Subscriber Statistics From 2017 Nigeria Mobile Report

There were about 150 million mobile subscribers in Nigeria, equivalent to 81% penetration (as a percentage of the population) in 2016. The country’s mobile penetration was similar to Africa’s at 81% penetration (960 million mobile subscribers).

Africa’s Internet penetration was at 18% with 216 million internet users. In comparison, Nigeria’s internet penetration was much higher at 53%.

To benchmark this data, a similar report by the Nigerian Communications Commission (NCC) put the number of subscribers – by the end of December 2016 – at 154 million. This subscriber base is a sum total of all the active subscribers for telephony services on each of the licensed service providers utilizing different technologies. The difference in the number of subscribers presented by both reports can be attributed to the lack of accurate census in the country.

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Nigeria’s Internet Penetration

Meanwhile, the percentage of internet penetration widened increasingly. The number of internet subscribers peaked at 97.2 million (more than half the number of mobile subscriptions) by end of 2016. This represented a much higher penetration rate than the rest of Africa combined. The subscriber base of internet users in the country was predicted to increase by at least 30% by end of 2017.

The number of Nigerians having access to the internet – mostly through smartphones – grew in leaps and bounds. This is a clear indication that there is a huge potential for e-commerce in the country.

Jumia Nigeria Website Visitors Stats

For instance, Jumia recorded 394% growth on the sales of smartphones between 2014 and 2016. These were mostly driven by an increasing range of lower smartphones price points. And 71% of Jumia Nigeria website visitors in 2016 used their mobile phones to shop, whereas only 53% of Jumia Africa customers did so.

Mobile Industry And Nigeria’s GDP

The contribution of the telecom & mobile sector to the country’s GDP was a small fraction, according to a report by the NCC; only 9.13% was directly or indirectly accrued from the sector. Yet, it is worthy of note to mention that it was a great leap from the previous year.

E-commerce companies like Jumia are facilitating the promotion and distribution of both high-end and low-end price points mobile phones in Nigeria. The NCC is not also relenting in exercising its power to regulate the operations of the licensed telecom operators especially in the area of voice and data tariff.

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The Future of Mobile And Telecom In Nigeria

So, what is the future of the telecom and mobile sector in Nigeria? To witness an improvement over the previous years will require a collective, yet individual effort from both the private and public sectors. Primarily, the growth of the sector, among other things, depends on the availability of affordable cell phones and data tariff. To the former, Jumia is committed – with its partners – to facilitating and leading the charge in this regard.

The 2017 Nigerian Mobile Report by Jumia is available for download HERE.

3 thoughts on “Jumia reaffirms faith in Nigeria’s Mobile & Telecom sector

  • March 1, 2018 at 4:21 pm
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    It’s not far fetched to get the reason why. Mobile internet is basically having the access to the world wide web on the go.

    It’s mobility, simplicity,flexibility and accessibility is the main factors responsible.

    With a variety of television and ranging subscription plans for all subscribers needs, it will be surprising for any online business not to prioritize its website to afford greater user experience for mobile users i.e mobile sites

  • March 9, 2018 at 7:55 am
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    Jumia is committed – with its partners – to facilitating and leading the charge…waiting after the interim

  • March 19, 2018 at 7:33 pm
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    The e-commerce market in Nigeria is still a fertile ground to invest because of the ever increasing customer base. What we need as mentioned in the report is cheaper data services coupled with downward review of phone prices amongst others..

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