One of Nigeria's strengths has always been its boisterous population of over 200 million. By widely accepted estimates, Nigeria's population constitutes over 2% of the world's population. More than 50% of Nigeria's population lives in urban areas.
Tens of millions of Nigeria's population are active Internet users. These facts result in a fast growing e-commerce market that is difficult to overcome. While the market is primarily made up of small and medium-sized enterprises (SMEs), it also has a healthy number of large companies that have invested heavily in the e-commerce sub-sector.
Creative and resilient minds
Nigeria has a creative and young population. To thrive with this large population requires creativity and resilience. This has translated into a demographic that always comes up with the best ideas to stand out from the crowd.
So it's not uncommon for some of the best ideas and start-ups to come from the West African country.
Investment
US Ambassador to Nigeria Mary Beth Leonard recently revealed at the Nigeria Tech Summit that Nigerian startups raised over 60% of African funding in 2021.
“Africa-based tech startups have raised over $2,9 billion. Nigerian startups, which are creating new products, services and platforms, raised US$1,7 billion of this total or around 60% of it. Africa has a total of seven tech 'unicorns' or companies valued at over $XNUMX billion.”
While growth has been steady, the increased investment seen in 2021 is a clear indication of confirmation in the Nigerian market. When applied correctly, the massive investments would result in a boost to the Nigerian eCommerce scene.
data centers
The past 10 years have seen significant growth in the number and quality of data centers in Nigeria. There were also entries by large international operators who acquired or purchased stakes in local data center operators.
In 2020, Actis acquired shareholder control of Rack Centre, a level III data center located in the Oregun area of Lagos. Equinix has acquired MainOne, operators of the MDX data centers on the Lagos Lekki Hub, for US$320 million, in 2021.
In 2021, Digital Realty (Interxion) invested in Medallion, one of the oldest and strongest players in the market, based in Victoria Island, Lagos. 2021 saw data centers from Africa enter the Nigerian market. They recently launched their LOS1 data center located in Eko Atlantic City.
Among the new players in the Nigerian space, there are plans to build new data centers in Lagos, Kano, Abuja and Port Harcourt. These centers will eventually give rise to a very robust local accommodation market, which will translate into a better user experience in Nigeria.
Nigeria is evolving and will have evolved significantly, becoming arguably the biggest and strongest e-commerce market in Africa.
