Nigeria’s economy is making a push toward cashless payments as digital payment and electronic banking are being implemented in phases across most states of the federation. At present, many transactions can be conducted electronically using several of the emerging digital financial services platforms.
Cross-Border eCommerce/B2B eCommerce/Online Payment
The successful adoption of electronic payments in Nigeria is encouraging the entrance of payment service providers which see Nigeria as a promising market. Naira-denominated debit cards from many local banks such as Citibank, Zenith, UBA, and Fidelity have been used for years by Nigerian travelers to make payments in countries across the world including the United Kingdom, Germany, South Africa, and the United States. However, due to a lingering forex shortage, banks have stopped allowing international payments of any sort on these debit cards. Customers with dollar-denominated cards continue to have access to international payments. The demand for electronic transactions has attracted payment facilitators from Europe and Asia who are investing in Nigerian electronic infrastructure projects. Online commerce and financial technology in Nigeria is strengthened by fast growing youth population, expanding consumer power, and increased smartphone penetration. Current forex restrictions by the Central Bank of Nigeria have, however, limited the foreign spending capacity of Nigerians.
eCommerce Intellectual Property Rights
In 2015, the Nigerian government signed the Cybercrime Bill into law to prohibit and prevent fraud in e-commerce. The purpose of the Cybercrimes Act of 2015 extends beyond prohibiting, preventing, and criminalizing online fraud, but also prescribes punishments and sets the institutional framework for enforcement. The goal is to protect e-business transactions, company copyrights, domain names and other electronic signatures in relation to electronic transactions in Nigeria. However, these challenges still exist as internet fraud is still highly prevalent in Nigeria.
Digital Marketing & Popular E-Commerce Sites
Africa Internet Group owns online retailer Jumia and nine other e-ventures. Jumia is one of Africa’s best-known start-ups. Since its inception in Lagos in 2012, the company now operates in several other African countries selling consumer goods. In April 2019, Jumia listed on the New York Stock Exchange (NYSE). Konga, a competitor to Jumia, was set up in 2012 selling a wide range of products from home appliances to groceries. It merged with Yudala in 2018 but continued to operate under the Konga brand name.