Redefining Supply Chain in Nigeria's Retail Market Space

The Nigerian retail market remains fragmented and dependent on informal sales channels such as neighbourhood markets and kiosks, which account for 90% of retail activity. As in most emerging markets, the bulk of household expenditure in Nigeria is directed towards food.

With a population of over 200m, Nigeria is a large and diversified economy, despite the government’s reliance on oil and gas revenue. While the Covid-19 pandemic and subsequent oil price crash caused a contraction in economic growth in 2020, it also led to rapid digitalisation across commerce, education and communication. This shift is expected to put Nigeria in a favourable position for recovery in the medium term.

The retail business is growing with the redefinition of how supply meets demand. Most recently, retailers need not worry on how to restock their stores with groceries as technology is being deployed by fast rising business to business (B2B) firms.

This evolution is bringing more fulfilment to retailers, wholesalers, manufacturers and these tech firms that play the middleman role with their services readily accessible online and offline.

A micro business owner, Aliyu Bala Idala in Kano is happy that Alerzo, a B2B e-commerce firm goes the extra mile by offering free delivery of goods he orders.

He shared: “I do buying and selling in Kachachi market, a local government in Kano. I sell provisions and food items at wholesale prices. I have been running this business for the past 10 years. We give glory to God that I have been doing business with Alerzo for the past two years and I am happy doing business with them.

“In the past, we usually wouldn’t get goods delivered to us. We would go round the markets buying from one shop to the other. But now we don’t go through the stress of going to the markets; we order what we want and they deliver to us at our shop. This is a big achievement for Alerzo.”

Not only that he and other traders get his goods delivered at the right time for free by Alerzo, he added that Alerzo empowered them with PoS machines, “We enjoy making use of the PoS. It helps in our daily dealings with customers.

July 26, 2022