Nigeria is emerging as a key driver of Jumia’s ongoing recovery, with the e-commerce company reporting a 30% year-on-year increase in physical goods orders and a 43% rise in Gross Merchandise Value (GMV) in the country. The latest performance update highlights a robust rebound following the macroeconomic and currency volatility that affected Nigeria in 2024.
Jumia attributes its success to a localized operating model and infrastructure that allow it to adapt to the realities of the African market. “We continue to see a pullback from certain global entrants in some markets like Nigeria, while we steadily gain local market share,” the company said. By leveraging strong vendor relationships, cost-efficient logistics, and deep market understanding, Jumia believes it has created a competitive edge over international platforms that have scaled back investment or raised prices.
Localized Strategy and Logistics Network Key to Growth
Executives highlighted that Jumia’s ability to manage payment, delivery, and customer service directly has helped it build trust in a market where e-commerce is still developing. Its extensive logistics network, particularly in Nigeria, gives the company a significant advantage over global competitors who rely on smaller, less efficient third-party providers.
The company has expanded aggressively over the past 18 months, opening operations in hundreds of new cities, particularly in eastern, western, and northern Nigeria. Notably, delivery routes now reach previously underserved northern cities such as Sokoto and Maiduguri.
Jumia also emphasizes its vendor strategy as a differentiator. By sourcing a competitive assortment of products through Chinese suppliers, it can compete effectively on both price and variety against global platforms.
Opportunities Amid Challenges
Despite its growth, Jumia continues to face hurdles, including inflation, naira devaluation, and security concerns. However, with limited full-scale competition from global players—Amazon has not yet entered the market, while Shopify and Alibaba operate mostly cross-border—Jumia has a significant opportunity to consolidate its position in Nigeria.
The company’s latest results suggest that its strategic reset and focus on local adaptation are bearing fruit, positioning Nigeria as a central pillar in Jumia’s broader recovery and long-term growth strategy.