Based on industry reports, Nigeria’s e-commerce market continues to experience robust growth on the back of increased internet access and improved mobile connectivity with about 500,000 online orders placed daily.
As the Federal Government targets the transformation of key sectors of the economy under the new broadband regime, pundits expect this move to enhance electronic transactions thereby raising the hospitality sectors capacity to contributing over efficiently percent to Gross Domestic Product.
As announced by the Nigerian Communications Commission (NCC), active internet subscription in Q3 2014 stood at 73.9 million. This represents an internet penetration of 43 per cent in the same quarter. The country’s internet growth is expected to reach a whooping 84.3million users by the end of 2017.
On the backdrop of this development, MainOne, Nigeria’s world class submarine cable system, in partnership with the federal government has begun running state of the art IP NGN lines down the coast of West Africa, regional and metro terrestrial fiber optic networks, and data center facilities in a bid to grow and equip players in sectors like the hospitality industry with broadband solutions.
According to the plan, easing up the 2.3GHz licensing process, which is expected to offer higher speed services for users, will expand traffic and enable start-up’s in the travel sector drive access to product offerings via cyber space.
With online businesses having the potential of contributing over $500million to Nigeria economy annually, stakeholders in this industry are set to take advantage of the opportunities this presents
Speaking on this development, Marek Zmyslowski, managing director Jovago Nigeria said, “E-commerce is the future of business and Nigeria being one of the fastest growing economies in the world has the market size and talent pool to develop this space. As focus in this area grows, we find the hospitality industry will follow this upward trend. This is something we are optimistic about”
Addressing the effects of internet penetration for the sector, analysts at FBN Capital said, “The impact of getting the travel and tours industry on the grid will yield deeper impressions on local sector operators with higher earnings accrued than the previous fiscal year.”
A survey carried out by the group found that 92 per cent of Nigerians who booked hotel and other services online were content with the experience.
However, more it also found that 78 per cent of user expressed cyber security concerns; a leading global concern issue.
As the CBN continues to enforce the adoption of the two-factor authentication system, matters surrounding online safety have been made a top government priority.