E-commerce in Nigeria records over $2m worth of transactions per week and close to 1.3bn per month from the 38% of Nigerians who prefer to buy products through the internet, according to a survey conducted by the business management and consulting firm Philip consulting.
These figures can be attributed to the purchasing power of the middle class.
Economists define the middle class into relative and absolute terms. In relative terms, this refers to individuals or households that fall between the 20th and 80th percentile of the consumption distribution or between 0.75 and 1.25 times the median per capita income.
According to Evangeline Wiles, MD of Kaymu.com.ng,
“Economic growth has led to a strong increase in the middle class, and this powerful group of consumers are demanding quality goods and services. They are becoming the foundation of a market-oriented economy and contributing to continued economic growth and social development”.
As Nigeria continues its movement towards a digital economy, online transactions in the country are expected to reach N1 trillion by the end of 2014, boosting the cashless policy of the Central Bank of Nigeria (CBN) aimed at reducing cash-based transactions. “The rapid growth of e-commerce in Nigeria can be attributed to the middle class who are the primary consumers of mass marketed products”, Wiles stated.
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