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Nigeria Profile: Global Snapshot Series


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Check out our Global Snapshot Series for insights into Nigeria's evolving mobile and digital marketing landscape.

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Nigeria Profile: Global Snapshot Series

  1. 1. Global Snapshot Series: NIGERIA
  2. 2. Nigeria Basic Information SapientNitro | NIGERIA| 01.16.14 2
  3. 3. NIGERIA Basic Information Nigeria is Africa’s most populous nation and has the continent’s third-largest economy (after South Africa and Egypt). Financial analysts believe that in 2014, despite political instability, crime, and violence in the country that the economy could surpass that of South Africa and become the continent’s largest. Along with its large population, Nigeria is composed of more than 250 ethnic groups; the following are the most populous and politically influential: Hausa and Fulani 29%, Yoruba 21%, Igbo (Ibo) 18%, Ijaw 10%, Kanuri 4%, Ibibio 3.5%, Tiv 2.5%. SapientNitro | NIGERIA| 1.16.14 POPULATION 174,507,539 Largest in Africa POPULATION BELOW POVERTY LINE 70% 49% URBAN POPULATION 3
  4. 4. NIGERIA Basic Information Nigeria has one of the largest telecom markets in the Africa and Middle East region, yet local consumers are almost entirely reliant on mobile telephony for their communications needs. Broadband Internet penetration is extremely low, while fixed infrastructure is lacking across the country. Nonetheless, this emerging market holds superb potential due to undersaturation across all segments and a massive and youthful population, which will drive surging uptake as telecom infrastructure improves. SapientNitro | NIGERIA| 1.16.14 Religion Major Cities (Pop. in Millions) Lagos 50% 40% 10% Muslim Christian Indigenous Kano Ibadan Abuja (Capital) 10.2 3.3 2.7 1.5 Kaduna 1.8 4
  5. 5. Nigeria Internet SapientNitro | NIGERIA| 01.16.14 5
  6. 6. NIGERIA Internet Most Nigerians are beyond the reach of broadband. Only .01% of households had fixed broadband in 2012 placing it in joint last place out of 85 countries globally, which illustrates the extremely poor form of the domestic fixed broadband market and the strong opportunities in mobile broadband. Due to this lack of service to most homes in Nigeria, accessing the Internet from a desktop is low – total internet penetration (which includes those accessing from mobile devices) was just under 33% of the population in 2012. SapientNitro | NIGERIA| 1.16.14 33% 32.9% of population are internet users, equaling approximately 57 million internet users. Lack of fixed high-speed access, due to poor telecom infrastructure, increases Nigerians use of mobile to access the Internet. .01% of households have a fixed broadband connection. 6
  7. 7. NIGERIA Internet Mobile is the preferred way of accessing the Internet in Nigeria with 73% of mobiles users accessing Mostly or Only from a mobile phone along with visiting Internet cafés and growing availability of WiMAX and Wi-Fi hotspots in urban areas. Nigeria’s internet population is relatively young – Terragon Insights reports that in 2013 78% of the internet population was between the ages of 19 and 35. SapientNitro | NIGERIA| 1.16.14 73% internet users (who own a mobile device) say they access the Internet almost exclusively (either Mobile only or Mobile Mostly) from their mobile device. PC 4% PC/Mobile Mobile Only Mostly Mobile 2014 23% 30% 43% 33% 67% 7
  8. 8. Nigeria Social SapientNitro | NIGERIA| 01.16.14 8
  9. 9. NIGERIA Social Social media has huge potential in Nigeria considering the massive size of the market, yet its penetration remains relatively low for international brands such as Facebook, which registered only 5.4 million users and a penetration of 3.9% of the population in August 2013, according to Socialbakers. Nonetheless, the site was the third most visited in August 2013, according to Alexa, while micro-blogging platform Twitter is also relatively popular as the eighth most popular site. Social networking is significantly more popular in cities, while most users utilize local platforms and forums. Nonetheless, mainstream sites such as Facebook offer the strongest potential for marketing and business usage. SapientNitro | NIGERIA| 1.16.14 It’s estimated that there are at least 9 million social network users in Nigeria equating to 15.7% of the internet population. 15% Facebook Users Social Network Sites and Share Google 42% Eskimi Twitter 2go Facebook 46% 28% 69% 57% 77% 83% 83% of social network users in Nigeria have a Facebook account placing it as the favored social network followed by 2go and Twitter. 9
  10. 10. Nigeria Mobile SapientNitro | NIGERIA| 01.16.14 10
  11. 11. NIGERIA Mobile Nigeria has one of the world’s largest mobile sectors as consumers rely on their mobile phones for most telecommunication services. This dominance of mobile telephony offers strong potential for m-commerce services, especially in banking and social media. Mobile penetration has increased to reach 67.7% of households, which is relatively low by global standards but in line with Sub-Saharan nations. The Nigerian mobile market, which ranks in the top 10 countries for mobile market growth, remains under saturated and opportunities for mobile phone uptake will continue. SapientNitro | NIGERIA| 1.16.14 67.7% of the population are mobile phone users, about 117.7 million users. 25% of mobile phone users are smartphone owners, about 29.4 million owners. Mobile Operating System Share (Dec 2013) 41% 17% 10% 2% Series 40 Android SymbianOS Key Mobile Activities (2010-2011) 45% search/browse 26% accessed a Social Network 10% sent or read email 3% stream/download music BlackBerry 2% online gaming 11
  12. 12. NIGERIA Mobile Mobile phone subscriptions are projected to expand by 38.8% over the period 2013-2020 to reach a total of 153 million. The impressive number of mobile subscribers in the country, despite the fact that many consumers have several SIMs, means that Nigeria is among the world’s biggest mobile segments, with mcommerce opportunities set to expand as more consumers purchase smartphones and sign up to mobile internet service. SapientNitro | NIGERIA| 1.16.14 M-Commerce Frequency in Nigeria Often 9.8% Always Rarely Never Sometimes 70% 13.1% 14.3% 30% 32.8% 70% of Mobile Phone Users in Nigeria purchase products online with their device. 12
  13. 13. Nigeria Ecommerce SapientNitro | NIGERIA| 01.16.14 13
  14. 14. NIGERIA Ecommerce To say Nigerian e-commerce has a bad reputation would be something of an understatement – PayPal, the world's biggest online payment processor, refuses to operate in Nigeria, while Apple does not accept Nigerianissued credit cards due to the pervasiveness of online fraud in this country. Some of the biggest obstacles to online commerce is lack of secure payments and long delivery times – companies such as are beginning to implement cash on delivery options where once the order is placed online an employee is sent to collect the payment. SapientNitro | NIGERIA| 1.16.14 Nigerian’s spent $25.7 million dollars shopping online in 2013. Mobile Commerce accounted for over 50% at 14.1 million. Top Internet Commerce Sites 1. Google 2. Jumia 3. eBay 4. Konga 5. Amazon 14