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COVID-19 and the boom in the digital economy in Nigeria

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COVID-19 and the boom in the digital economy in Nigeria

The digital economy pre-corona virus disease (COVID-19) pandemic was embraced largely by glamourous people who were being driven by a lifestyle of sophistry.

So, it was more of a status symbol, a show practice than a necessity. Despite the various promotional campaigns that pointed to the unlimited products, convenience and the cost-saving attributes of the digital economy, it was only seen as some novel and problematic concept that put people at unnecessary risk.

Then came the COVID-19 pandemic and its various restrictions – the social distancing and shelter-in-place restrictions (lockdown), as well as the economic lockdown that came with these restrictions. One of the initial consequences of these restrictions were panic buying which resulted in crowded markets and supermarkets, increase in prices of commodities and then the scarcity of the various essential and non-essential goods. These happened albeit the fact that the government exempted the essential workers and people who are engaged in the production of food, water and other essential goods.

Those who had converted to the digital economy – e-commerce and e-payment – led their lives without having the pangs of the consequences of those government-imposed restrictions as they went on and got all their basic essentials from the various online platforms that never had a disruption in their service delivery. Other people soon began converting to the digital economy in their numbers, ordering and paying for their needs and services online from the comfort of their homes and had them delivered to them promptly. Even big-time producers like the Coca-Cola, Procter & Gamble, Mastercard etc got converted and tweaked their supply chains to include offering their products and services on the Jumia e-commerce platform.

The reward from the increased digital economic activities was quick for companies in the digital economic space such as those in the e-commerce delivering goods and services to consumers and those processing the payments of these goods through contactless platforms like credit and debit cards. Jumia, Africa’s leading e-commerce platform significant traction month-on-month increase in the number of orders on its platform, a bold indication of the heavy recourse that customers place on them.

In the report of its financial results for the quarter ended March 31, 2020, Jumia recorded huge improvements in all measuring indices over the same period last year, signalling that the e-commerce company thrived in the period of the COVID-19 lockdown.

During the period under review, Jumia gross profit was €18.4 million, a year-over-year increase of 21 percent. The number of annual active consumers on its platform was 6.4 million, a 51 percent increase over the last year’s figure. Customers’ orders grew to 6.4 million, a 28 percent increase over what it was as at 31 March 2019.

Total payment value (TPV) reached €35.5 million, a year-over-year increase of 71 percent, taking on-platform TPV penetration from 10 percent in the first quarter of 2019 to 19 percent in the first quarter of 2020. JumiaPay transactions reached 2.3 million, a year-over-year increase of 77 percent, representing 35 percent on-platform penetration in terms of orders. The company’s operating loss was €43.7 million, a four percent decrease year-over-year.

Although the increase in e-commerce boosted the use of cards and mobile payments in recent years owing to convenience, ease, flexibility, speed and security, the continued COVID-19 pandemic has further increased the use of contactless payments as cash payments increase one’s risk of contracting the disease.

According to new research conducted by Crowdfund Insider in May, 50 percent of U.S. consumers reportedly availed of contactless payment methods at least four times with 69 percent agreeing that this mode is more convenient than cash transactions. Also, 60 percent of U.S. consumers confirmed that these hassle-free digital payments will urge them to continue with the process even in the post-COVID world.

Another research conducted by Capgemini, a consultancy giant and BNP Paribas shows that transactions carried out by people all over the world using digital payment technologies are expected to hit USD726 billion by 2020. This expectation is being driven by the emerging markets’ increasing adoption of digital payment services across all market segments which will bring about an increase in the volume of non-cash payments, according to Christophe Vergne, Capgemini’s Practice Leader (Cards & Payment).

Even though the United States still lags in respect of adopting cashless payments, the country is catching up fast in that direction. In a 2018 study conducted by A T Kearney, a global management consulting firm, just three percent of the cards used was contactless in the country compared to around 64 percent in the United Kingdom and 96 percent in South Korea.

One major fallout of the COVID-19 pandemic is the paradigm shift it has brought about in people’s lifestyle. More and more people are having more recourse to e-commerce subsector of the economy, shopping and paying for the goods and services online. What seemed to be a luxury thing is now embraced as a necessity, and there is no gainsaying, the converts, having tasted the convenience and cost-saving attributes, will move back to their old ways of physical shopping and cash payment systems. The digital economy has now become the new normal.

By Ezedi Udom.
Ezedi, a Business and Communication Expert, writes from Lagos

I am Paschal Ogechi Obi Chikero . I have written and published three books , I wrote Festus Keyamo's biography- Lion In Isolation .I have been a Reality TV show Producer/Creator, an Actor and Film Script Writer.

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Nigerian News

Grace Nation: Thanksgiving is a Prophetic Application for More blessings from God – Dr Chris Okafor

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Thanksgiving is a testimonies address to God that qualify you for more mind blowing miracles, when you give thanks you challenge God to do more

This and more are the declaration of God servant and the Senior Pastor of Grace Nation International aka Liberation city Dr Chris Okafor at the Thanksgiving service of the just concluded Mid year Cross over Conference held at the international Headquarters of the church in Ojodu Berger Lagos Nigeria

The Oracle of God as he is fondly called by faithful said anytime you did not give God thanks his glory, it seem as if you eat what belongs to him and when you do that the blessings you are entitled to will not come but when you do, your abundance blessings is quaranteer

In his sermon with subtitles The Powers of Thanksgiving, the Generational prophet of God said Thanksgiving Ginger Almighty God to put you in the Book of breakthrough, he said whatever condition you meet yourself gives thanks

More than 42 families dedicates there miracle babies across the world at the special Thanksgiving service, among them was a family who has been married for over 16 years without the fruit of the womb they dedicates there miracle baby at the services,saying it can only be the God of Dr Chris Okafor who have bless them with a baby

The Special Thanksgiving service came to close as famous Nigeria popular Gospel Artiste Gabriel Peters treated participants to melodious Praise and worship songs.

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Nigerian News

Grace Nation Mid-year Cross Over : The Remaining 6 Months of The Year Will be Harvest In All Side For Kingdom Promoters – Dr Chris Okafor

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Grace Nation Mid-year Cross Over : The Remaining 6 Months of The Year Will be Harvest In All Side For Kingdom Promoters - Dr Chris Okafor

It is the Spirit of God that gives inspiration to make wealth and be successful in Life, Although when God Position you for greatness you will definitely meets obstacles but when you understands the Legal technicality and The Principles of the Almighty God in the place of service, you exile in your endeavours

Speaking at the Day 3, of the ongoing Mid year Cross Over Conference at Grace Nation International Headquarters in Ojodu Berger Lagos Nigeria, The Senior Pastor of the Church Popularly known as The Generational Prophet of God Dr Chris Okafor said, the remaining second half of the year according to what he hears from God shall be, Months of Harvest for those who Promotes God’s Kingdom, the Man of God started further that the Kingdom is not about sentiment but Principles, he added in as.much as you understand the Methodology and the Legal Technicality of Give and take, you will definitely harvest in Multiples

In his sermon with theme “Breaking The Limit” Dr chris okafor Emphasised that when God assign you for greatness the enemies will like to limit you, but it is good you know which weapon you can deploy to battle the limit,

The man of God Continue that, there are various kind of Limit Projected by the Enemies, he said some limits are Poverty, sickness, barrenness, altars and barriers, but when you understand the source of such Limit, to tackle it now become something with else, Prayers and fastings is good but when you Practices Kingdom Partnership, when you partner with God, in return God too will Partner with you, therefore you break out of any Limits, God does not give to those who are not into Partner with him, the Apostle of God remarked

There is an antidote to escape death and the simple but hard to abide is by worshiping God in Truth and in Spirit, when you uses what God gave you to worship him, he marked you with the blood and when the Death come and see your mark, Death pass over, i am a commited kingdom promoter, i service God like no Tomorrow this is the reason, anytime death came knocking, My families and myself Escape, No matter how far they have gone in there conclusion we escape, Dr chris Okafor Concluded

It was a praise and worship jamboree at the Conference (Night Vigil) As foremost Popular Gospel Act with wonderful Solo Voice Who is also a Son of the Prophet Gabriel Peters dazzles faithfuls with his popular latest track and many more, as faithfuls dance to there next Level and to Harvest bountifully in the second half of the year

The Realms of the Prophetic witness another tsunami in the kingdom of Darkness as acclaimed strong man behind many family predicaments were smoke out, Leaving many demonic altars empty,,

One of the interested scenero was that of a woman who was fires a spiritual arrow on her leg, she could not walk to church but after prayers and deliverance by God servant the arrow give way and the swollen leg come back to normal,
So many mind blowing testimonies, meanwhile 64 woman receives their miracle babies at the conference on Day 3, Over 1000 Participants gave there lifes to christ, this is the most important aspect of the conference, ,

The Special thanksgiving service for the annual conference Continue on 26th June 2022 at the international Headquarters of the church in Ojodu Berger lagos Nigeria,

The sunday program is also tagged as the Cultural Sunday Service of the church where faithfuls and Participant are expected to Dress in the Native Attires

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Nigerian News

Northern Elders Forum’s Top Shot, Hakeem Baba-Ahmed , Describes Peter Obi

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Northern Elders Forum's Top Shot, Hakeem Baba-Ahmed , Describes Peter Obi

Hakeem Baba-Ahmed the Northern Elders Forum National Publicity Director has taken to Twitter to describe who Peter Obi after spending time with the Labour Party Presidential Candidate.

NAIJA NEWS NG reports that Dr. Hakeem Baba-Ahmed said Peter Obi is not an ethnic candidate. He advised those project him to stop selling him as an ethnic candidate .

READ : Why We Have Not Announced Peter Obi And Kwankwaso Alliance – Doyin Okupe

I spent valuable time with Mr Peter Obi this morning.I wish those who see him as an ethnic candidate can get to know him better.I also wish those who try to sell him will tone down his ethnic identity.I hope the nation will see the candidates up close, we could see a revolution.

Hakeem Baba-Ahmed

Hakeem Baba-Ahmed tweet on Peter Obi

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