In 2024, the e-commerce and logistics sectors in Nigeria faced significant challenges with fuel price hikes, inflation, and escalating costs affecting businesses and customers.
Despite the tough year, Ope Onaboye, CEO of Renda, a Nigerian logistics startup, managed to secure $1.9 million in VC funding, providing hope for the industry.
Looking ahead to 2025, industry experts are optimistic about potential improvements. The Dangote and Port Harcourt refineries are expected to reduce energy costs, positively impacting the supply chain’s operational expenses.
Forecasts suggest that global supply chain policies and advancements in food waste management could help lower food prices, a significant contributor to Nigeria’s inflation rate.
There is anticipation for e-commerce and logistics companies to enhance financial stability by expanding exports to generate revenue in dollars. The sector may see more mergers and acquisitions following successful collaborations like MaxAB and Wasoko in 2024.
Artificial intelligence is predicted to revolutionize processes in online marketplaces, with several founders envisioning AI’s significant role in transforming operations.
Various industry leaders have shared their predictions for 2025:
Prediction 1: The year of social commerce
Luther Lawoyin, CEO of Pricepally, foresees a convergence of online and offline retail, with digital-first and brick-and-mortar businesses adopting hybrid approaches to meet consumer demands.
Prediction 2: The year of pivots, mergers, and acquisitions
Expectations include further consolidation in the supply chain sector, with a focus on mergers and pivots to sustain operations and address financial challenges.
Prediction 3: The year of increased export and reorganization of global supply chains
Anticipated growth in food exports and the need for policy adjustments to enhance trade efficiency and infrastructure to support Africa’s participation in global supply chains.
Prediction 4: The year of dollar revenue
Forecasts suggest the emergence of separate markets based on currency earnings, highlighting the importance of infrastructure solutions to cater to diverse market needs.
Prediction 5: Lower costs, higher predictability
A positive outlook on energy cost stabilization, enhanced operational efficiency, and reduced logistics expenses with increased production and improved infrastructure.
Prediction 6: The year of AI
Expectations for widespread AI deployment in customer service, transactions, inventory management, and other retail operations to enhance efficiency and consumer experiences.
Prediction 7: The year of lower food prices
Forecasts include increased investments in agriculture to reduce food inflation, along with efforts to address food waste as a strategy to lower costs and improve market accessibility.