E-commerce has become an attractive sector for both local and international investors. With Africa's young population, increasing internet penetration, and mobile adoption, the continent is seen as a high-growth market, drawing investment that supports infrastructure, innovation, and business development.

Chinese e-commerce platform Temu has made its debut in Nigeria. The platform, known for offering low-priced products, is part of a strategic move by its parent company, PDD Holdings, to tap into Nigeria's growing e-commerce market.

Temu is positioning itself differently from other platforms by offering faster delivery, with products arriving in 7 to 15 days, compared to AliExpress’s typical 15 to 30 days. It provides more convenient payment options, accepting Naira debit cards and bank transfers for smoother transactions. By connecting buyers directly with manufacturers and bypassing intermediaries, Temu is able to offer lower prices and offer greater transparency in pricing, delivery, and quality. Thanks to strong supplier connections and significant investment from PDD Holdings, Temu offers products at heavily discounted prices, often starting at under $1. The app itself is lightweight, fast, and features a superior user experience, including image search. Additionally, users have praised Temu's seamless refund process, with refunds being processed in under 10 minutes.

Temu's aggressive pricing and direct-from-manufacturer model will intensify competition with local players like Jumia, Konga, and Jiji. This could lead to lower prices and a broader range of products for consumers.

The Nigerian e-commerce market is valued at USD 8.53 billion in 2024 and projected to grow to USD 14.92 billion by 2029, with a CAGR of 11.82%, according to Mordor Intelligence's E-commerce in Nigeria Market Size & Share Analysis (2024-2029). This presents significant opportunities for both local and international businesses. It highlights the increasing adoption of online shopping among Nigerians, fueled by rising internet penetration and a shift toward more affordable, convenient purchasing options.

Hikmatu Bilali