Nigeria Social Commerce Market Intelligence and Future Growth Dynamics Databook

Summary

According to PayNXT360, social commerce market in Nigeria is expected to grow by 20.7% on annual basis to reach US$1,566.5 million in 2025.

The social commerce market in the country experienced robust growth during 2021-2024, achieving a CAGR of 33.1%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 11.8% during 2025-2030. By the end of 2030, the social commerce sector is projected to expand from its 2024 value of USD 1,298.0 million to approximately USD 2,740.4 million.

This report provides a detailed data-centric analysis of the social commerce sector in Nigeria, covering market opportunities and risks across a range of retail categories. With over 50+ KPIs at the country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities in the social commerce sector by type of domestic vs cross-border, type of social platform, type of payment method, business model, end-use consumer segment, and type of city. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Nigeria's social commerce sector is experiencing rapid expansion, driven by increasing internet penetration, smartphone adoption, and evolving consumer behavior. The integration of shopping features within social media platforms, the rise of influencer-led shopping, and the growing popularity of live shopping events indicate a fundamental shift in how consumers interact with brands. Businesses that leverage these trends by offering seamless, personalized shopping experiences will likely see sustained growth in the coming years.
At the same time, consumer preferences are shifting toward ethical and sustainable products, creating opportunities for brands that prioritize responsible sourcing and transparency. Regulatory oversight, particularly around influencer marketing and data privacy, may also shape the industry's trajectory. Over the next few years, businesses that adapt to these trends while ensuring compliance with emerging regulations will be well-positioned to capitalize on Nigeria’s growing social commerce market.

Rapid Growth in Social Commerce Adoption

• Nigeria’s social commerce growth reflects the increasing reliance of Nigerian consumers on social media platforms for shopping, particularly through integrated e-commerce features. As more businesses leverage social media as a primary sales channel, social commerce is becoming a key component of the country’s digital economy.
• The rise of social commerce is primarily driven by widespread smartphone adoption and improved internet connectivity, making online transactions more accessible to a broader consumer base. Additionally, the convenience of in-app purchases and targeted advertisements has encouraged more consumers to shop directly through platforms such as Facebook, Instagram, and WhatsApp. This shift has prompted businesses to invest in digital marketing and optimize their sales strategies for social media engagement.
• Over the next two to four years, Nigeria’s social commerce sector is expected to become more sophisticated, with businesses adopting AI-driven recommendations and seamless payment solutions. As consumer confidence in online transactions grows, companies will likely invest further in personalizing shopping experiences and integrating emerging technologies. However, regulatory oversight may also increase as the market expands, requiring businesses to navigate evolving compliance requirements while capitalizing on the sector’s rapid growth.

Integration of Shopping Features in Social Media Platforms

• Social media platforms in Nigeria increasingly integrate shopping functionalities, allowing users to browse and purchase products without leaving the app. Facebook and Instagram have introduced in-app shopping features tailored to the Nigerian market, enabling businesses to showcase products, process payments, and engage with customers directly. This integration transforms how consumers interact with brands, reducing the need for third-party e-commerce platforms.
• The high engagement rates on social media among Nigerians and the growing demand for convenient shopping experiences are key drivers of this trend. Businesses benefit from direct access to a vast audience, while consumers enjoy a seamless shopping experience that eliminates the complexities of navigating multiple websites. This shift has led to increased investment in social commerce strategies, with brands leveraging targeted advertising and influencer marketing to enhance customer acquisition.
• Over the next two to four years, shopping features on social media platforms are expected to become more advanced, incorporating AI-driven product recommendations and frictionless payment options. As businesses refine their social commerce strategies, consumer trust in in-app purchases will likely strengthen, further driving adoption. However, companies must also navigate regulatory developments and data privacy concerns, as social commerce is important in Nigeria’s digital economy.

Rise of Influencer-Led Shopping

• Influencer-led shopping is becoming dominant in Nigeria’s social commerce landscape, as influencers use their platforms to promote and sell products directly to their followers. This trend is built on the trust and rapport influencers have developed with their audiences, making their recommendations more effective than traditional advertising. As a result, businesses are increasingly partnering with influencers to drive sales and increase brand visibility.
• The success of influencer marketing in boosting product sales is a major factor behind this shift. Consumers in Nigeria tend to view influencer endorsements as more genuine and relatable than conventional digital advertisements. This has led to a surge in influencer-driven campaigns, particularly in the fashion, beauty, and electronics sectors, where social proof and direct engagement significantly influence purchasing decisions.
• Influencer-led shopping is expected to expand over the next two to four years, with influencers playing a central role in shaping brand strategies. However, as the market matures, regulatory bodies may introduce stricter compliance requirements, particularly regarding transparency, paid promotions disclosure, and taxation. Businesses and influencers will need to adapt to these evolving regulations while continuing to leverage social media’s reach for commerce.

Growth of Live Shopping Events

• Live shopping events are becoming an integral part of Nigeria’s social commerce landscape. These events allow retailers to showcase and sell products in real-time through live broadcasts. This format gives consumers a more engaging shopping experience, as they can interact with sellers, ask questions, and see product demonstrations before purchasing. Platforms such as Facebook Live, Instagram Live, and TikTok are being widely adopted by businesses to drive sales through this interactive approach.
• The primary drivers of this trend include the demand for real-time engagement and the authenticity of live presentations. Consumers are more likely to trust a product when they see it being used or reviewed live rather than relying on static images or pre-recorded advertisements. Additionally, the sense of urgency created by limited-time offers and flash sales during live events encourages immediate purchasing decisions, boosting business conversion rates.
• Over the next two to four years, live shopping will become a staple in Nigeria’s digital retail sector, with more brands hosting frequent live events to increase engagement and sales. Advancements in streaming technology and payment integration will further enhance the live shopping experience, making transactions more seamless. As competition intensifies, businesses that invest in high-quality, interactive content and strategic influencer collaborations will be better positioned to capture market share in this growing space.

Emphasis on Ethical and Sustainable Shopping

• Nigerian consumers are increasingly prioritizing ethical and sustainable shopping, leading to a shift in how products are marketed and sold through social commerce platforms. Businesses are responding by highlighting locally made and environmentally friendly products, appealing to consumers who value sustainability. This trend is particularly evident in sectors such as fashion, beauty, and food, where demand for eco-conscious and ethically sourced products is growing.
• The rise in environmental awareness and the push to support local businesses are key drivers behind this shift. Consumers are becoming more conscious of purchasing decisions, favoring brands emphasizing ethical sourcing, fair trade practices, and reduced environmental impact. Social commerce platforms are adapting by providing dedicated sections for sustainable products and leveraging influencer marketing to promote responsible consumer behavior.
• Over the next two to four years, brands prioritizing sustainability and ethical business practices will likely gain a competitive advantage in Nigeria’s social commerce market. As consumer expectations evolve, businesses must invest in transparent sourcing, eco-friendly packaging, and fair labor practices to maintain credibility. The growth of this trend may also encourage stricter regulatory frameworks and industry standards to ensure authenticity and prevent greenwashing in social commerce.

Competitive Landscape and Regulatory Developments in Nigeria's Social Commerce Market

Nigeria's social commerce sector is poised for continued expansion, fueled by increasing smartphone penetration, improved internet connectivity, and the integration of advanced shopping features within social media platforms. Major players such as Facebook, Instagram, and WhatsApp dominate the market, while local e-commerce platforms such as Jumia leverage strategic partnerships to enhance their offerings. The rise of new entrants catering to niche segments further intensifies competition, driving innovation and diversifying consumer options in digital retail.
The sector's growth will be shaped by evolving consumer preferences, regulatory developments, and the integration of financial services such as Buy Now and Pay Later models. As regulatory frameworks evolve to ensure fair competition and data protection, businesses must remain adaptable to maintain compliance while capitalizing on new opportunities. Companies that invest in consumer trust, personalization, and seamless transaction experiences will be better positioned to thrive in Nigeria’s rapidly expanding social commerce landscape.

Current State of the Social Commerce Market

• Nigeria's social commerce sector is experiencing rapid growth. This expansion is driven by increased internet penetration and the widespread use of smartphones, which facilitate greater access to social media platforms. 
• The convenience of in-app shopping features and targeted advertising strategies have made it more appealing for consumers to shop directly through social media. The growing trust in online transactions among Nigerian consumers further supports this trend.

Key Players and New Entrants

• Major platforms such as Facebook, Instagram, and WhatsApp dominate Nigeria's social commerce landscape, leveraging their extensive user bases to facilitate online transactions. Local e-commerce platforms such as Jumia have also integrated social commerce features, enhancing their reach within the market. 
• New entrants, including niche platforms targeting specific consumer segments, are emerging to capitalize on the growing market. These platforms often focus on unique value propositions, such as supporting local artisans or promoting sustainable products, to differentiate themselves from established players.

Recent Launches, Mergers, and Acquisitions

• The Nigerian social commerce sector has seen significant partnerships expand market reach and enhance service offerings. For instance, in May 2024, Jumia Nigeria launched two new Buy Now, Pay Later partnerships with Easybuy and CredPal. These partnerships aimed to expand Nigerian consumers' access to Jumia's marketplace, conveniently allowing them to make purchases and spread their payments over a set period. 
• Additionally, the fintech sector has witnessed substantial investments, with companies such as Moniepoint achieving 'unicorn' status after raising $110 million. This indicates a growing interest in integrating financial services with social commerce platforms.

Outlook

• Over the next few years, Nigeria's social commerce market is expected to continue its upward trajectory, driven by technological advancements and increasing consumer adoption. Integrating financial services, such as Buy Now and Pay Later options, will likely become more prevalent, offering consumers greater flexibility.
• However, businesses must remain vigilant regarding regulatory changes and adapt to evolving consumer preferences to maintain competitiveness in this dynamic landscape. Emphasis on data privacy and consumer protection will be crucial as the market matures.

Regulatory Changes

• Nigeria's regulatory landscape for mergers and acquisitions has evolved, with the Federal Competition and Consumer Protection Commission (FCCPC) actively shaping policies to ensure fair competition. Recent amendments to the Capital Gains Tax Act by the Finance Act 2021 have introduced exemptions to encourage investment activities. 
• These regulatory developments foster a competitive market environment, promoting innovation and protecting consumer interests within the social commerce sector.

Scope

This report provides in-depth, data-centric analysis of social commerce in Nigeria. Below is a summary of key market segments:

Nigeria Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030

Nigeria Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2021-2030

• Nigeria Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2021-2030
­--Clothing & Footwear
­--Beauty and Personal Care
­--Food & Grocery
­--Appliances and Electronics
­--Home Improvement
­--Travel
--Hospitality

• Nigeria Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2021-2030
­--B2B
­--B2C
­--C2C

• Nigeria Social Commerce Industry Market Size and Forecast by End Use Device, 2021-2030
­--Mobile 
­--Desktop

• Nigeria Social Commerce Industry Market Size and Forecast by Location, 2021-2030
­--Domestic
­--Cross Border

• Nigeria Social Commerce Industry Market Size and Forecast by Location, 2021-2030
­--Tier-1 Cities
­--Tier-2 Cities
­--Tier-3 Cities

• Nigeria Social Commerce Industry Market Size and Forecast by Payment Method, 2021-2030
­--Credit Card
­--Debit Card
­--Bank Transfer
­--Prepaid Card
­--Digital & Mobile Wallet
­--Other Digital Payment
­--Cash

• Nigeria Social Commerce Industry Market Size and Forecast by Platforms
--Video Commerce
--Social Network-Led Commerce
--Social Reselling
--Group Buying
--Product Review Platforms  

• Nigeria Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2024
­--By Age
­--By Income Level
­--By Gender

Reason to buy

• Insights on Strategy & Innovation: Navigate through future direction of the social commerce industry market by understanding strategic initiatives taken by key players to gain market share and innovation. 

• In-depth Understanding of Social Commerce Market Dynamics in Nigeria: Understand emerging opportunities and future direction of the social commerce market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.

• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics. 

• Competitive Landscape: Get a snapshot of competitive landscape in social commerce sector with key players and market share in Nigeria. Formulate your strategy by gaining insights into the current structure of the market.

• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the social commerce sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.

• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments in social commerce sector.