Experts seek regulation of Nigeria’s booming digital economy
Abuja, April 2026 (TBL Africa) Experts have called for a balanced regulatory framework for Nigeria’s fast-growing online trading sector, as it continues to transform commerce, consumer behaviour, and economic structures.
The experts spoke against the backdrop of Nigeria’s expanding digital marketplace, driven by rising smartphone use and social media activity.
The Nigeria digital economy has seen rapid growth, contributing over 19 per cent to the national Gross Domestic Product (GDP).
The development, largely driven by pandemic behavioural shifts and lockdown-era reliance on digital platforms, has shifted consumer preferences toward faster, more convenient online transactions.
This has also reshaped shopping habits and accelerated the growth of e-commerce across the country.
The Director-General of the Nigerian Association of Small Scale Industrialists (NASSI), Chris Oputa, described the rise of online commerce as a product of necessity and evolving global trends.
Oputa said the expansion was driven by the widespread use of mobile phones, social media interactions, and changing consumer preferences.
He added that the trend gained momentum during the COVID-19 pandemic, when lockdowns forced many Nigerians to rely on digital platforms for shopping and services.
“The habit formed during the pandemic has remained, as people now see clear cost and convenience advantages.
“They realise that online trading reduces expenses related to transportation, shop rent, and other overheads, making it attractive, especially for Micro, Small and Medium Enterprises (MSMEs),l
“For small businesses, removing the cost of physical shops lowers the barrier to entry and supports entrepreneurship,” he said.
Oputa, however, warned that the rapid growth of the sector had exposed major gaps in regulation, data tracking, and consumer protection.
According to him, the absence of reliable data on the volume of online transactions has made it difficult to assess the sector’s true economic impact.
He said the shift from physical markets to informal online spaces had also reduced the government’s ability to generate revenue through traditional commercial levies.
“Many traders now operate from homes or remote locations, making monitoring and taxation more difficult,” Oputa said.
He also raised concerns over fraud and anonymity in online transactions, noting that criminals could exploit the system due to a lack of traceability.
To address this, Oputa proposed a national verification system for online traders to enhance accountability and consumer trust.
He said verified vendors could be assigned identification codes, while the public would be encouraged to transact only with registered operators.
Oputa further suggested an insurance-backed mechanism to compensate victims of online fraud, funded by contributions from registered traders.
He warned that unregulated cross-border e-commerce could undermine local industries and lead to job losses through increased importation of goods.
Also speaking, a Senior Lecturer at Obafemi Awolowo University, Dr Nathaniel Oladunjoye, said the growth of online trading is largely driven by Nigeria’s youthful population.
Oladunjoye noted that many young Nigerians who engaged in remote work prefer online platforms due to their flexibility and convenience.
He explained that irregular work schedules often make it difficult for such individuals to patronise traditional markets.
“This makes online shopping a practical alternative, allowing transactions at any time.
“The increasing use of smartphones and internet-enabled devices has accelerated the adoption of digital commerce.
“Many supermarkets and retail outlets now operate dedicated applications that allow customers to browse, pay, and receive deliveries seamlessly.
“With over 60 per cent of Nigeria’s population being youths, this trend will continue to grow,” he said.
Unlike Oputa, Oladunjoye described online trading as largely advantageous, citing its efficiency and ease for both buyers and sellers.
“I do not see it as a disadvantage. It enhances convenience and accessibility,” he said.
On regulation, he agreed that there is a need for government oversight, particularly in ensuring that digital platforms operating in Nigeria are properly registered.
He noted that such measures could also create additional revenue streams for the government through taxation.
Oladunjoye further emphasised the need to expand internet infrastructure to rural areas to ensure inclusive participation in the digital economy.
“Most internet infrastructure is concentrated in urban centres.
“Expanding it will integrate rural communities into online commerce,” he said.
Some traders who spoke however, said online platforms have reduced the cost of doing business and expanded their customer base.
A Lagos-based fashion retailer, Mrs Adaeze Okorie, said she no longer needs to rent a physical shop to reach customers
“Social media has made it easier for me to sell to people across the country without the cost of maintaining a store,” she said.
Similarly, a gadget seller in Abuja, Mr Sadiq Musa, said online trading allows him to operate with minimal capital.
“I can run my business from home and still reach many customers. It has really reduced my expenses,” he said.
Musa, however, expressed concerns over fraudulent buyers and lack of trust in online transactions, noting that cases of fake payment alerts and order cancellations remain a challenge for sellers.
Online shoppers also shared mixed experiences, highlighting both the convenience and risks associated with digital commerce.
Miss Esther James, a civil servant in Abuja, said online shopping saves her time and transport costs, as she can order food, clothes, or groceries and have them delivered quickly wherever she wants.
Another shopper, Mr Gilbert Ezigbo, said he has experienced issues with product quality.
“Sometimes what you order is not what you get, and it’s difficult to trace the seller,” he said.
Stakeholders agreed that while online trading offers significant opportunities, there is a need for policies that protect consumers, ensure accountability, and minimise risks.
They emphasised that regulation should strike a balance between promoting innovation and safeguarding Nigeria’s economy and digital marketplace
