Online payment services such as Interswitch, Flutterwave, and Paystack have fueled the growth of the e-commerce sector.

In the next four years, Nigeria's e-commerce sector is expected to hit US$14 billion.

In recent months, the industry has grown significantly, attracting significant investment and providing a robust marketplace for small and medium-sized businesses.

Coronation Merchant Bank (CMB) stated that assuming an average annual growth rate of 11.7% over the next four years would result in a market volume of $14,1 billion by the end of 2027.

"This forecast underscores the sector's resilience and potential for continued expansion, presenting a compelling opportunity for strategic investment," said Chinwe Egim, CMB's chief economist.

"It is important to underscore the pivotal role that enhanced mobile connectivity has played in facilitating widespread internet access for an increasing number of Nigerians," she said in a statement to ITWeb Africa.

According to data from the Nigerian Communications Commission, mobile network coverage has reached an estimated 101 percent in August 2023, based on a population of 218 million.

Online payment services such as Interswitch, Flutterwave, and Paystack have also fueled the growth of the e-commerce sector.

E-commerce is considered as providing a dynamic platform for Nigerian firms to promote their products on a worldwide scale.

Despite the fact that Nigeria's e-commerce landscape has enormous promise, CMB noted current logistical and supply chain issues.

These include weak infrastructure, limited warehousing, and rural communication concerns.

Concerns about increased operational expenses, cyber security, and fraud risk have also caused some e-commerce enterprises to reduce or discontinue operations in the country.

"Addressing these challenges comprehensively is paramount for the sustained growth and success of the e-commerce sector in Nigeria," Egim said.

President Bola Tinubu's administration, which has been in office since May, has committed to focus infrastructure and transportation in order to improve the efficiency and dependability of the e-commerce supply chain.