Nigeria’s eCommerce fashion market to hit $423m in 2024- Minister

The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, has stated that Nigeria’s eCommerce fashion market is projected to hit $423m by 2024.

She made this known at the unveiling of the Nigerian Export Promotion Council’s Export Skills Acquisition Centre in Lagos on Friday.

According to her, the $423m represents 19 per cent of the total e-commerce market in Nigeria.
She said the eCommerce fashion market is also expected to increase at a Compound Annual Growth Rate for the next four years, representing 8.2 per cent, and a projected market volume of $579.9m by 2028.

She, however, urged exporters to take advantage of the opportunities offered by the eCommerce fashion sector to boost the nation’s Gross Domestic Product.

She noted that the event focuses on Africa’s young population of 1.3 billion people which is set to double by 2050, adding that the United Nations estimates that more than a third of the world’s young people will live in Africa.

“With the opportunities offered by the African Continental Free Trade Area coupled with the growing consumer trend on the continent for Made in Africa fashion, particularly among young people and the growing urban middle class who make up more than 35 per cent of the population, there is no better time to kick-start this noble project than now.

“Reports have disclosed that the African fashion industry is estimated to be worth $31bn, while the global fashion industry is estimated to be worth $2.5 trillion.

“This means that Africa’s fashion industry currently accounts for about 1.2 per cent of the global fashion market.

“However, the sector continues to face some challenges that inhibit African fashion houses and designers from the unparalleled success enjoyed by their Western counterparts,” she said

The minister assured that the establishment of the center is driven by the federal government’s commitment to addressing some of the fundamental challenges that have hindered Nigeria’s export growth and economic diversification.

“We have always known that the key to unlocking our nation’s potential lies in equipping our citizens with the skills and knowledge needed to compete on a global scale.

“This centre is a response to that need, providing training that will empower our youth, entrepreneurs, and small business owners with the tools necessary for success in the export sector,” she assured.

She stated that the ministry was in line with the Industrial Re-vitalisation Plan and is working with relevant stakeholders such as the NEPC to ensure that the youth and women in Nigeria realize their full potential through the acquisition of the requisite skills and techniques for the export of quality products to the global market, “which I believe the ESAC will achieve.”

According to her, the Exports Skill Acquisition Centre will offer specialised training programmes that cover a wide range of export-related skills, including product development, quality control, international trade regulations, logistics, marketing, and digital skills.

The programmes have been designed to equip participants with practical skills that meet international standards, thereby increasing the competitiveness of our products in the global market.

“Through this initiative, we aim to create a new generation of exporters who are knowledgeable, innovative, and prepared to meet the demands of international trade.

“We believe that by investing in our people, we are investing in the future of our economy. This centre will serve as a platform for individuals to turn their ideas into viable businesses, enabling them to tap into the vast opportunities that the export market has to offer.

“As we look to diversify our economy and reduce reliance on a single sector, export promotion has become a strategic priority. The centre will play a vital role in achieving this goal by addressing the skills gap that currently exists within the export sector.

“By equipping our citizens with the necessary expertise, we will be able to scale up the production of goods and services for export, thus generating more foreign exchange, creating jobs, and reducing poverty.”

She pointed out that the skills acquired at the centre will not only benefit individual participants but will also have a multiplier effect on the broader economy, stressing that as businesses grow and export revenues increase, the positive impact will be felt across various sectors, including agriculture, manufacturing, and services.

“Our vision is to see our locally-produced goods proudly displayed on store shelves around the world, showcasing the quality and craftsmanship that our nation is known for,” she averred.

Earlier, the Executive Director and Chief Executive Officer, NEPC, Nonye Ayeni, said that the collaborative centre would further enhance the quality and standards of products that will be exported to the global market.

The NEPC boss said ESAC will boost non-oil exports by increasing the export of value-added products from Nigeria, thereby creating jobs and inspiring Nigerians, especially the youth and women, to imbibe an export culture.

She predicted that the global Bags & Accessories e-commerce market is expected to increase over the next four years, maintaining that reports show it will reach US$228,209.5m by 2024 and 7.7 per cent at a Compound Annual Growth Rate for the next four years 2024-2028.

“As a sub-market, it accounts for 18.2 per cent of the global fashion market. Specifically, the global fashion industry boasts a staggering valuation of $1.7 tn for the year 2023 contributing about 2 per cent to the global Gross Domestic Product, thus laying credence to its economic impact on global trade,” Ayeni added.