Retail

Formal retailing is just getting started in Nigeria, and currently accounts for roughly 5% of the market. There are a host of obstacles to growth, starting with the difficulty of acquiring land on which to establish a mall, store or restaurant. Sourcing goods locally is difficult, while clearing imports is expensive and time consuming. Transporting goods to stores, finding staff and winning over a buying public that is either sceptical or cannot afford the products are also challenges. Retailers have long expected that the Nigerian market would require a long-term approach, and entering early would mean building brand loyalty among consumers even before they may be able to afford to buy. For now, that means overcoming the obstacles and additional costs associated with the market, in the hope of enjoying significant profits in the future.

This chapter contains an interviews with Jeremy Hodara, Founder and co-CEO, Africa Internet Group.