E-Business
B2B e-commerce Platforms and the Consumer Goods Distribution Value Chain
By Lere Ojedokun
International rating agency eMarketer estimated that the global e-commerce sector would be worth USD27 trillion in 2020. This may not be anything near what the world’s e-commerce market expected when Phil Brandenberger of Philadelphia, the man famed to be the initiator of the e-commerce revolution, made his first purchase on August 11, 1994.
Prior to 2012 when this revolution extended to the country, most Nigerians used to hear of people who shop at the comfort of their homes and have their orders delivered to them. This used to be one of those foreign stories, told by the privileged few who have lived overseas.
Today, e-commerce has grown to become a big part of Nigerians with many platforms offering general and specialised products and services. The burgeoning market could only be as a result of the many benefits that accrue to all the touchpoints in the value chain – e-commerce platforms, manufacturers, wholesalers, logistics services providers, customers and many others.
The success of the e-commerce platforms in the country, which play mostly in the business-to-customers (B2C) subsector spurred many other players who see a big opportunity in extending such services to the business-to-business (B2B) subsector.
In the past few years, many platforms like Alerzo, Omnibiz Africa, Wabi Nigeria, Chooya etc have sprung up and are helping to facilitate the estimated USD100+ billion informal retail market in the country.
Just like the B2C e-commerce platforms are positively touching the lives of their stakeholders, the B2B platforms, with their niche offerings, are positively facilitating the businesses of their stakeholders, especially the manufacturers, the wholesalers and the retailers, who have latched onto their platforms.
Among other things, the manufacturers and distributors benefit from the logistics services offered by platforms like Alerzo as these platforms transport the ordered goods from manufacturers’ and distributors’ warehouses to the target retailers, scattered all over the country at no cost to these manufacturers and distributors.
Perhaps, one of the most strategic offerings of the B2B e-commerce platforms for manufacturers and distributors in the country is market intelligence. They collect data of, and develop insights around, consumer behaviours and preferences.
Manufacturers and distributors can partner with these B2B companies to share these insights and use them to guide their production and supply respectively, ultimately giving them a better understanding of their end consumer.
For the retailers, the B2B e-commerce platforms have not only boosted their profitability but have also reduced the burden that comes with the day-to-day running of their businesses as well as making their businesses more sustainable.
These platforms buy from the manufacturers and/or the big-time distributors at good prices and through their scale sell to the informal retailers at prices below what are obtainable in the open markets where third party costs are factored into the prices.
Another major gain of the informal retailers from the emergence of the B2B e-commerce platforms is that they can sit in the comfort of their shops or homes and, with a click of a button on any of the multiple channels open to them, restock their shops. Alerzo, for instance, enables this through its retail app, Alerzoshop.
Some of these B2B platforms even go the extra mile of delivering these retailers’ orders to their shops at no extra cost to them.
For example, Alerzo has been delivering the orders of the over 80,000 informal retailers across the country who have signed up to its platform, and in the process, is elevating their health status, improving their quality of family life and saving them huge resources that would have been expended in the running of their businesses.
The icing on the cake for these retailers is that many of these B2B platforms offer book-keeping applications for retailers to track their sales, cost, price, profit and manage their customers, as well as payment platforms (which manufacturers and distributors can also take advantage of) like AlerzoPay and Veedez by Alerzo.
With an increasing number of retailers adopting smarter ways of doing business, it is expected that more manufacturers will take advantage of this trend, especially in a growing competitive market.
Lere Ojedokun is a Communications Expert based in Lagos
Nigeria Data Protection Commission (NDPC) has signed a Memorandum of Understanding with Mastercard to enhance data protection in Nigeria.
Dr. Vincent Olatunji, commissioner, NDPC and Derek Ho,deputy chief privacy officer, Mastercard
The agreement was sealed during a workshop where 150 Data Protection Officers (DPOs) were trained on Data Protection Impact Assessments (DPIAs).
Dr. Vincent Olatunji, commissioner, NDPC, said the event kicks off activities for the 8th NADPA conference, highlighting government efforts to train more certified DPOs.
Olatunji also disclosed the Federal Government’s commitment to increasing the number of certified DPOs with the required skills to manage data protection.
He noted that Nigeria’s digital-savvy youth are key to driving this agenda.
“Human capital is really key to us, and the ecosystem we are regulating is very special. It is still new, still emerging, and we need all we can to build the capacity of officers.
“We want to build the capacity of our people so we can be able to deliver on our mandate and fully deepen privacy in Nigeria.
“We are targeting to build the capacity of 250,000 DPOs annually, and we are working with partners like Mastercard to achieve that,” he said.
Derek Ho,deputy chief privacy officer, Mastercard, also stressed the need for collaboration to build trust in the digital economy and urged participants to embrace training as data protection keeps evolving.
Central Securities Clearing System PLC (CSCS) has announced the launch of *7270#, its Unstructured Supplementary Service Data (USSD) code service, set to go live on May 8th, 2025.
The USSD code service is an innovative solution designed to enhance the ease and accessibility of investment services for all users.
Also, this service leverages the network capabilities of MTN Nigeria to bring unparalleled convenience to investors.
Driven by a relentless commitment to innovation, CSCS aims to revolutionize information access within the Nigerian capital market through this USSD code service.
As the Central Securities Depository (CSD), CSCS focuses on enhancing investor experiences and providing deeper market insights with unparalleled convenience.
The CSCS USSD code service offers seamless access to essential market information directly from mobile phones, eliminating the need for internet connectivity or specialized trading platforms.
Investors can now effortlessly retrieve Clearing House Number (CHN), check Direct Cash Settlement (DCS) status, view stock positions, account balances, and account status confirmations.
Haruna Jalo-Waziri, managing director/chief executive officer of CSCS, said ” We are excited to launch the *7270# USSD code service, a significant step in leveraging mobile technology to democratize access to account and portfolio information.
“This service empowers every investor, regardless of their location or resources, to stay informed about their investments. At CSCS, we believe that financial inclusivity is key to driving economic growth.
“Our partnership with MTN Nigeria on this project represents a significant leap toward a more inclusive financial landscape, leveraging the spread of the MTN network.
“This collaboration enhances the investing experience, reinforcing our shared commitment to empowering individuals with the tools they need to manage their financial futures effectively.” he added.
The CSCS USSD code service will initially be available to MTN users only. However, CSCS plans to expand this service to other networks soon.
This innovative service offers investors streamlined and secure access to critical market information at their fingertips.
Aisha Umar Mumuni, chief digital officer of MTN Nigeria, said, “This collaboration with CSCS on the *7270# USSD service underscores MTN’s commitment to harnessing the power of mobile technology to simplify complex processes for our users.
“By making critical investment information available at the touch of a button, we are helping to democratize access to the capital markets and, in the process, enhance investor engagement and market transparency,” she said.
CSCS continues to lead the way in technological advancements, reinforcing its position as a pivotal player in the Nigerian capital market ecosystem.
This initiative underscores our dedication to enhancing market efficiency and empowering investors with the tools they need for informed decision-making.
The need to maximise local digital assets, amid dwindling Oil revenues and a struggling economy, has been reiterated by the Chief Executive Officer of Quomodo Systems Africa, Oluwole Asalu, who maintained this measure remains the path to prosperity.
Asalu, while addressing the press in Lagos, recently asserted that global shift towards digital economies, presents a pivotal opportunity for Nigeria at this time to mobilise sufficient resources towards effective governance.
He emphasised harnessing the burgeoning local digital economy to expedite national diversification goals, while break away from overdependence on oil output.
Asalu, boasted further that Nigeria’s tech-savvy, youthful population and increasing recognition from global tech giants already position its digital sector as a driver of inclusive growth and job creation.
“Nigeria’s overreliance on oil is no longer tenable. As global markets shift towards renewable energy, the urgency to diversify has never been greater. Technology stands out as the most promising avenue, not merely as a sector, but as an enabler of growth across all facets of the economy,” he explained.
According to him, Nigeria’s tech talent remains the new oil, a renewable resource with the potential for significant returns, if strategically harnessed.
Like India’s successes in information technology services, Asalu want Nigeria to tap into lucrative outsourcing industry to draw foreign investment.
“Foreign investment in Nigeria’s tech sector is rising. Programmes like Digital Explorers have led European firms such as Telesoft to establish operations in Nigeria. Tech giants like Microsoft and Facebook have followed suit, injecting capital and creating jobs,” he stated.
He again pointed to the emergence of three unicorns within Nigeria’s tech ecosystem as a breakthrough and sign of maturity.
“Nigeria’s tech ecosystem is already showing signs of maturity, with three unicorns emerging from its soil. These success stories, powered by local innovation, underscore the viability of a home-grown, world-class tech sector,” he affirmed.
He however emphasized urgent need to close existing gap in skills and infrastructure, in addition to embracing governance and collaboration to fully harness digital potential cum future.
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