Telecom
COVID-19: E-commerce companies cry out under weight of restrictions by Govt security operatives
At a time when global players in the e-commerce sector have seen the peculiarities of their operations come to the fore in helping governments and people in other climes observe social distancing and stay in supply of essential items without leaving their homes, the Nigerian e-Commerce sector is instead buckling under the weight of heavy restrictions by state actors and law enforcement officials; leading to no end of frustrations for players in the sector.
E-commerce giants in other climes such as Amazon and Alibaba, for instance, have played important roles in the fight against COVID-19 in other parts of the world, working in concert with the government in helping people ensure social distancing through wholesome adoption of online and contact-less shopping.
However, investigations reveal a sorry tale of huge pains and frustrations among e-Commerce players in Nigeria, in stark contrast to what obtains elsewhere.
The likes of Konga and Jumia, two of the biggest operators in the Nigerian market have endured difficulties at the hands of government enforcement agents, despite being the best means of contact-less shopping that can help in curbing the spread of the virus.
Research shows that in a number of countries and even in Africa, e-Commerce players have been supported and encouraged by the government in the fight against COVID-19.
But here in Nigeria, the situation is different.
The Nigerian government and some state governors have not only failed in openly backing the operations of e-Commerce players as an essential ally in the COVID-19 crisis, but a situation where security operatives are frustrating the operations of e-commerce companies due to the ongoing lockdown and border closures has further worsened matters.
A source at Konga, who spoke on condition of anonymity provided some insights into the dire situation.
‘‘E-Commerce is a cost-intensive venture all over the world, one which relies on a number of very expensive applications which must be constantly paid for.
“Konga, for instance, is burning a lot of cash to keep the business going and employing thousands of Nigerians directly and indirectly.
“Yet, we are taking huge losses in meeting the commitments to our customers, many of whom rely on us for essential deliveries.
“Our merchants, who we also rely on in meeting the numerous online orders, cannot open their shops due to the lockdown.
“These merchants are individuals who have all being trained on essential safety procedures such as wearing masks, gloves and social distancing and, as such, pose little infection risk.
“In addition, we have to endure undue delays in the course of reaching the customers. For instance, a truck making essential intra-state deliveries is often delayed for a minimum of six days, thereby causing huge pains for the company and consumers,’’ he lamented.
‘‘Even when granted exemption letters, the situation on the streets is far from ideal. We have encountered severe delays and huge frustration as a result of the overzealous actions of some security operatives who sometimes refuse to grant access to delivery personnel or in other cases, even turn them back. The government needs to do something about this.’’
Also, feedback from sources at Jumia, who pleaded not to be named, paints a picture of frustrations.
‘‘In virtually every other country, e-Commerce is being deployed as a critical weapon in the fight against COVID-19. Consumers are encouraged to go online and leverage e-Commerce for contact-less shopping by staying at home and receiving their essential deliveries including groceries at their doorsteps.
“Shoppers can also pay via e-channels which obliterates the use of cash or POS. But in Nigeria, we have hardly seen any form of institutional support in this regard.
‘‘In fact, we have seen a situation where delivery is constantly being hampered by the harassment of our riders, vendors and delivery men on a daily basis.
“This happens to both intra-state and inter-state deliveries. As a result, deliveries that should take 24 hours due to the absence of traffic on the roads now stretch for days or don’t even happen at all in some cases.
“Also, our staff, who actually are essential service providers, equally face serious difficulties and in some cases, harassments by security operatives on their way to and from work.
Continuing, the source stated: ‘‘Government has a critical role to play in nipping this worrisome situation in the bud as the operations of most e-commerce companies are suffering.
‘Worse still, when consumers encounter undue delays for an item ordered online, they would naturally turn to offline markets, thereby worsening the risk of community transmission of the virus.’’
Indeed, with the emergence of the COVID-19 pandemic which broke out in Wuhan, China but which has since spread across the globe, virtually every country has had their national life and normal economic activities disrupted.
Subsequently, a number of measures have come into force in helping curb not only the spread of the dreaded virus, but also halt community transmission, which has been identified as one of the most worrisome aspects of the war against COVID-19.
Specifically, there is an emphasis on behavioural changes, with social distancing and improved personal hygiene emerging as essential guides.
Furthermore, restrictions have been placed on areas of high human concentration such as airports, schools, religious gatherings and most importantly, markets.
Consequently, e-Commerce has emerged as a ready-made channel for helping people carry out contact-less shopping, observing social distancing and the important call to stay at home, while also coping seamlessly with the shut-down of offline markets.
As a matter of fact, evidence abounds of how e-commerce has been leveraged to great effect in other climes and even in other African countries in the face of the COVID-19 pandemic.
In Germany and New Zealand, two of the countries that have made the most progress with respect to curbing the COVID-19 pandemic, e-Commerce has been one of the secrets.
Even in other African countries such as Morocco, Ghana, Uganda – where citizens were advised in a government communique to opt for online shopping options as a means of getting essential items delivered to homes – and in Ghana – where e-Commerce was given special status and Ghanaians urged to rely more on digital channels for the delivery of food and other essentials; the situation is different.
In fact, same special deployment of e-Commerce in aiding the citizenry observe the essential regulations of social distancing and reducing unnecessary contact in crowded markets has been identified in China, Spain, France, the United Arab Emirates, among others.
However, in Nigeria, the situation is almost the opposite.
A number of Nigerians, left with little choice due to afore-mentioned challenges encountered by e-Commerce players, are increasingly relying on open-air markets – which manage to escape the subsisting ban – to shop for their essentials.
Perhaps unsurprisingly, the country is currently battling to stop ongoing community transmission of COVID-19 as confirmed cases continue to rise by the day. Going by recent figures released on Saturday by the country’s disease-fighting agency, the Nigeria Centre for Disease Control (NCDC), Nigeria has recorded 1182 cases of COVID-19; with Lagos in particular, accounting for nearly 60 per cent of the cases.
Yet, e-Commerce companies, which have the capability to reach the last mile with essential deliveries, are not given free rein to operate.
Further buttressing the points raised above, the source at Konga called on the government to take action.
‘‘We expect the government and the authorities to act. E-Commerce companies in Nigeria can play a key role in the fight against COVID-19, as can be seen from the examples in other countries.
“The Nigerian government should provide more institutional support and some form of public backing for this budding sector as this would go a long way in not only encouraging more Nigerians to embrace the needed behavioural change central to the COVID-19 fight but would also ensure less hassles from other state actors on the highways,’’ he concluded.
Nigeria is currently battling hard to rein in the rampaging COVID-19 pandemic.
While there has been no formal restriction of e-commerce players, the government has equally stopped short of any form of official public pronouncement or declaration to ensure that the services of e-Commerce companies are protected and not disrupted by security agencies enforcing the lock-down.
In addition, the government has failed in toeing the path of other countries in leveraging e-commerce to great advantage in helping Nigerians stay in supply of essential products while complying with the lockdown.
Competition and Consumer Protection Tribunal has upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) on Meta Platforms Inc. and WhatsApp LLC for data privacy violations in Nigeria.
The Tribunal also awarded $35,000 in investigative costs to the country’s Federal Competition and Consumer Protection Commission .
In a statement issued by the FCCPC, the Tribunal delivered its judgment in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and ruling in favour of its actions on nearly all contested issues.
According to the statement by the FCCPC, “The Tribunal specifically determined that the Commission adhered to prevailing laws, fulfilled its mandate, and exercised its powers by the 1999 Constitution (as amended).
“It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.”
The statement revealed that WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN), while the FCCPC was represented by Babatunde Irukera.
It added that both legal teams presented their final arguments on behalf of their respective clients on January 28, 2025.
“The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers, the investigation started in 2020.
“The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.
“Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission,” FCCPC said.
The Tribunal upheld the FCCPC’s authority and investigative procedures in Meta and WhatsApp’s appeal, resolving most of the contested issues in the Commission’s favour.
It confirmed that the FCCPC acted within its constitutional and statutory mandate, particularly regarding fair hearing, data protection, and consumer rights.
While it dismissed the majority of the appellants’ objections, it set aside one specific order (Order 7) for lacking sufficient legal basis.
While expressing satisfaction with the judgment, Tunji Bello, executive vice chairman/CEO, commended the Commission’s legal team for their exceptional diligence and forensic expertise in assembling evidence and presenting their case.
He reaffirmed the FCCPC’s unwavering commitment not only to protecting the rights of Nigerian consumers but also to promoting fair business practices in line with the FCCPA (2018) and the Renewed Hope Agenda of the Nigerian government.
Nigerian Exchange Limited (NGX), has made history with the listing of Legend Internet Service Plc as the first company in its Telecoms sector and the first company to be listed this year.
Legend’s N2 billion ordinary shares, with a par value of 50 kobo each, were listed at N5.64 per share.
Dr Umaru Kwairanga, chairman of NGX Group, who welcomed Legend’s board and management, commended the company for its successful listing on the Exchange
He highlighted that listing signifies an elevated commitment to corporate governance and provides opportunities to leverage the Exchange’s diverse asset classes for capital raising.
He stated, “As we celebrate this listing, with many more in the pipeline, I commend the management of Legend Internet Plc for this remarkable milestone.
“This bold step demonstrates confidence in your business model and growth vision.
It also marks the formal emergence of a broadband service as a distinct sub-sector on our Exchange.
Legend has evolved from a focused digital network provider to a diversified technology player, achieving significant advancements in broadband infrastructure development and data services.
We anticipate continued growth in the future.
“We are still bringing many companies on board the NGX, including Dangote, NNPC and others.
“As Africa’s leading exchange, NGX has consistently championed innovation, transparency and sustainable value creation through our investment in cutting-edge infrastructure and a comprehensive range of product offerings, spanning equities, bonds, ETFs and derivatives
Speaking at the Facts Behind the Listing Ceremony, Dr Ladi Bada, chairman, Legend emphasised that the company, as the first indigenous telecommunications company on NGX, has substantial value to offer the market.
Bada encouraged Nigerians to embrace the broadband industry, recognizing it as the fastest-growing sector globally.
He noted that the company had been instrumental in laying fiber optic cables connecting 250 homes in the Suleja and Abuja environs.
He expressed optimism that the Exchange would serve as a catalyst to replicate such commendable projects across other regions of Nigeria.
“We are here to create an enabling digital infrastructure to achieve the projected one-trillion dollar economy.
“On this special day, Legend Internet takes a bold step forward, not just for itself, but for the broader ecosystem of technology, infrastructure, and enterprise in Nigeria.
“As we begin this exciting new chapter as a publicly listed company, we do so with humility and boldness.
We remain committed to continuous innovation, expanding our reach, and delivering value to shareholders and society
“A listing on the Nigerian Exchange is more than a financial event. It is a signal and a declaration that a business is ready to be held to the highest standards of governance, performance, and public trust,” he said
Providing insights into the company’s development, Ms Aisha Abdulaziz, chief executive officer of Legend Internet Plc, stated that the company had evolved from an internet service provider to a comprehensive digital service provider.
Abdulaziz noted that with broadband penetration in Nigeria being less than one per cent, Legend Internet was strategically positioned to deepen access
She affirmed the company’s commitment to taking Nigeria’s digital economy to the next level
“When we started Legend, we weren’t just building an internet company; we were building a movement
A movement fueled by the belief that every Nigerian deserves access to premium, reliable, and high-speed internet, regardless of their location or occupation
“From late nights in our first office to laying fiber across Abuja, to launching products that made people’s lives easier and faster, our journey has always been about connections
“Connecting people to opportunities, connecting homes to entertainment, connecting Nigeria to the digital future it deserves. Our journey has always been about a better way to live.
“This listing is a symbol of our commitment to transparency, sustainable growth, and the kind of excellence that outlives hype.
“Legend’s primary focus now is on unlocking digital value at the household level,” she said.
Mr Jude Chiemeka, chief executive officer of NGX, congratulated the company for making the strategic decision to list.
Mr Chiemeka noted that Legend’s listing on NGX now brings the total number of listed securities to 322
Also, Mr Temi Popoola, chief executive officer of the Nigerian Exchange Group, encouraged the investing public to support the newly listed company.
Digital Realty, the leading global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today the expansion of its interconnection platform, ServiceFabric®, to Nigeria.
The platform will be natively deployed at Digital Realty’s LOS1 and LOS2 facilities in Lagos, ensuring low-latency, high-performance connectivity for enterprises in the region and beyond.
This strategic expansion reinforces Digital Realty’s commitment to enabling seamless global interconnectivity for businesses, providing enterprise customers in Nigeria with the ability to connect whenever, wherever, and to whoever they need to.
The presence of ServiceFabric® in Lagos will support the growing demand for hybrid IT and multi-cloud connectivity, empowering businesses with a secure, software-defined interconnection platform.
As part of Digital Realty’s broader vision to support digital transformation across Africa, this deployment is a significant step in an ongoing ServiceFabric® expansion across the continent. Future rollouts are planned to bring additional access points across Africa, enabling enterprises to interconnect with partners, clouds, and networks seamlessly.
The timing of this deployment aligns with a surge in digital activity across Africa. The continent’s digital transformation market is projected to grow from approximately USD 23 billion in 2024 to USD 46 billion by 2029, at a compound annual growth rate (CAGR) of 15% , underscoring the accelerating demand for advanced connectivity solutions.
In Nigeria specifically, national initiatives such as the 3 Million Technical Talent (3MTT) program and the Broadband Alliance reflect strong government support for enhancing digital skills and infrastructure – further highlighting the country’s critical role in Africa’s digital future.
“The launch of ServiceFabric® in Nigeria marks a significant milestone in our mission to build a truly globally connected digital economy,” said Chris Sharp, Chief Technology Officer, Digital Realty. “By deploying ServiceFabric® natively in our Lagos facilities, we are ensuring businesses in Nigeria have access to the same best-in-class interconnection capabilities as enterprises in major digital hubs around the world.”
Explaining further, Engineer Ikechukwu Nnamani, Managing Director, Digital Realty Nigeria, stated the launch of ServiceFabric® in Nigeria is a direct response to the call by the Federal Government towards availability of global infrastructure in the country thereby enhancing localization of content and bringing global platforms into the Nigerian ICT ecosystem.
By a direct connectivity into the Internet Exchange Point of Nigeria (IXPN), the IXPN will be able to peer with other global exchanges thereby enhancing the quality of service delivery to Nigerian companies and service providers.
ServiceFabric® is already available natively in more than 160 Digital Realty facilities and over 500 third-party facilities through strategic partnerships, including with Megaport and the recent collaboration with Console Connect. These partnerships help extend the reach of the platform, providing enterprises with a truly global, interconnected ecosystem.
ServiceFabric® is a next-generation interconnection solution designed to simplify and streamline connectivity between enterprises, cloud providers, and network partners. With integration points to Digital Realty’s Private AI Exchange (AIPx), it also paves the way for secure and efficient AI workload connectivity, further future-proofing enterprise infrastructure.
Key benefits include:
- Seamless multi-cloud connectivity – direct, secure access to major cloud providers with access to more than 280 cloud on-ramps globally, ensuring optimized performance and security.
- Global reach, local performance – enterprises in Nigeria can connect with business partners and digital services across PlatformDIGITAL®, Digital Realty’s global data center platform consisting of 300+ facilities across 50+ cities in 25+ countries.
- Scalability & flexibility – businesses can scale their interconnection needs on demand, adapting to changing IT and network requirements.
- Enhanced security & reliability – a private, software-defined platform that reduces exposure to public internet risks and improves network resiliency.
Tribunal Upholds FCCPC’s $220m Fine against Meta, WhatsApp
Legend Internet Plc Makes History as First Indigenous Telecom Firm on NGX
Digital Realty Expands ServiceFabric to Nigeria, Enhancing Global Interconnectivity
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