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COVID-19: E-commerce companies cry out under weight of restrictions by Govt security operatives

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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.

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Airtel Africa Extends $100M Share Buyback Plan

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Airtel Africa has extended its $100 million share buyback programme, first launched in December 2024, in partnership with Barclays Capital Securities Limited. The scheme, aimed at improving shareholder returns, has so far returned $34.7 million through the repurchase of 14.2 million shares, with $20.3 million still to be acquired.

The initiative, now running until March 2026, follows the completion of an initial $50 million phase in April 2025 and currently includes a $55 million tranche.

The telecommunications group, listed on the Nigerian Exchange (NGX), is operating within regulations that restrict share buybacks to 15 percent of issued shares over two years. All repurchased shares will be cancelled, reducing the company’s share capital and potentially increasing earnings per share (EPS).

The buyback follows a strong performance in the first quarter of 2025, when Airtel Africa reported a 16-fold increase in EPS to 3.4 cents, supported by higher operating profits and lower foreign exchange losses. The company also raised capital expenditure by 27 percent, investing $737 million in 2024 to expand infrastructure and secure spectrum across its markets.

The extension of the scheme, according to Airtel Africa, also reflects its intention to provide consistent shareholder value while maintaining investment in its network. The partnership with Barclays ensures compliance with regulations during closed trading periods and seeks to limit market disruption.

Airtel Africa has in recent years considered a separate listing of its mobile money business but postponed the initial public offering in 2025, choosing instead to direct capital into shareholder-focused measures such as the buyback.

Industry observers point out that buybacks may improve financial ratios by reducing outstanding shares, but they can also indicate fewer reinvestment options. Airtel Africa has argued that its programme complements long-term growth priorities, pointing to a 29.5 percent increase in mobile money revenue and a 24 percent rise in its customer base.

The company continues to weigh shareholder rewards alongside reinvestment, citing foreign exchange volatility and other economic pressures in its largest market, Nigeria.


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Stakeholders Chart Strategic Path for MVNOs in Nigeria

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A decisive call for collaboration, strategic market positioning, and patient capital has been issued by key players in Nigeria’s telecommunications sector to unlock the dormant potential of Mobile Virtual Network Operators (MVNOs).

The resolution emerged from the sixth edition of the Telecoms Sector Sustainability Forum (TSSF) organised by Business Remarks at Ikeja, Lagos State, where stakeholders convened under the theme: Unlocking Nigeria’s MVNO Potential: Status, Trends, Investment, and Future Prospects.

The forum, which brought together major mobile network operators (MNOs), the Nigerian Communications Commission (NCC), and licensed MVNOs, served as a candid platform to diagnose the critical challenges stifling the growth of the MVNO sub-sector. The forum stressed that the sustainability of MVNOs in Nigeria is a collective responsibility. It called for unwavering collaboration between MNOs, the NCC, and the MVNOs to replicate the success stories seen in other nations, ultimately fostering a more diverse, competitive, and inclusive telecommunications market for all Nigerians.

In his keynote address, the Executive Vice Chairman of the Nigerian Communication Commission, NCC, Dr. Aminu Maida said the entrance of MVNOs is expected to provide competitive niche offerings as well as enhance digital communications ecosystem in Nigeria for the benefit of the subscribers and the Nigerian economy.

Ably represented by the Director of Licensing and Authorisation, Mr Usman Mamman, NCC noted that there are now over 1000 MVNOs globally, with more than 500 operating in Europe alone and 46 MVNO Licenses were issued in Nigeria by the regulator in the year 2023.

Addressing stakeholders, Maida stated that the Commission is not oblivion to the challenges faced by MVNOs in Nigeria, particularly in relation to commercial negotiations. He therefore pledged that NCC is working assiduously with Mobile Network Operators (MNOs) to improve network capacity.

Furthermore, NCC’s EVC encouraged MNOs to partner with MVNOs to target new verticals, drive margin growth as well as to monetize spare capacity, while urging MVNOs players to recognise the viability of the Nigerian market, invest boldly, and position themselves to reap the long-term benefits of their investments.

In his speech, the President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr Tony Izuagbe Emoekpere, dissuaded MVNO Licensees from blindly adopting foreign MVNOs model for Nigerian local market and consumers. He urged players to conduct diligent market analysis and focus on service differentiation through specialized offerings. “MVNOs need to carve a unique niche specially designed for the Nigerian market,” Emoekpere said.

Speaking on this, the co-founder and executive director, Infratel Africa, Dr Tola Yusuf, stressed that MVNOs in Nigeria’s market must adopt a more strategic approach to succeed in rural and underserved areas. Categorically noting that there are immense potential in connecting these rural communities, Yusuf argued that MVNOs often focus on urban, high-density areas like Lagos, neglecting the vast majority of the population, estimated at over 25 million people who remain completely unconnected.

“The true winners in the MVNO space will be those who develop a clear strategy to serve these markets, even if it requires significant logistical effort, such as using horses or boats to reach remote communities,” he said. He also suggested that the current market might see future mergers and acquisitions, with some license holders potentially selling their licenses as they fail to compete effectively.

Citing examples of banks with MVNOs licenses in other climes, NCC’s Director of Licensing and Authorisation, Mr Usman Mamman during the panel session draws attention to how financial institutions have successfully entered the telecom space by understanding its customers’ needs and tailoring holistic lifestyle services accordingly.

While addressing the need to focus on providing niche services to specific customer groups, Mamman noted that unlike large mobile network operators, MVNOs are expected to be digital-first and flexible, which enables them to be innovative and quickly capitalize on underserved market segments.

On his part, the Director USK Mobile, Dr Chidi Ajuzie, called attention to the capacity constraints by the host MNOs and the revenue- sharing model that can limit profitability. Ajuzie

According to him, “Tier 5 MVNOs are expected to build their own core infrastructure and billing systems (BSS/OSS), but they still rely on the MNO’s radio access network. This creates a bottleneck. Even if a Tier 5 MVNO has excellent billing systems, it can’t offer unlimited data or guaranteed high speeds if the MNO’s network is already at capacity,” he stated.

Ajuzie, however, said some higher-tier are now looking for innovative ways to go beyond the constraint by securing acquiring additional licenses, such as Internet Service Provider (ISP) or Public Licence (PL) licenses.

He also emphasized the
need for a significant expansion of the existing infrastructure, particularly by MVNOs who are now integrating their own fixed infrastructure, such as fiber networks. This expansion, he says, is the only way to “expand the pipe” and create a truly competitive and viable market for all players.

Also speaking ipNX Director of Startegic Business Initiative, Mr Olusola Teniola argued that the nation’s 40,000 telecom towers are grossly insufficient for a population of over 200 million, especially when compared to the United Kingdom’s 75,000 towers for a much smaller population. He stated that unlike developed nations where public funds initially built a robust telecom backbone, Nigeria’s infrastructure was financed by a few dominant mobile network operators (MNOs) who have invested billions.

Teniola posited that the lack of widespread infrastructure, particularly outside major cities like Lagos, Abuja, and Port Harcourt, presents a major challenge for new MVNOs, which were intended to serve the millions of unconnected Nigerians, particularly in rural areas. He also warned that without substantial new investment to expand the network, the MVNO business model will struggle to succeed, with only those that can survive a long-term, 7-to-10-year investment cycle likely to see a return on their capital.

In her welcome address, the Convener who also doubles as the Managing Editor of Business Remarks, Bukola Olanrewaju, said the Nigerian telecom market is growing at an incredible pace and the level of success recorded in each country with MVNOs is largely dependent on the regulatory enforcement and interventions, wholesale agreement, spectrum access, and on how effectively MVNOs players can navigate these hurdles.

“To succeed, Nigeria must collectively build an ecosystem that is both competitive and sustainable,” Olanrewaju remarked as she brought into focus MVNOs operations in South Africa, Thailand and Argentina.

The forum, TSSF 6.0, stressed that the sustainability of MVNOs in Nigeria is a collective responsibility. It called for unwavering collaboration between MNOs, the NCC, and the MVNOs themselves to replicate the success stories seen in other nations, ultimately fostering a more diverse, competitive, and inclusive telecommunications market for all Nigerians.


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Airtel AI Blocks 84 Percent of Spam SMS in Nigeria

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Nigeria has recorded an 84 Percent  decline in spam SMS after Airtel Africa deployed its Artificial Intelligence-powered spam detection tool, Spam Alert.

Airtel AI Blocks 84 Percent of Spam SMS in Nigeria

According to Airtel, the free service has flagged over 205 million fraudulent and unsolicited messages across 13 African markets within six months.

Nigeria registered the sharpest decline, while Kenya recorded the highest flagged spam volume with 68 million messages, followed by Tanzania with 47 million and Zambia with 33 million.

Spam Alert prefixes suspicious SMS with “SPAM Alert,” providing users with real-time protection against phishing scams and nuisance texts without requiring extra applications.

Sunil Taldar, CEO, Airtel Africa, said the solution demonstrates the company’s commitment to tackling digital fraud as smartphone penetration expands across Africa.

Currently active in 13 of Airtel’s 14 markets, including Nigeria, Uganda, Zambia, and Tanzania, the service has cut overall spam SMS by 12% across the continent. Seychelles will join soon, Airtel confirmed.

In Nigeria, Airtel reported that between March 13 and May 20, 2025, the system intercepted more than 9.6 million suspicious messages, of which over 9.1 million originated from off-network sources. T

he AI-powered system scans all SMS in real-time using 250 parameters, including sender identity, link structure, and regional anomalies, processing each message in under two milliseconds without storing content.

The Nigerian Communications Commission (NCC) welcomed the innovation.

Dr. Aminu Maida, executive vice chairman, said the initiative strengthens consumer protection at a time when spam and fraud are growing more sophisticated. He stressed the need for more collaboration between operators and regulators to reduce digital risks.

The NCC’s 2023 Industry Risk Report had ranked phishing and bulk unsolicited messaging among the top threats facing subscribers, especially in rural areas and among first-time smartphone users.

Airtel’s initiative is expected to ease these concerns by reinforcing trust in mobile communications.

 

 


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