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Expert deplores low tech deployment in Nigeria’s $100b informal retail market

By Waliat Musa
31 March 2022   |   3:20 am
Chief Executive Officer (CEO) of Alerzo Limited, a technology and services platform, Adewale Opaleye, has lamented the slow pace of technology in Nigeria’s largely cash-based informal retail market.

Adewale Opaleye

Chief Executive Officer (CEO) of Alerzo Limited, a technology and services platform, Adewale Opaleye, has lamented the slow pace of technology in Nigeria’s largely cash-based informal retail market.

Noting that the development was hampering investment and the sector’s transition into e-commerce ventures in a chat with The Guardian, yesterday, Opaleye stated that the industry, put at over $100 billion, is mired by a myriad of challenges, including mass illiteracy among retailers, clustered market, supply versus demand concerns and retailers’ lack of or limited inventory knowledge.

Amid the woes, the CEO pointed to the investment opportunities for business-to-business (b2b) e-commerce firms to overcome situation.

He said: “Some b2b e-commerce platforms like Alerzo are seeing opportunities, and are creating digital products that make life easier for informal retailers. It is one market long overdue for tech-based solutions. The market holds enormous potential. However, there are several problems to solve to fully open up the sector.

“Looking at the market, it is cash-based and largely unregulated, leading to instability in prices. The role of several intermediaries also creates complexity. Likewise, business growth is affected by retailers’ lack of access to finance. Inadequate logistics facilities also take a toll on the supply chain. So these are issues we are addressing with technology, thus exposing retailers to modern business practices.”

The expert explained that fintech products by e-commerce platforms hold long-term positives for the informal market.

“For instance, retailers using Alerzopay build financial histories that could help them access funds for business expansion,” he added.

According to him, this holds overall financial inclusion benefits for the market, as several rural retailers, previously excluded from conventional banking, could be serviced digitally.

The Alerzo boss said e-commerce also benefits the sector by addressing the lack of business and management skills among informal retailers.

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