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Unlocking Growth in Nigerian Markets: The Case for Digitization and Inclusion

Nigeria’s e-commerce sector is on a steep upward trajectory, fueled by rising internet access, smartphone adoption, and a rapidly expanding base of digital consumers, projected to reach between $8.5 billion and $9.5 billion in 2025. This digital transformation presents vast opportunities for businesses across the nation.

“By 2026, 13% of all retail sales are expected to occur online. Nigeria’s e-commerce market is valued at $9.54 billion in 2025 and projected to reach $16.68 billion by 2030, driven by rising internet access and widespread smartphone use. This growth has intensified competition among both established and emerging e-commerce platforms, prompting businesses across sectors to leverage digital channels for greater growth and profitability”

Chikodi Okereocha, Assistant Editor, The Nation newspaper.

The Imperative of Digitization in Kano’s Markets

Kano State rises to the top of Nigerian’s commercial scene with a population of over 15,000,000 residents, an Internally Generated Revenue (IGR) of N141,735,000 (2023) and a plethora of commercial hubs spanning agriculture, handcrafted goods, rich textiles, and leather goods. Open-air markets in this region continue to drive wholesale and retail trade across the country and the West African subregion.

Despite the scale and significance of these open-air markets, the lack of technological adoption remains a major barrier, stunting the growth of these markets, which already serve as a home to thousands of daily transactions. Traders in these markets largely rely on operating offline, carrying out face-to-face negotiations, cash payments, and analog bookkeeping. In an era where AI and other emerging technologies are transforming the way Africans shop, this type of traditional market reveals both the untapped potential and the urgent need for inclusive digital transformative efforts targeting increase in market, competitive advantage and revenue for the vendors.

An open-air market vendor in Northern Nigeria

While digital platforms are increasingly available, the core barrier for many market vendors may not just be access; credibility, know-how and sustained relevance is also a concern that needs to be addressed. Barriers to adoption exist, not because of poor digital literacy or infrastructure gaps, but because vendors struggle to see how these tools integrate meaningfully into their daily business operations.

Beyond first-time use, the real challenge is retention: getting vendors not just to try a platform, but to trust it, return to it, and eventually rely on it. That requires more than utility, it requires alignment with existing behaviours, continuous value delivery, and systems that reflect the dynamic, relationship-driven nature of informal commerce. Without that, even the best solutions remain unused.

Two key theories to prove this include;

  • Psychology of Persuasion: This theory highlights how people are more convinced by tangible, concrete evidence of matters they can see and touch than abstract concepts. For vendors in these markets, especially those with lower technical ability, convincing them requires more than static screens. They have to experience the success of the process. As Cialdini’s psychology of persuasion reminds us, adoption is often driven by evidence of value and visible commitment. In informal markets, vendors are unlikely to embrace a digital tool unless they can experience its benefits firsthand. A working prototype, however minimal serves as a credibility marker, reducing perceived risk and signaling that the solution isn’t just aspirational, but actionable. It tells vendors, “This is for you. And it works.”
  • Theory of Adult Learning: This is the idea that adults are more driven by hands-on experiences than they are by theoretical knowledge. This means, for vendors in these markets, showing them the tangible and immediate value of what is being ‘sold’ to them births trust and brings about greater adoption and retention rates.

DODO’s HCD Approach: How we Uncover What Really Drives Behaviour in Traditional Markets

Clients often consult us, seeking to understand how Human-Centered Design (HCD) can be applied to increase both adoption and retention in a large, complex market system like this in Africa.

One of the frameworks we employ is a reframed journey mapping, designed not just to capture the journey, experiences, and challenges of the key players in these markets but also to identify critical areas of intervention where meaningful change can occur. This allows us to identify where and how digital solutions can be embedded into real workflows, behaviours, and decision-making moments.
Another framework we use for a context like this is the social behavioural tool which allows us to analyze the cognitive, environmental, and behavioural factors that determine how vendors and other stakeholders engage with new and existing solutions.

By grounding our interventions in these dynamics, we’re able to design strategies that are intuitive, build trust, and are more likely to be embraced and sustained over time.

A Market Too Big to Be Left Behind

Digitizing Kano’s large, traditional markets isn’t just a tech challenge, it’s a strategic imperative. These markets hold the key to unlocking grassroots growth, increasing internally generated revenue, and making Nigeria’s digital economy truly inclusive.

As we move toward a digitally connected future, we must ensure that the heart of Nigerian commerce is not left behind. With solutions stemming from winning methods such as human-centered design, adult learning theory, and behavioral psychology, there is a great opportunity to design a shift towards digitization adoption.

Author

  • Melvina Okechukwu is a skilled UX researcher and designer with a solid foundation in design and research, combined with exceptional strategic thinking, dedicated to creating products that align with user needs and business objectives.

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Nigeria’s e-commerce sector is on a steep upward trajectory, fueled by rising internet access, smartphone adoption, and a rapidly expanding base of digital consumers, projected to reach between $8.5 billion and $9.5 billion in 2025. This

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Melvina Okechukwu is a skilled UX researcher and designer with a solid foundation in design and research, combined with exceptional strategic thinking, dedicated to creating products that align with user needs and business objectives.

  • Melvina Okechukwu is a skilled UX researcher and designer with a solid foundation in design and research, combined with exceptional strategic thinking, dedicated to creating products that align with user needs and business objectives.