Jumia Nigeria launches new warehouse and logistics facility to improve supply chain

NIGERIA— E-commerce company Jumia Nigeria is set to improve its supply chain operations and capacity with the launch of a new integrated logistic network and warehousing facility in Isolo, Lagos. 

Jumia Nigeria described the launch as a ‘step forward’ in the company’s commitment to improve its logistics capabilities and consolidate its supply chain management in Nigeria.  

Sunil Natraj, Jumia Nigeria’s CEO, said, “The launch of our integrated warehouse marks a key moment for Jumia Nigeria. By consolidating our operations under one roof, we are streamlining our fulfillment processes and laying the groundwork for significant improvements in efficiency, scalability, and cost reduction.” 

“This will allow us to offer a wider product variety and, most importantly, deliver them to our consumers faster than ever before.” 

The move is part of the company’s optimization strategy to improve operational efficiency, customer experience and satisfaction.  

The launch comes barely a month after the e-commerce firm announced partnerships with finance and fintech companies Newedge (Eastbuy) and Credpal. The partnerships will help Jumia Nigeria provide Buy Now, Pay Later (BNPL) services which allow customers to make and spread payments over periods. The move is expected to expand Jumia Nigeria’s market reach, offering flexible payment facilities for low-income earners.  

“These partnerships align perfectly with our mission to make e-commerce more accessible and inclusive for all consumers. We remain committed to providing Nigerians with a broader range of payment options and fostering financial inclusion within the e-commerce space,” Natraj said. 

The new supply chain facility will complement these partnerships through more efficient order processing, stock taking, and other fundamental operational aspects of the company. 

Jumia Nigeria intends to use such strategies to capture market share in the growing e-commerce market. According to market analysis firm Mordor Intelligence, Nigeria’s e-commerce market is valued at US$8.53 billion. It is projected to grow at a compounded annual growth rate (CAGR) of 11.8% in the next five years. The market is projected to reach a US$14.9 billion valuation by 2029. 

Existing players like Zikel Cosmetics, Slot Systems Limited, Chrisvicmall, and Ajebomarket have also announced the implementation of similar strategies, such as acquisitions and partnerships, to improve their competitive advantage, reiterating the market’s attractiveness and potential. 

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