Why Nigeria’s ecommerce company Efritin went bankrupt

Why Nigeria’s ecommerce company Efritin went bankrupt

According to developing news from Techpoint, it seems Efritin is shutting down operations.

This is not really news as most e-commerce companies in Nigeria are just bleeding cash with no viable business model in the midst of heavy recession which has affected people’s purchasing capacities.

Efritin is not closing shop because of  competition. Rather, it went bankrupt because Nigeria is not ready for e-commerce. Even Konga has lost more money than it made. Jumia is a shadow of itself. The problem cannot be fixed by marketing. This is a structural problem – without logistics and postal system, e-commerce, in Nigeria, has no long-term competitiveness capacity in a place where every street has a “shop”.

Until the Nigerian government invests in infrastructure like postal systems and transportation networks, few companies will come out of e-commerce profitably.

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