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‘E-Commerce Boom Can’t Phase Out Traditional Stores’
An innovator, Mr Dayo Ayeni, yesterday said that traditional stores would remain relevant in spite of growth of e-commerce industry.
Ayeni, Chief Innovation Officer, BusinessPlus, said in Lagos that although e-commerce had made it easier for people to buy items from the comfort of their homes and offices, physical stores could not be phased out.
The chief innovation officer who spoke with newsmen, said that BusinessPlus is a digital business services agency.
Ayeni said that physical stores had the advantage of enabling buyers to feel items they would want to purchase.
“Even with the emergence of the e-commerce industry, thousands of consumers in Lagos, for example, still go to traditional stores at Isale-Eko, Computer Village and Balogun Market on a daily basis to purchase groceries, electronics and clothes, despite the stress involved.
“The fact remains that traditional stores allow consumers to interact with a range of products to make informed choices, aside from the advantage of being able to touch and see what they are buying.
“Online shopping is convenient in many ways, but that doesn’t mean it doesn’t have its disadvantages.
“For instance, delivery charges and time spent waiting for the product to arrive are not pleasant to many consumers,’’ he said.
Ayeni said that online shoppers were mostly corporate workers, who hardly had the time to go to physical stores to shop.
According to him, many consumers usually complain that items they ordered for online looked different when delivered.
He said that since all citizens were not educated and had access to the internet, the society would always need traditional stores.
“Shopping online requires the use of internet, and not all Nigerians have access to it, hence, the need for physical stores which accommodate both the literate and the illiterate.
“I am not to trying to rule out the fact that the e- commerce industry is making it big globally, but the truth is even most of the online stores now have physical stores as a front to sell their markets.
“The reality is that physical stores can never go into extinction, there will always be the need for them,’’ he said.
Reports say that according to the Global Consumer Insights Survey 2018 brick-and-mortar (physical) stores’ weekly shoppers grew by four per cent from 2016 to 2018, an indication that e-commerce cannot phase out physical stores.
The survey also found out that shopping is not just about convenience but also about experience, which, at the moment, only a physical store can offer.
Niesel Global Survey also shows that one of the biggest barriers to online shopping in Nigeria is inability of customers to inspect goods.
The survey says 78 per cent of Nigerian respondents believe the factor is a deterrent.
The Nigerian Inter-Bank Settlement System (NIBSS) says trust remains a major issue in online transactions as many Nigerians are in constant fear of online fraud and will do anything to avoid using their debit cards to process payments electronically.
According to data from NIBSS, year 2014 recorded 1,461 reported cases of electronic fraud, with actual losses grossing N6.216 billion.
In 2015, about 946 attempted e-fraud cases were also recorded by banks, other financial institutions and mobile payment operators, resulting in estimated N5 billion loss.
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter