Jumia pushes beyond cities as Nigeria’s e-Commerce demand shifts inland

Jumia Nigeria is expanding its logistics network deeper into Nigeria’s hinterland, betting that future growth in online retail will come from underserved regions rather than major cities.

The company said its first-quarter 2026 rollout added new pickup stations and delivery infrastructure across northern states including Kebbi State, Sokoto State and Kaduna State, while also strengthening its presence in cities such as Zaria. The move marks a strategic pivot toward “upcountry” expansion as demand rises outside traditional urban hubs.

“We are seeing a structural shift in where demand is coming from. By extending our network deeper into the country, we are unlocking new demand and enabling more sellers to participate in the digital economy,” Temidayo Ojo, the chief executive officer said.

The expansion comes as Nigeria’s e-commerce sector grapples with logistics bottlenecks, limited infrastructure and uneven internet access beyond major cities. While urban centres such as Lagos, Ibadan, Abuja and Port Harcourt remain core markets, growth rates are increasingly slowing compared with emerging regions where penetration is still low.

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Jumia said it is increasing the density of pickup stations in these established cities while integrating new locations into its national logistics grid. The company is also investing in parcel distribution centres to decentralise inventory, cut delivery times and reduce operating costs, an approach aimed at improving margins in a market known for thin profitability.

The strategy reflects a broader industry trend: scaling beyond capital-intensive, last-mile delivery models concentrated in cities toward more distributed networks that rely on local partners. Jumia has expanded its pool of third-party logistics providers and JForce agents, creating income opportunities while improving delivery reach.

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For investors, the shift signals a longer-term play on market expansion rather than short-term profitability. Serving remote areas comes with higher upfront costs, but it also opens access to millions of first-time online shoppers and small merchants previously excluded from digital commerce.

Jumia plans to extend the rollout into Nigeria’s southern regions, including the South-East and South-South, ahead of the peak retail season. The company is positioning itself to capture nationwide demand as Africa’s most populous country gradually builds out the infrastructure needed to support large-scale e-commerce.

The bet is that Nigeria’s next wave of online retail growth may not come from its biggest cities, but from the vast, underserved markets beyond them.