Jumia links Nigeria’s growth to macro reforms

Nigeria’s economy has often been framed in global investment circles through volatility, currency instability, inflationary pressure, supply chain disruptions and uncertainty around reform implementation.

However, at the Sohn Conference in New York, Chief Executive Officer of Jumia Group, Francis Dufay, offered a contrasting view, positioning Nigeria at the centre of reform, growth and longer-term stability, according to a statement from the firm on Tuesday.

Speaking during a panel on emerging markets, Dufay described the period between 2021 and 2024 as one of the most challenging economic cycles in recent memory for African markets, with Nigeria among the most affected. Sharp currency fluctuations, declining consumer purchasing power and elevated inflation created difficult operating conditions, particularly for import-dependent sectors such as logistics, payments and retail.

He noted that for businesses like Jumia, where pricing stability, inventory planning and payment predictability are essential, the volatility placed significant strain on operations.

However, Dufay said the pressure also triggered structural adjustments within the economy.

He argued that Nigeria’s ongoing reform programme, particularly under President Bola Tinubu, has begun to define a new macroeconomic cycle. According to him, measures such as exchange rate unification, fiscal adjustments and broader economic restructuring are gradually improving transparency and operational predictability for businesses.

“Nigeria was in a tough situation three or four years back,” he said, adding that recent policy shifts are laying the groundwork for greater economic stability. He noted that for e-commerce and digital platforms, improved stability translates into better pricing models, stronger supplier relationships, improved payment flows and renewed investor confidence.

Beyond monetary reforms, Dufay highlighted structural developments in Nigeria’s industrial base, pointing to the energy sector and the operational impact of the Dangote refinery as part of a broader economic repositioning. He said such infrastructure projects reflect Nigeria’s ambition to reduce import dependence and strengthen macroeconomic resilience.

For a country long reliant on imported fuel, he said, developments in domestic refining capacity signal progress toward greater self-sufficiency and reduced external vulnerability.

Dufay also underscored demographics as a key long-term growth driver. He noted that Nigeria remains one of the fastest-growing and youngest populations globally, adding that more babies were born in Nigeria last year than across all of Europe. According to him, this underscores the scale of future consumer demand across digital commerce, payments, logistics and essential services.

He observed that as Nigeria’s digital economy expands beyond major urban centres such as Lagos and Abuja into secondary cities and peri-urban markets, investor sentiment is increasingly shifting from short-term caution to long-term positioning.

While acknowledging that inflationary pressures and constrained household spending remain significant challenges, Dufay said the broader narrative is gradually moving from economic survival toward stabilisation and reform-led recalibration.

He concluded that Nigeria, Jumia’s largest and most strategic market, is becoming central to the company’s next phase of growth. As reforms deepen and macroeconomic conditions improve, he said the company sees clearer pathways to expansion, sustainability and long-term digital scale.