Recession makes Nigeria cheaper for doing business – Jumia Travels boss

The Chief Executive Officer of Jumia Travels, Mr. Paul Midy, has said that the ongoing recession and falling value of the naira has made Nigeria a cheaper place to do business.

He disclosed this while on a three-day working visit to Jumia Travels, Nigeria office.

He said, “The fall in the value of naira makes it cheaper for people who want to trade with Nigeria and for businessmen and women to travel through Nigeria to other destinations both in Africa and beyond.”

Midy disclosed that in spite of the difficult operating environment occasioned by the recession and rising inflation, this was where the strength of Jumia Group lay. “We know that many foreign firms are withdrawing from Nigeria but we are instead increasing our investment because Nigeria is our core market and with the depreciating value of the naira, goods from this part of Africa have become very cheap for our customers in other parts of Africa.

“We see recession as a short term and mid-term situation but in the long term, Nigeria is still the strongest market with 200 million people.”

He added also that the harsh economy spurred Nigerians to look for better deals which they could get online. “Our prices have not been increased but have instead been reduced and so people have come to realise that using Jumia is cheaper and more efficient than using offline travelling agencies.

We are still trying to convince Nigerians that e-commerce is better and cheaper than offline bookings. Globally, more than 50 per cent travels are booked online but in Nigeria, online booking accounts for less than five per cent. The opportunity for us lies between the 50 and five per cent.”