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Online Firm Posts 42% Growth In Goods Gross Merchandise Value

Olushola Bello by Olushola Bello
3 weeks ago
in News
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Jumia Nigeria emerged as one of the company’s strongest-performing markets in the first quarter (Q1) 2026, recording a 42 per cent year-on-year increase in physical goods Gross Merchandise Value.
This strong performance underscores Nigeria’s position as one of Jumia’s most successful markets during this period.
Speaking on the performance, CEO of Jumia Nigeria, Temidayo Ojo, stated, “Nigeria continues to showcase the strength and resilience of its digital commerce ecosystem. The growth we experienced in Q1 reflects a notable increase in consumer confidence, enhanced engagement across our platform, and our ongoing commitment to investing in technology, logistics, and customer experience.”
The company attributed its upward trajectory to disciplined execution and operational efficiency, emphasising the impact of advanced technology and AI-driven systems throughout its operations. Jumia has effectively leveraged artificial intelligence and automation within various departments, including finance, customer support, cybersecurity, seller management, and logistics, to boost service quality while simultaneously lowering operational costs.
The company reported a year-on-year decline in technology and content expenses, thanks to strategic headcount optimisation and cost savings from renegotiated contracts.
Jumia highlighted the enhanced use of AI tools among its technology teams and automation within call centres and operational systems as pivotal steps in scaling sustainably and improving efficiency across African markets.
Jumia also noted significant progress in customer retention and marketplace engagement. The number of Quarterly Active Customers reached an impressive 2.5 million, while physical goods orders rose to 5.9 million in Q1 2026. Notably, the expansion of Jumia’s reach now sees 62 per cent of total orders coming from secondary cities and rural areas, reflecting the growing penetration of digital commerce throughout Africa.
Despite challenges posed by the global economic landscape, including rising costs of memory chips and CPUs and supply chain disruptions linked to ongoing tensions in the Middle East, Jumia remains steadfast in its journey toward profitability.
The company is on track to achieve adjusted EBITDA breakeven and positive cash flow by the end of y Q4 2026, with a strong target for full-year profitability in 2027.

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Olushola Bello

Olushola Bello

Olushola Bello is a Senior Journalist at Leadership Newspaper, reporting on Nigeria's capital market, industry sectors, and broader economic issues. She is known for high-impact stories and in-depth analysis on business developments and financial markets, underpinned by strong editorial judgement and a commitment to accuracy and fairness.

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