Nigeria - GIGL Eyes More Cross-Border Deliveries with UK Launch
GIG Logistics Expansion
GIG Logistics (GIGL), a giant Nigerian logistics, recently announced its expansion into the United Kingdom's Colchester, Essex. The business has now been officially integrated in the United Kingdom but plans to operate its logistics operation entirely online.
According to Ariyo Oluboye, GIGL's Director of Overseas Operations, the company intends to reduce Nigeria's trade barriers by facilitating cross-continental deliveries.
“Establishing a presence in the United Kingdom is consistent with our mission to establish an African brand that is a player in the global logistics market. Given that the majority of products entering Nigeria originate in the United Kingdom, it became clear that we needed an operational base there,” Oluboye says.
GIGL Cross-border Operations
GIGL has been operating in Nigeria, Texas, and Ghana's capital city of Accra long before.
According to Statista, the UK exported $1.67 billion to Nigeria in 2019. Mineral fuels and lubricants, estimated at $408 million, were among the most exported products from the UK to Nigeria.
Likewise, according to Statista, the UK imported $1.76 billion from Nigeria in 2019. When combined with the perceived rise in social and eCommerce due to the coronavirus, GIGL appears to be positioned to grab a share of an ostensibly massive market.
However, according to Statista, UK exports to Nigeria have decreased over the last eight years, dropping from $2.5 billion in 2012 to $1.67 billion in 2019. The coronavirus-induced restrictions on movement could result in a further decline in 2020.
US exports to Nigeria fell from $3.17 billion in 2019 to $2.7 billion in 2020 is instructive.
The Opportunity
The statistics cited above do not accurately depict the size of the demand open to GIGL. A telling statistic is how much of the UK's export to Nigeria comprises mineral fuels and lubricants — the regular trade practices of governments and multinational corporations.
Oluboye argues that transporting goods to Africa, especially last-mile deliveries, has been complicated, preventing smaller businesses and merchants from connecting with the rest of the world.
“We are offering these merchants pace, affordability, and a comprehensive route network that spans all of Nigeria's geopolitical zones. Both decentralized and centralized commerce can flourish only with efficient last-mile distribution, and this is an environment where our services have creative solutions,” he says.
GIGL recently announced a collaboration with a giant multinational payments Visa that could result in special rates for small businesses' logistics services. Also, it introduced a new subscription-based service that merchants can access via the GIGGo app.
In keeping with the push for cross-continental deliveries, Oluboye confirms that China, another major trading partner of Nigeria, may be the next logical destination for GIGL.
With COVID-19 affecting global internet culture, GIGL is betting big on transforming Africa's user preferences when it comes to eCommerce. How much has changed? Not much, if Jumia's financial results are any indication. However, it may be too early to say.
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