Temu Retreats in Nigeria as Domestic Logistics Surpass International Competitors

Temu Encounters Obstacles in Nigeria's E-Commerce Market

Temu, a rapidly expanding online marketplace, is facing significant hurdles in Nigeria as established local companies continue to dominate thanks to their advanced logistics systems and strong consumer trust. The difficulties experienced by global platforms like Temu highlight the intricate challenges of growing in African markets, where fragmented customs procedures and underdeveloped last-mile delivery networks present major obstacles.

According to Jumia Technologies AG’s Q3 2025 earnings report, these issues have led non-local platforms such as Shein and Temu to scale back their operations, citing unsustainable expenses and operational difficulties as primary reasons for their withdrawal.

Local Expertise Gives Jumia an Edge

Jumia’s CEO, Francis Dufay, pointed out that Nigeria’s market poses unique challenges, including unpredictable customs clearance that can delay shipments for extended periods and a lack of comprehensive logistics infrastructure. Dufay emphasized that foreign platforms struggle in this environment, stating, “These platforms need reliable customs, which we mostly don't have in our markets.” In contrast, local logistics partners like Jumia are better equipped to handle these complexities.

Jumia’s own delivery network enables it to address consumer concerns about online shopping and provide prompt deliveries—an essential advantage in a country where e-commerce is still gaining traction.

International Rivals Retreat Amid High Costs

The report also noted that foreign competitors are cutting back on marketing and increasing prices in Nigeria, signaling a move away from aggressive growth. Dufay attributed this to the high costs associated with scaling in Nigeria, where international platforms must depend on smaller, less capable third-party logistics providers. “They're stuck working with smaller 3PLs at much higher costs, with much more limited country coverage,” he explained.

This situation has given local companies a distinct advantage, allowing them to offer quicker deliveries and more attentive customer service—crucial factors for building trust in a market where digital transactions are still met with skepticism.

Strategic Partnerships Are Key for Foreign Platforms

For Temu and other international players, Nigeria’s market highlights the necessity of forming strong partnerships with local logistics firms. While Temu has not announced any specific collaborations, Jumia’s analysis suggests that without deep integration into Nigeria’s delivery networks, foreign e-commerce companies risk falling behind their local counterparts.

The lack of a dependable delivery system not only slows down order fulfillment but also erodes consumer trust, which is vital in markets where confidence in digital commerce is still developing.

Broader Implications Across Africa

Nigeria’s situation mirrors trends seen throughout Africa, where international e-commerce platforms face similar operational challenges. Jumia’s success in adapting its services to local needs—such as offering flexible payment methods and tailored customer support—has helped it retain a leading position despite growing competition. For Temu and other newcomers, achieving success may require more than just competitive pricing; it may also demand forging alliances with established local logistics networks and investing in infrastructure that meets Africa’s specific market requirements.