Temu Retreats in Nigeria as Local Logistics Outpace Foreign Giants

Temu, the fast-growing e-commerce platform, faces mounting challenges in Nigeria's market as local players leverage superior logistics infrastructure and customer trust to maintain dominance. The struggle of international platforms like Temu underscores the complexities of scaling operations in African markets, where fragmented customs systems and limited last-mile delivery networks create significant barriers. Jumia Technologies AG highlighted these challenges in its Q3 2025 earnings report, noting that non-resident platforms such as Shein and Temu are retreating due to unsustainable cost structures and operational hurdles.

Francis Dufay, Jumia's CEO, explained that the Nigerian market's unique demands-including unreliable customs clearance processes, which can delay shipments by weeks or months, and the absence of a robust logistics ecosystem-make it difficult for foreign platforms to compete. "These platforms need reliable customs, which we mostly don't have in our markets," Dufay stated, emphasizing that local logistics partners like Jumia can navigate these challenges more effectively. Jumia's own infrastructure allows it to address consumer skepticism about online transactions and ensure timely deliveries, a critical factor in a market where e-commerce adoption is still evolving.

The report also revealed that international competitors are reducing marketing investments and raising price points in Nigeria, signaling a retreat from aggressive expansion strategies. Dufay attributed this shift to the high costs of scaling in a market where foreign platforms must rely on smaller third-party logistics providers, which lack the scale and coverage of Jumia's operations. "They're stuck working with smaller 3PLs at much higher costs, with much more limited country coverage," he noted. This dynamic has created a competitive advantage for local players, who can offer faster delivery times and more responsive customer service-key drivers of trust in a region where digital transactions remain fraught with uncertainty.

. For Temu and other international platforms, the Nigerian market's challenges highlight the importance of strategic partnerships with local logistics providers. While the platform has not publicly disclosed specific collaborations, Jumia's analysis suggests that without deep integration into Nigeria's logistics networks, international e-commerce players risk being outpaced by homegrown competitors. The absence of a reliable delivery infrastructure not only delays order fulfillment but also undermines consumer confidence, a critical barrier to adoption in markets where digital trust is still being built.

The situation in Nigeria reflects broader trends across Africa, where foreign e-commerce platforms face similar hurdles in scaling operations. Jumia's ability to adapt its business model to local needs-such as offering flexible payment options and localized customer support-has allowed it to maintain a leading position despite increased competition. For Temu and other entrants, the path to success may require more than just price competition; it may demand partnerships with established local logistics networks and a willingness to invest in infrastructure that aligns with Africa's unique market conditions.