Market Insights eCommerce Online Education

Online University Education - Nigeria

Nigeria

Revenue in the Online University Education market is projected to reach US$23.89m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.99%, resulting in a projected market volume of US$40.23m by 2029.
In the Online University Education market, the number of users is expected to amount to 390.2k users by 2029.
User penetration will be 0.1% in 2024 and is expected to hit 0.1% by 2029.
The average revenue per user (ARPU) is expected to amount to US$102.60.
In global comparison, most revenue will be generated in the United States (US$82.30bn in 2024).
With a projected rate of 2.3%, the user penetration in the Online University Education market is highest in the United States.

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Analyst Opinion

The Online University Education market in Nigeria is experiencing significant growth and development.

Customer preferences: Customers in Nigeria are increasingly turning to online university education as a convenient and flexible way to pursue higher education. With the rise of technology and internet access, more Nigerians are able to access online courses and programs, allowing them to study at their own pace and from the comfort of their own homes. This is particularly appealing to individuals who are working or have family responsibilities, as it provides them with the opportunity to balance their education with their other commitments. Additionally, online university education often offers a wider range of programs and courses compared to traditional brick-and-mortar institutions, allowing customers to find a program that best suits their needs and interests.

Trends in the market: One of the key trends in the online university education market in Nigeria is the increasing number of partnerships between online education providers and local universities. These partnerships allow online education providers to offer accredited degrees and certifications, which are highly valued by Nigerian students and employers. This trend is driven by the demand for quality education that is recognized both locally and internationally. As a result, more Nigerian students are opting for online university education as a legitimate and credible alternative to traditional education. Another trend in the market is the growing popularity of Massive Open Online Courses (MOOCs). MOOCs are online courses that are open to anyone who wants to enroll, often for free or at a low cost. They provide an opportunity for individuals to gain knowledge and skills in a specific area without enrolling in a full degree program. MOOCs are particularly popular among Nigerian students who are looking to enhance their skills or explore new areas of interest. This trend is driven by the desire for lifelong learning and the need to stay competitive in the job market.

Local special circumstances: Nigeria has a large population of young people, with a significant portion of the population under the age of 30. This demographic is driving the demand for higher education, as young Nigerians recognize the importance of having a degree in a competitive job market. However, the traditional higher education system in Nigeria is unable to accommodate the growing demand, leading to overcrowded classrooms and limited resources. Online university education provides a solution to this problem by offering a scalable and accessible alternative to traditional education.

Underlying macroeconomic factors: Nigeria is experiencing rapid urbanization and economic growth, which is contributing to the development of the online university education market. As more Nigerians move to urban areas and enter the workforce, there is a greater demand for higher education and skills development. Online university education is seen as a cost-effective and efficient way to meet this demand, as it does not require the construction of physical infrastructure and can reach a large number of students. Additionally, the government of Nigeria has recognized the potential of online education to address the challenges of the traditional education system and has implemented policies to support its growth. These factors are creating a favorable environment for the development of the online university education market in Nigeria.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.