Saltside Technologies, owners of Efritin, a classified site competing with OLX and Jiji has given reasons for leaving Nigeria after 19 months of its operations.
In a Skype chat with Nigeria CommunicationsWeek, Nils Hammar, Chief Executive Officer of Saltside Technologies explained that Efritin’s decision to quit Nigeria is as a result of harsh operating conditions and ‘cost of data’
While dismissing allegations of quitting Nigeria as a result of lawsuits the company is embroiled in, Nils Hammar said:
“We are reducing our investment in Nigeria. That effectively means we are reducing our staff; everybody has to go. But in terms of using the site, it will continue as before. By investment we mean the investment we made from the launch, it will be reduced”.
He added that “Like I said earlier, data cost is too high and limits the growth potential of the market. if you look at the size of Nigeria and the online activities, there is a big discrepancies. Before e-commerce and classified ad sites will start recouping return on investments (RoI) there has to be drastic reduction in cost of data”.
What is not clear yet in his explanation is ‘cost of data’. Was he referring to cost of data to Efritin as a company and or the end user of its classified site.