Fraudulent transactions in Nigerian business cost Jumia 4% merchandise sales in the first quarter of 2019

Fraudulent transactions in Nigerian business cost Jumia 4% merchandise sales in the first quarter of 2019

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• Jumia discovers fraudulent activities in merchandise business
• The e-commerce said the fraud was perpetrated by some employees and agents
• The fraudulent transaction also put a question to Nigeria image at the international community.

               
           
               
                   

Jumia has flagged an improper transaction in its Nigerian business worth 4% of gross sales in the first quarter of 2019.

               
           
               
                   

Africa's e-commerce platform which listed on the New York Stock Exchange (NYSE) this year, said the flagged transaction involved some employees and Jforce agents (Jumia Jforce is a program aimed at empowering and enriching Nigerian entrepreneurs).

               
           
               
                   

“We have terminated the employees and JForce agents involved, removed the sellers implicated and implemented measures designed to prevent similar instances in the future.”

               
           
               
                   

What is the impact of this fraudulent transaction on Jumia

               
           
               
                   

The transactions generated approximately 1% of the gross merchandise value (GMV) in each of 2018 and the first quarter of 2019. In 2018, based on the company's findings, the transactions generated approximately 2% of merchandise sales in the fourth quarter of 2018 and approximately 4% in the first quarter of 2019 and approximately 0.1% in the second quarter of 2019.

               
           
               
                   

The transaction also put questions to Jumia's activities regarding issues raised by Citron after the New York listing.

               
           
               
                   

“These transactions had no impact on our financial statements,” Jumia said in its financial statement.

               
           
               
                   

How does this affect you

               
           
               
                   

This issue will also stain the image of Nigerians in the international community. it is coming a week after the arrest of Nigerian entrepreneur, Obinwanne Okeke for allegedly committing fraud to the tune of $11 million.

Source: Fraudulent transactions in Nigerian business cost Jumia 4% merchandise sales in the first quarter of 2019

- gist culled from pulseng

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