You are on page 1of 69






CETIFICATION The economic of e-commerce as a virtual world market in the 21st century in Nigeria. By: Ekele Idachaba Gideon EC/2005/226

This is to certify that this project was carried out in the Department of Economics, Faculty of Social Science, Madonna University Okija, Anambra state, Nigeria.

Mr Odoemena Ahemefuna Supervisor


Dr. S.O. Nwanchukwu H.O.D


APPROVAL The economic of e-commerce as a virtual world market in the 21st century in Nigeria.

By: Ekele Idachaba Gideon EC/2005/226

This project has been approved and accepted in partial fulfilment of the requirements for the award of Bachelor of Science (Bsc.) degree in economics, Madonna University, Okija, Anambra state, Nigeria.

Mr Odoemena Ahemefuna Supervisor


Dr. S.O. Nwanchukwu H.O.D


External Examiner

. Signature/Date

DEDICATION This work is dedicated to my beloved parents, Mr. and Mrs. Paul Ekele

ACKNOWLEDGEMENT I thank the Almighty God for seeing me through, during the period if studies. I am also indebted in gratitude to my project supervisor, Mr Odoemena Ahemefuma for his contribution and guidance throughout the project period. I also thank my parents, Mr. and Mrs. Paul Ekele, for their unending love and support throughout the years. I also offer my sincere gratitude to Mr. John Ekele, Abel, Jennifer and Oscar for their assistance throughout the project phase. I also like to acknowledge the former H.O.D, the person of Chief Ezenwa Okafor for his encouragement and support. My course mates, roommates and colleagues are also remembered for all the fun memories we shared during the entire programme. Finally, I thank my dear friends, Efosa, Paul, Joshua, Oswald, Lucas, Chika, Paul II and Marshal for their continuous encouragement and care. God bless you all.

ABSTRACT This research work critically examined the economics of the e-commerce as a virtual world market in the 21st century in Nigeria as new road map for quick and easy business transactions, the economics of e-commerce will boost the level of economic growth and development in Nigeria as a lever needs to turn the economic fulcrum of our country (Nigeria) from its current under-developed commercially to the state of the developed countries. This research also answers some of the questions such as if there is an economic benefit in e-commerce in Nigeria as regards to the primary objectives of the research and to find out whether indeed ecommerce of e-commerce has an impact on the level of economic in the Nigerian economy. In the quest for optimism, we are optimistic about the vent for surplus theory formulated by Adam Smith which modified and applied to the third world nations by Hia Myint which states that the opening of the world market the remote agrarian societies creates opportunities not only to reallocate fully employed. The first working hypothesis is to quid the major activities of the study that the economics of e-commerce has been able to promote business in Nigeria with huge benefit. As such e-commerce in Nigeria both wholesale and retail subsectors have recorded a significant growth which research question a proved positively with the hypothesis which the result of the finding indicates that there is an economic benefit in e-commerce in Nigeria

CHAPTER ONE 1.1 BACKGROUND OF STUDY The meaning of e-commerce has been charged over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions

electronically, Using technology such as electronic data interchange (EDI) and electronic funds transfer (EFT). These were both introduced in the Late 1975, allowing businesses to send commercial documents like purchase order or invoices electronically. This standard had its inception in the 1948 to 1949 Berlin blockade and airlift. The United States Army quickly discovered that the manner of transacting business accompanied by paper orders could not meet with the necessary flow of goods into Berlin. In order to break the paper bottlenecks, Edward A. Gulbert, a logistic officer in the army, set up a system of ordering via telex, radio-teletype, and telephones various industries elaborated upon this system in the ensuring decades before the first general standard was published in 1975. The growth and acceptance of the credit cards, automated teller machines (ATM) and the telephone banking in the 1980`s were onwards, the electronic commerce would additionally include enterprise resources planning system (ERP), data mining and data warehousing.

Perhaps it is introduced from telephone exchange office, or maybe not. The earliest example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange, a market place of used computers launched in 1982. The first online information market place including online consulting was likely the American Information Exchange, another pre-internet system introduced in 1991. Although the internet became worldwide in 1994, with the introduction of first graphical browser software of accessing the World Wide Web and ensuring scramble for companies and individuals to get online, most e-commerce shifted to the internet. It took about five years to introduce security protocols and digital subscriber lines allowing continual connection to the internet. And by the end of 2000, a lot of European, American and the sub-Sahara business companies offered their goods and services through the World Wide Web. This form of commerce have broken like geographical distance in forming business intermediaries are being replaced by their electronic equivalent or are being made entirely dispensable (for instance, as airlines have published fare information and enable ticketing directly over the internet, stock front travel agencies have declined). Prices of commodities are generally low on the web a reflection not merely of the lowest costs of doing electronic business but also of the ease of comparison shopping in cyberspace. A new form of corporate cooperation known as a virtual company, which is actually a network of firms, each

performing some of the processes needed to manufacture a product or deliver a service has flourished. Since them people began to associate a word e-commerce with the ability of purchasing various goods and services through the internet using secure protocol and electronic payment services. E-commerce is maintaining business relationship, and selling informations, services, and commodities by means of the computer telecommunication networks. Although in the vernacular, e-commerce usually means or refers only to the trading of goods and services over the internet, broader e-commerce activities is included e-commerce consists of business-to-business and business-to-business commerce as well as internal organizational transactions that support these activities. In consumer-to-business transactions, customers/consumers are given more influence over what and how products are made and how services are made and how services are delivered, thereby broadening customer choices. E-commerce allows for faster and more open process, with customers having greater control. E-commerce makes information in products and the market as a whole is readily available and accessible and increases price transparency, when enables customers to make more appropriate purchasing decisions. A lot of issues have record an ugly head in the drive to the acceptance of ecommerce in Nigeria has a bad name in the worlds electronic market (ecommerce) since the late 1990s popularity referred to as yahoo-yahoo, issues

like this has made the stigma more visible which in turn affects the acceptance level, even with the promises of banks on security level of their websites and etransactions people are still stiff-necked on how much trust they can place on this Banks. E-commerce is promising and can totally, reduce the work burden of transactions (normal conventional transactions) but this is ugly hydra headed monster called fraud has placed Nigeria as a no go area of transaction between us and the outer world, this has reduced the growth rate of foreign investment drastically since this investors have found other countries to embrace and foster a fraud free electronic transaction (commerce). Letter in this study I will show the problems and what is needed to be put in place to facilitate the growth of ecommerce in Nigeria in the 21st century. 1.2 STATEMENT OF THE PROBLEMS Even in the recent Government development plan tagged the 7 point agenda which is just mere academics without economic plan attached to it, no proper consideration or look was given to the technology sector. Nigeria as a nation has not embraced technology to the fullest; the average use of computer in Nigeria is a computer to every 500 persons compared to that of a developed country (America) as at 1993, a computer to every 16.8 persons and as at 2005 a computer to every 1.3 persons. The Government can be said to be the major barrier to the realization of an electronic community ranging from the Government not taking it as a

pressing issue in the development scheme, no proper orientation have been given to support the patronage of the use of electronic commerce in Nigeria, no policies to encourage business owners or industries to try and venture in the electronic commerce such as Tax reduction or incentive for product or services sold online, no law or legal frame work to support activities and transactions online. The security level of e-commerce in Nigeria is poor; Nigeria has a high corruption rate which does not help in the spread of any online activities. If they can be fraud in one-on-one transactions of goods and services what would be talked about an internet based transaction. Thus, the need of a study of e-commerce as virtual world market for the 21st century in Nigeria is to suggest policies that would help in the Government of an electronic society.


OBJECTIVES OF THE STUDY The main objective of this study is to proffered solutions to the Menace and ill state of e-commerce in Nigeria, but other objectives can be seen as below; I) To identify the problems associated with the development of e-commerce in Nigeria II) To identify economic and business factors that will facilitate the growth of e-commerce in Nigeria


To ascertain if there can be economic benefits to the establishment of ecommerce in Nigeria


To make policy recommendations on how e-commerce would be a virtual world market for the 21st century in Nigeria


RESEARCH QUESTIONS I) What is the state of e-commerce in Nigeria compared to that of the developed economies? II) III) Is e-commerce a liable project in a developing economy like Nigeria? Are there economic activities that really need the services of electronic commerce in Nigeria? IV) If e-commerce is established in Nigeria can security, privacy, confidentiality among other necessary factors be assured like in the developed economy?


STAEMENT OF HYPOTHESIS H0: There is no economic benefit in e-commerce in Nigeria H1: There is an economic benefit in e-commerce in Nigeria



SIGNIFICANCE OF THE STUDY The significance of this study is widely known that with improved services in the electronic commerce and return in the discovery and proposals of this work, the underlined may stand to benefit. This work will be of relevance to our banking sector because it will help them enhance a customer relationship, ease in transactions, and bank congestion since most of the bank activities will be carried out via internet. This will in turn restore confidence in the banking industries on the part of the customers as fear carrying out bulky transactions would be eliminated. It will help the government enhance a relationship between the advance economies of the world since trust would be restored and transaction can now be carried out via the internet. Also trade in the country would not be left on touch as services and goods produced here can now be widely consumed home and abroad. This study will envision ways to which the economy at large can benefit from the acceptance and development of e-commerce in Nigeria in this 21st century.


DELIMINATION/SCOPE OF THE STUDY The study would embrace a period of 1994-2008. Since e-commerce originally came into blue it is also very important to link this to when Nigeria first embraced e-commerce in 1998. It will also encompass the problems facing Nigeria in its

acceptance of e-commerce, security issues, trust, fraud etc. Not living out that this period also witnessed the inception of yahoo-yahoo (fraud) in Nigeria, since its the major problem facing the embracement of electronic commerce in Nigeria.


ASSUMPTION OF THE STUDY This research work is carried out based on a few assumption listed below. I) The figures derived from the secondary data represent the total population, of the Nigeria sector embracing electronic commerce. II) The banking sector, sales, and industrial sectors are the only people in need of e-commerce.


CHAPTER TWO REVIEW OF LITERATURE 2.1 INTRODUCTION: Electronic commerce (e-commerce) has being widely defined to be the buying and selling of goods and services over the internet (Chaffey; E-BUSINESS). It has also been defined as the sharing of business information, the maintaining of business relationship and the condition of transactions by means of telecommunication networks (Zwass; ijec). The United Kingdom cabinet office defined it as the exchange of information across electronic networks at any stage in the supply chain, whether within an organization, between the public and private sector, whether paid or unpaid (United Kingdom cabinet office 1999). The scope of electronic commerce is wide and includes all electronically mediated transactions between an organization and the third party. It is not restricted solely to the actual buyer and seller of products, but includes pre-sale and post-sale activities (Kalakota and Whinston; Electronic Commerce). In more liberal terms, once a contract of sales is affected between a seller and a buyer using such electronic means as the electronic mail, regardless of distance or any geographical barrier, it is within the province of electronic commerce (Kosour; Understanding electronic commerce).

The objectives of electronic commerce are legion. They include the facilitation of international cooperation through trade, making goods and services available to customers all over the world irrespective of distance, the expansion of customer base for manufacturers or producers of goods and services, and a reduction in the cost of service of delivery by delivering these electronically (Chaffey EBUSINESS). The objectives of e-commerce underscores its importance in the emerging global community with the effects that todays customers are able to have access to goods and services in the remotest parts of the world without having to see the sellers. The traditional buying and selling process is being gradually replaced by internet trading, especially in more advanced countries (Bali; Information Technology and the Law). The major significance of e-commerce thus lies in the fact that it encourages a single world trade system which is facilitated by access through electronic means of goods and services from different parts of the world. This has lead to the emergence of uniform regulation rules on the internet governance to ensure the homogeneity of the conditions under which transactions are made to suppliers and consumers of goods and services through the internet (Steinfield and Klein; 1999). As electronic commerce grows, an important socio-economic side effect will be increased competition with the traditional business in any given local community.


Our research suggest that local merchants typically go online in order to better access distant market, but are often unprepared to cater for remote consumer and hence do not fare well. Despite the rhetoric that electronic commerce is free from the constraint of geography, we argue that there are good reasons to consider the role of physical location in making e-commerce splurge. In the great excitement generated by the internets potential to globalize commerce, researchers have virtually ignored how electronic commerce will impact local businesses and their communities. A primary emphasis is most discussions of electronic commerce is the global nature of electronic market and the low cost of reaching customers throughout the world (e.g., a firm that did not even exist a couple of years ago, now sells book in more than 150 countries). Through electronic commerce, companies are now within reach of anyone with internet access, enabling than the complete with traditional businesses in any given community without having to make the investment in brick and mortal and without an expensive private global telecommunications network. The webs theoretically lower transactions cost that formerly served as a barrier to entry in local markets, enabling customers to become aware of any transact with electronic retailer located anywhere.


The rhetoric suggesting that electronic commerce fosters global markets is convincing, and exerts a powerful influence on the businesses in any going online (Steinfield and Klein; 1999). Indeed an article in the Economist proclaimed, that the internet is affecting all businesses in similar ways. Every industry, for example, has suddenly become part of the global network where all companies are equally easy to reach. As a result of this changes many businesses that survived mainly because they were conveniently planed, or because they produced information that were hard to find, will soon have to find some other raison d etre (The Economist, 1997, 14th August ). As electronic commerce grows, an important socio- economic side effect will be increased competition with the traditional business in any given community (Steinfield, Mahler and Baure; 1999). A recent report by Jupiter Communication, an internet research firm, estimated 94% of online purchases made in 1999 would otherwise have been made in traditional retail channels. Of course, local businesses may also gain from the efficiencies afforded by electronic commerce, both in better serving their local constituencies and by reaching out to distant markets some anecdotal evidence suggests that in some instances this is occurring, especially as traditional retailer learn to better integrate their web and physical outlet (New York Times; 1999, August 16th; Steinfield and Klein; 1999). However, at least one study suggests that local merchants are, in general ill prepared to take full advantage of

electronic commerce and thus unlikely to see any gains from it (Steinfield and Klein; 1999). Other anecdotal evidence points to the plight of local merchants who intend to go online with limited resources, with examples of local stores who sell little to nothing through their online venture (New York Times; 1999, July 26 th). These initial indications suggest the need for new research on local impact of ecommerce. 2.2 DEFINATION OF ELECTRONIC COMMERCE: Electronic commerce or e-commerce refers to a wide range of online business activities for product and services. It also pertains to any form of business transaction in which the parties interact electronically rather than physical contact; this is according to Britannicas definition Electronic commerce is usually associated with buying and selling over the internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer- mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is; ecommerce is the use of electronic communication and digital information processing technology in business transaction to create, transform and redefine


relationships for value creation between or among organizations, and between organizations and individuals (P. Trimmers; Electronic commerce, 2003). Simply put, e-commerce is the online transaction of business, featuring linked computer system of the vendor, host and buyer. Electronic transaction involves the transfer of ownership or right to use a good or service. Most people are only familiar with business to consumer [b2c] electronic business. Common illustrations include, and (; US Government Export Portal). According to Monster Commerce e-commerce tutorial; e-commerce is a term for any type of business, or commercial transaction that involves the transfer of information across the internet. It covers a range of different type of businesses, from customer based retail sites to business exchanges trading goods and services between cooperation. It is currently one of the most important aspects of the internet to emerge. Electronic commerce allows consumers to electronically exchange goods and services with no barriers of time and distance, e-commerce has expanded rapidly over the past 5 years and its predicted to continue to the rate, or even accelerate in the near future the boundaries between continental and electronic commerce


will become increasingly blurred as more and more businesses move sections of their operations onto the internet (Whinston, A.B.; Economics of e-commerce). E-commerce is online commerce verses real world commerce. E-commerce includes retail shopping, banking, stocks and bonds trading, auctions, real estate transactions, air ticket booking, movie rentals- nearly anything you can imagine in the real world. Even personal services such as hair and nail saloons can benefit from e-commerce by providing a website for the sales of related health and beauty products, normally available to local customers exclusively. While e-commerce one requires an expensive interface and personal security certificate, this is no longer the case. Virtual storefronts are offered by a variety of hosting services and large internet presences such as eBay and Yahoo!, which offer turnkey solutions to vendors with little or no online experiences. Tools for running successful e-commerce websites are built into the hosting servers, eliminating the need for the individual merchant to redesign it. These tools include benefits like shopping charts, inventory sales logs and the ability to accept a variety of payment options including secure credit card transactions (New York Times; 1999).



TYPES OF E-COMMERCE: A variety of businesses are conducted online, but retail transactions make up the largest part of e-commerce which measures up to 80% of the total world force of ecommerce (Davidow and Malone; 1998). Consumers can find computers, automobiles, clothing, books, music, air ticket, food and just anything man can imagine for sale on the internet. Listed here are various types of e-commerce; I. Business to business [b2b] II. Business to consumer [b2c] III. Business to government [b2g] IV. Consumer to consumer [c2c] and V. Mobile commerce [m-commerce]

I. BUSINESS TO BUSINESS: Business to business [b2b] e-commerce is simple defined as e-commerce between corporate organization/companies that deal with relationship between and among businesses. This type of e-commerce has two primary component; e-frastructure and e-market. Business to business e-commerce usually deals with hundreds or


even thousands of other businesses, either with customers or suppliers. Caring out these transactions electronically provides vast competitive advantages over traditional methods. When implemented properly e-commerce is often faster, cheaper and more convenient than traditional methods. II. BUSINESS TO CUSTOMERS: Business to customer e-commerce, or commerce between companies and consumers, involves gathering information, purchasing physical goods [i.e. tangibles such as books or consumer products] or information goods (or goods of electronic material or digitalized contents, such as software, e-books, music and games) all this are receiving products over an electronic medium/ network. The most common applications of this type of e-commerce are in the areas of purchasing products and information as personal finance management, which pertains to the management of personal investment and finances with the use of online banking tools. B2C e-commerce reduces transaction costs (particularly search cost) by increasing consumer access to information and allowing consumers to find the most competitive price to s product or service. B2C e-commerce also reduces market entry barrier since the cost of putting up and maintaining a website is much cheaper than installing a brick-and-mortal structure for a firm. In the case of information goods, B2C e-commerce is even more attractive, because it saves

firms from factoring on the additional cost of a physical distribution network. Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible.

III. BUSINESS TO GOVERNMENT: Business-to-Government e-commerce or (B2G) is generally defined as commerce between the private and public sector via the electronic media. It refers to the use of the internet for public procurement, licensing procedures, and other government related operations. This kind of e-commerce has two features: a) The public sector assumes a pilot/leading role in establishing e-commerce and b) It is assumed that the public sector has the greatest need for making its procurement system more effective. A web-based purchasing policy increases the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G e-commerce market as a component of total e-commerce is insignificant, as government eprocurement system remains undeveloped. (Davidow and Malone, 1998). IV. CONSUMER TO CONSUMER: This consumer to consumer e-commerce (C2C) is simply commerce between private individuals or consumers.

This type of e-commerce is characterized by the growth of electronic marketplaces and online actions, particularly in vertical industries where firms/ businesses can bid for what they want from among multiple suppliers. It perhaps has the greatest potential for developing new markets. V. MOBILE- COMMERCE: Mobile-commerce has been accepted and well practiced in our part of the globe, because it is rated the easiest amongst the different types of e-commerce (the economist, 2005). M-commerce is the buying and selling of goods and services through wireless technologies i.e. handheld devices such as cellular telephones and personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce. As content delivery over wireless devices becomes faster, more secure and scalable, some believe that m-commerce will surpass wireless e-commerce as the method of choice for digital commerce transactions. This may well be true for the Africa continent where there are more mobile phone users than computer users.



E-COMMERCE OVER LOCAL BUSINESS ADVANTAGES OF E-COMMERCE: Transaction-cost economics, emphasizing the cost savings afforded by network based communication, is generally used to explain the rise of global electronic markets (Benjamin and Wigand, 1995; Malone, Yates and Benjamin, 1987; Miller, Clemons and Row 1993; Wildman and Guerim-Calvert, 1990). Networks reduce the constraints imposed by distance by permitting the rapid exchange of information between distant buyers and sellers while avoiding costly search efforts (Malone et al, 1987; Wildman and Guerim-Calvert, 1990). Not only does electronic commerce support the provision of goods and services at a low cost, but it can potentially enable greater customization to the need of individual buyers (Choi et al, 1996; Kalakota and Whinston, 1996). As the argument typically goes, distance becomes irrelevant for goods and services that can be produced anywhere and either delivered electronically or physically by courier to buyers (Malone et al; 1987) spelled out the network efforts particularly in the areas of buyers search, where electronic brokerage capacities of networks enable buyers to search for and locate product that match desired features and prices. The relatively low cost of creating a web presence, which is then accessible to those connected to the internet world wide, enables firms to use their electronic sites as a surrogate to establishing


a physical presence in a local market. Distant web based businesses have several advantages over their local physical businesses (Steinfield et al; 1999). Such advantages include: a) Access to a wide potential market. b) Low sunk cost because a builder or rented space in each market is not required. And they may operate with less or no inventory. c) Better economies of scale arising from a larger customer base, and consequently volume discount on inputs (Wigand and Benjamin, 1995; Wigand, 1997) d) Ability to setup facilities near important factors of production, which would not be available to an offline physical business in a given community. e) Lower costs due to the ability to bypass many of the intermediaries in the retail distribution value chain. f) A higher degree of transaction automation, leading to improved services and lower labor cost. g) Ability to rapidly respond to changes in the markets, through price routine interactions with customers (Steinfield et al; 1993). h) Ability to offer 7 days by 24 hours access with little additional cost.


i) No limitation on the depth of information provided to customers, which can aid in product selection and potentially reduce return rates (New York Times, August 23, 1999). These economics can potentially enable web based retailers to easily undercut the price of local retailers who formerly faced little or no competition. Despite some empirical evidence to the contrary (Bailey and Brynjolfsson 1997; Palmer 1997), there is a general expectation that price will be lower on the web. Using transaction cost theory, we can conclude that electronic commerce implies new competition to local retailers, particularly those offering products that are rapid by obtainable from other sources, and that are easily transported. Of course local merchants might respond by establishing their own web presence, making up any business lost to web-based competitive by expanding into new geographic markets themselves. However, they are good reasons to be skeptical about the likely success of this strategy for many smaller local retailers (Steinfield et al; 1999). Web startup firms face significant barriers in their attempt to attract customers. The sheer number of new web businesses reduces the likelihood that people will chance upon a web store, necessitating large marketing and advertising expenditures to get noticed. Smaller local retailers also may not have the business system in place to adequately serve distant customers, even if they do attract them.


The ability to process electronic order, verify payments, ship to distant customers, properly apply sales tax regimes, handle returns and many other skills need to be acquired. Moreover, despite the increasing sales activity on the web, lack of trust remains a strong inhibitor. Unknown virtual web stores are more likely to experience problems due to lack of trust than establishing brand names, favoring the larger nationally known company. In fact, at least one survey of web users has shown that lack of a local physical presence inhabits purchases. Other survey suggests that problems with unreliable products and difficulties returning goods have dissuaded internet shoppers from being repeat buyers. Recently, one internet market research firm reported that nearly two third of all online customers still do not trust web sites with private information, despite the use of prominently featured privacy policies (Jupiter communications; 1999). Probably most importantly, smaller local firms are unlikely to have resources or skills to create the kind of sophisticated, highly interactive websites that now populate the web (New York Times, July 26th, 1999). 2.5 ELECTRONIC COMMERCE IN NIGERIA Until 1998, Nigeria had only a few dial up providers and a few internet service providers (ISPs) operating on low links in the country. The Economist intelligence unit estimate that the number of internet users per 100 persons grew from 1.25 in


2004 to 1.82 in 2005 and 2.5 in 2008. They are progress in this sector, as illustrated by cyber-cafes springing up even in some of the remote part of the country. Lagos alone has more than 1000 cyber-cafes. Business application value of online communication is growing rapidly, but with low household disposable income and a restricted infrastructure. It will still be a while before internet penetration in homes reaches a significant level. On March 3rd, 2004, the Federal Government launched joint initiative between private-sector operators, which operates under National e-Government strategies limited (NeGst) and the National Information Technology Development Agency (NITDA), an agency of the Federal Ministry of science and technology. The project aims to improve organizational performance, service delivery and the participation of ordinary citizen in the day-to-day activities of Government with information and communication technologies. The growth of e-commerce in Nigeria has been slow and steady. The vast improvement in telecommunications service in the country as illustrated by the explosion of subscribers and users of GSM (global system of mobile communication), is further underscored by a surge in private telecom operators (PTOs) offering fixed wireless services, which offers data and voice transfer. Hence this supports internet use even in some of the most rural parts of the


country. This phenomenon not only lets Nigerians communicate with the rest of the world and the country from areas that had been completely cut off, but they are also getting use to the phenomenon of modern communications, including GSM, short message services (SMS) and e-mail. Furthermore, with the reduction in tariffs already implemented in Nigerian telecommunication (NITEL, the National telecoms carriers) and further cuts expected telecoms services is becoming more affordable and essential to many Nigerians. According to the Economist Intelligence Unit, the stock of personal computers (PC) per 1000 persons grew from 10.66 in 2004 to 11.09 in 2005. The biggest impediment to growth of e-commerce is low PC penetration. But cheap Asian technologies and falling micro-chip prices have fueled a market in clones as well as branded PCs. The introduction of e-commerce services is hampered by a lack of public awareness on how to use the technology. GSM phone technology (introduced in August 2000) in Nigeria, however, is generally draining customers, and there have been a rapid growth in electronic-cash-transfer services such as Western Union, Money Gram and Travelex in recent years. Electronic banking is one area of e-commerce that has proven successful in Nigeria virtually all banks in Nigeria offer online, real-time banking services. Moreover

banks that cannot offer these services are increasingly losing their customers. Online real-time banking services have now become common place as customers are offered the flexibility of operating of an account in any branch of their banks network. The online services lets customers conduct variety of banking activities in any location of their particular bank. These services include among others, deposits, withdrawals, transfers and issuing of drafts. Banks are also increasingly looking to card-based payment solutions beyond the widely accepted electronic purse, including debit cards and credit cards, but these are slow to take off. The most likely services to roll out on a large scale in Nigeria are the ATM system (Automated teller machine). A few banks started the ATM consortium in 2003 to setup ATMs across the country via Interswitch, and it is gearing up to raise finance. Nigeria as a black nation, a 3rd World country has not achieved so much out if this whelm bank called e-commerce. Out if the five types of e-commerce listed and discussed, Nigeria has so far ventured into only the two cheapest types of ecommerce, Business-to-Customers and the m-commerce. We also have tried partially the Business-to-Government, in sectors like the Nigeria Immigration, Nigeria Police and Navy which recently conducted their recruitment via the internet.


Looking to the history of e-commerce, country had a vital role to play in the development of e-commerce. In the US, the Government started the Business-toGovernment e-commerce due to the uncontrollable inflow of imported goods through their ports, statistics had it that it took a minimum of 15 working days to clear goods from the ports (; US Government Export Portal). In South Africa same story to tell about the inception of e-commerce, the government went a further step in providing software and website materials for big wholesale shops and industries so they can provide online services for their retailers ( South Africa National Port Authority). 2.6 M-COMMERCE IN THE NIGERIA BANKING SECTOR In late 2003, First Atlantic Bank now Fin Bank introduced flash me cash, a system of e-commerce transfer of funds through the use of mobile phones from one account to the another, now instead of customers going to the bank to effect transfer from an account to another account, the customer simply carries out the transaction via the use of a mobile phone and the second party will also be alerted via a text message. In recent years, banks have made their transactions/services increasingly convenient through the mobile banking a sub function of e-commerce. Here


customers check account balance, make transfer, drafts and withdrawals via the mobile banking. Also the Automated Teller Machine (ATMs) enables bank customers to withdraw money, cash cheque, make deposits via ATM spots (UBA bulletin; February 19 th 2008). These transactions can be carried out 24 hours a day and 7 days a week wherever ATMs are located, including foreign countries. Banks also use electronic transfers to deposit payroll cheques directly into a customers account and automatically pays a customers bill when due. Many banks also use the internet to enable customers to pay bills, move money between accounts and perform other banking functions. In April 2005, Intercontinental Bank took the lead with the introduction of electronic banking which included different packages, like online banking (electronic transfer, electronic wiring of funds, account notification and ATMs). According to Mr. Anni Chinedu Managing Director Intercontinental Bank Plc, he said; since the inception of e-banking, bank congestion has reduced drastically by 40% and issues of been understaffed has not since been heard. He also said it was not easy convincing customers that there was no need for withdrawal booklets and cheque books but as soon as there was a form of acceptance a speeding growth was achieved.


Other banks like United Bank of Africa, Guarantee Trust Bank, Zenith Bank and Standard Trust Bank followed the trend late 2005nand had the same result in March 2007, a policy was introduced in the Banking sector to control congestion in the banking halls, it was that all transactions especially withdrawals lower than N 100000 should be carried out outside the banking hall, this was also to increase the initial averagely 51.7% congestion in the banking halls to 23%. Below is a table showing the performance of selected Banks before and after the introduction of e-commerce in the banking sector.










Customers satisfaction Bank congestion AFTER Customers satisfaction Bank congestion























Source: (The Economist; performance of e-commerce in Nigeria, 2006, December 2nd) Relatively there have been positive changes in the Banking sector since the inception of m-commerce in the Nigeria banking sector.



E-COMMERCE IN THE AVIATION SECTOR Similar changes faced with the Banking sector is what faced the aviation sector; Airport terminal congestion and poor customer satisfaction, those were the major problems the aviation sector faced. Problems of flight booking, flight cancellation, ticket reoccurrences, and difficulty in re-booking a flight schedule were experienced and labeled unavailable until the introduction of e-commerce in the aviation sector. Now airline like Changchangi, Aero Contractor, Virgin Nigeria, Arik and Albaka airlines now have web services where flight booking, flight cancellation, rebooking/ rescheduling of flight can be done without stress and the side of both the customers and the service providers. Now more than one hundred customers can now book and cancel flight schedule as well as reschedule all at the same time. According to Time magazine article (August, 2008) Nigerias 21 st Century Air Service, more than 40% of flight bookings are now done online with payment made via- electronic cash cards supported by Interswitch. This service is made possible due to the inception of debit and credit cards by the 21 st century banks to ease the banking sector. Research carried out on selected Airlines shows that before the end of 2010, 80% of air service activities would be done electronically

and the primary constrains faced by this sector which is customer satisfaction and Air terminal congestion will be maximized and minimized respectively. Below is a table showing the performance of selected Airlines before and after the inception of e-commerce in the Nigeria aviation sector. 2.7.1 BEFORE


PERFORMANCE 32% 37% 23% 33.50% 30%


2.7.2 AFTER


PERFORMANCE 52% 70% 77% 65% 64%

Source: (The Time Magazine article Nigerias 21st Century Air service; August, 2008). 2.8 E-COMMERCE IN THE BUSINESS SECTOR Up till now a good number of business activities are still done the traditional way, not because the electronic means are not available but because the cost of acquisition is still on the high side and changes attributed to them are much, and after been paid gains are not made. This is because population of the market still prefers the traditional way of transaction.


Research carried out shows on eateries and shopping supper market shows that out of every one hundred customers that comes into shop in a day only two of them are ready to pay through any electronic means (The Economist, Performance of ecommerce in Nigeria, 2006, December 2nd) due to this, profits are not made because charges are charged on every transaction made electronically, and general service charge still have to be made whether sales are made or not. This is not a good business activity for them, they say. They insist the awareness of this electronic payment system is not enough and that more need to be done, so the activity can be a profitable business activity were taxes, services charge and charges made per electronic transaction would be taken and the business owners would not be at a loss. 2.9 PROBLEM ASSOCIATED WITH THE DEVELOPMENT OF E-

COMMERCE IN NIGERIA Since the inception of e-commerce in Nigeria, both the services and retail sectors have notice a slow but significant growth, if not for some sited problems are listed and analyzed below a) Security b) Profitability c) Privacy

d) Inadequate information and improper orientation SECURITY Established encryption methods such as secure sockets layer (SSL), a protocol developed by Netscape Communication Corporation, encode credit cards numbers and other information to foil would be thieves. Shoppers can determine if the site they are using is secure by noting the secure icon at the bottom of their browser window. Also, the address if internet will carry the https prefix instead of the standard http prefix when the site is secured. Nevertheless some customers are reluctant to divulge personal information over the internet, and their reluctances have hindered the growth of e-commerce. PRIVACY In addition to credit card security, many shoppers also worry about privacy. Ro put them at ease, many internet store post privacy statement that explain their policy of sharing or not sharing customers information with other organization. This privacy policy may include refusing to give the customers name and e-mail address to companies that send unsolicited and unwanted commercial e-mails often known as junk mail or spam and mobile messages. Even at this, customers are still reluctant to give out their card information online which is not promoting the growth of electronic commerce.

PROFITABILITY A large percentage of e-commerce business went bankrupt in 2000 and 2001, mostly due to inadequate business plans and excessive spending on advertising and marketing to attract customers to their websites. The dot-com of the late 1900s had largely turned into a dot-com bust as the 21st century began. An estimated of 30 ecommerce businesses either ceased operation or declared bankruptcy from 2002 to 2004, resulting in the layoffs of nearly 30000 employees. A number of ecommerce sites began to report profits in 2005. Notable among them is, which pioneered many of the tools and procedures now commonplace in online retail sites in Nigeria. INADEQUATE INFORMATION AND IMPROPER ORIENTATION Customers are not properly oriented about the usefulness, convenience and advantages of e-commerce, so the growth of this sector of the economy is very slow compared to the estimated result. If only more awareness and the right orientation with respect to the advantage accruable to the patronage of this sector, then customers can be comfortable and participate fully in the development and growth of e-commerce in Nigeria. Other notable problems associated with e-commerce growth in Nigeria are;



Foreign Investment: present legislation stipulates that businesses wishing to provide internet services must be 70% locally owned


Intellectual Property: there are no specific legislation concerning intellectual properties and e-commerce, although Nigeria is a signatory to six international treaties relating to intellectual property.


Consumer protection: there is no specific legislation concerning consumer protection and e-commerce in Nigeria. There is no specific legislation relating to contract law and dispute resolution in Nigeria.


Basic for Taxation: the present tax law in Nigeria does not specifically account for e-commerce transaction.


Classification of e-commerce Transaction: present tax laws do not specifically classify e-commerce transaction in Nigeria.


Compliance and enforcement issues: since e-commerce is in its infancy in Nigeria, legislation have not specified or finalized legislation concerning compliance and enforcement. The Nigeria Communication Commission is an Independent regulatory body that promotes growth in information and communication technologies (Bali, O; Information technology and the law, 2002).


CHAPTER 3 RESEARCH METHODOLOGY 3.0 INTRODUCTION: Arthurs (2002) is of view that research methodology is the specification of procedures for collecting and analyzing data to define and solve problems. It forms the framework of the entire research and involves the determination of the most suitable method of investigation in nature of research instrument in the sample plan and the type of data to be collected.


RESEARCH DESIGN: The method adopted for this study is survey method. The rationale for choosing this method is that it focuses on people, the vital facts of people, and our beliefs, opinion, attitudes, motivation and their behaviour. Paj (2002:32) states that survey is the excellent vehicle for measuring a large population. Shobowole (2003:34) adds that it helps in the standardization of the researchers questions and guarantees as much as possible uniformity of answers from respondents and it also facilitate data processing through the easy coding.

However, it is also an exploratory study which seeks to collect data in order to answer the research question and which form the basis for the study.


AREA OF STUDY: The researcher chose Gbagade in Badagry local government area, Lagos state, as the area of study. It has a population count of about 50,000 inhabitants and its major inhabitants are Yorubas with a slight mixture of Igbos, Urhobos and Hausa. It is a rapidly developing town located in the suburban part of Lagos state. Its inhabitants are predominately traders, bankers, consultants and students. The reasons behind its selection by the researcher are embedded in the growing demand for electronic commerce in the area, since the area is dominated by bankers, traders and students.


POPULATION OF STUDENT: The researchers population of study comprises of those individuals in the society who possess the following attributes; a- The age requirements of at least 25 years b- Gainfully employed or own a business

c- Business must involve; service provision scale or purchase. The population of the study is thus finite as it can be derived using a survey technique which would show the satisfactory candidates and their level of satisfaction. Thus the population size would be 50 respondents.


SAMPLE AND SAMPLING TECHNIQUE: In selecting the sample, the researcher adopted the simple random sampling technique. This technique was adopted to ensure that each person in the population had equal chances of being selected in the sampling in order to obtain a reasonably accurate data which is said to be the sign of success to effort towards a research study. Hence, the total number of sampler selected were 50 in number.


INSTRUMENT FOR DATE COLLECTION: The major instrument employed by the researcher for the purpose of collecting data was the structured questionnaire. 50 copies of the questionnaire which were structured by nature were sent out to the randomly selected samples with useful information on the subject.



VALIDITY AND RELIABILITY OF INSTRUMENT: The instrument was examined and content validated by my project supervisor Mr. Ahemefuna Odiemena, Economic department Madonna University, Anambra state. The instrument was also examined by an external professional in the field. The questionnaire was thoroughly examined by them and based on the

recommendation; necessary reviews were carried out on the instrument.


ADMINISTRATION OF THE INSTRUMENT: The researcher personally administered 50 copies of the questionnaires by hand to different individuals chosen as respondents. After two weeks interval the

researcher went back to collect the responses contained in the questionnaire issued out to the respondents.


METHOD OF DATA ANALYSIS: The responses gotten from the questionnaires were presented in tabular form. The responses in tables were converted to percentages. Interpretations were based in the findings and research questions in use.


The statistical tool employed was the chi-square (X2) to test the statistical significant differences between the observed and the expected frequencies. The chi-square formula is thus given as; X2 = (Oi-Ei) 2 Ei

Where; X2= chi-square Oi = Observed frequency. Ei = Expected frequency.



From the above, 50 questionnaires in total were administered to the respondents. 47 questionnaires were returned, which forms 94%, while 3 questionnaires were not returned making 6% of the questionnaires.


4.1.2 SEX OF RESPONDENTS TABLE: TABLE 2 CATEGORY Male Female Total DISTRIBUTION 29 18 47 PERCENTAGE (%) 61.7% 38.3% 100%

From the above table, there were a total of 47 valid respondents, who consisted of 20 males (61.7%) and 18 female (38.3%)

4.1.3 AGE OF RESPONDENTS: TABLE 3 CATEGORY 25-35 years 36-45 years Above 45 years DISTRIBUTION 16 10 21 PERCENTAGE (%) 34.0% 21.3% 44.7%




The above table states that, of the 47 respondents, 16 (34%) were between the ages of 25-35 years, 10 (21.3%) were between the ages of 36-45 years, and 21 respondents (44.7%) were above the ages of 45 years.

4.1.4 EMPLOYMENT QUALIFICATION: TABLE 4 CATEGORY unemployed Self employed employed TOTAL DISTRIBUTION 0 27 20 47 PERCENTAGE 0% 57.4% 42.6% 100%

The above table states that, of the 47 responsibility none (0%) were unemployed, 27 (57.4%) were self-employed and 20 respondents (42.6%) were employed



The above table states that, cut of the 47 respondents, 18 (38.3%) were into service provision business/employment, 23(48.9%) were into buying and selling business/employment business/employment. and 6 (12.8%) were into other types of


ANALYSIS OF DATA: In analysing the responses of the 47 valid respondents, positive and negative state were used for easy analysis. Positive statement implies an agreement with the issue under review which will lead to the acceptance of the alternative hypothesis (H 1). On the other hand, negative statement implies a disagreement with the issue under review, which will lead to the rejection of the alternative hypothesis (H1) and acceptance of the null hypothesis (H0). The table below will show the responses to question No.6 in the questionnaire

4.1.6 TABLE 6 CATEGORY Positive Negative Total DISTRIBUTION 47 0 47 PERCENTAGE (%) 100 0 100


From the above table, 100% of the respondents (47) indicated that e-commerce has a high potential on wealth creation in Nigeria. No respondent gave a category statement. The table below will show the responses to question No.1 in the questionnaire 4.1.7 TABLE 7 CATEGORY Positive Negative Total DISTRIBUTION 19 28 47 PERCENTAGE (%) 40.4 59.6 100

From the table above 19 respondents (40.4%) indicated conformity that ecommerce is performing optimally in Nigeria. 28 respondents (59.6%) disagreed with the statement.

The table below will show the responses to question No.8 in the questionnaire. 4.1.8 TABLE 8 CATEGORY Positive DISTRIBUTION 45 PERCENTAGE (%) 95.7


Negative Total

2 47

4.3 100

The above indicates that 45 respondents (95.7%) gave positive remark concerning the issue that effective utilization of e-commerce will lead to economic growth in Nigeria, while 2 respondents making 4.3% gave a negative remark concerning the issue.

The Table below will show the responses to the question No.10 in the questionnaire 4.1.9 TABLE 9 CATEGORY Positive Negative Total DISTRIBUTION 28 19 47 PERCENTAGE (%) 59.6 40.4 100

The table above indicates that 28 respondents (59.6%) gave their remark as ecommerce has been widely accepted in Nigeria. 19 respondents (40.4%) gave negative remarks. The Table below shows the responses to the question No.11 in the questionnaire.


4.1.10 TABLE 10 CATEGORY Positive Negative Total DISTRIBUTION 8 39 47 PERCENTAGE (%) 17 83 100

The Table indicates that 8 respondents (17%) gave positive remarks that Government has done enough to ensure the optimal performance of e-commerce in Nigeria. 39 respondents (83%) who are the majority gave negative remarks.

The Table below will show the responses to the question No. 12 in the questionnaire. 4.1.11 TABLE 11 CATEGORY DISTRIBUTION PERCENTAGE (%)


Positive Negative Total

39 8 47

83 17 100

The Table indicates that majority of the respondents 39(83%) agree to the statement that inadequate information and improper orientation is an obstacle to ecommerce in Nigeria while 8 respondents (17%) disagree or gave negative remarks. The Table below will show the responses to the question No. 13 in the questionnaires 4.1.12 TABLE 12 CATEGORY Positive Negative Total DISTRIBUTION 47 0 47 PERCENTAGE (%) 100 0 100


The Table above indicates that 47 respondents (100%) agree or gave positive remarks that the poor security and privacy level are independent to the growth of ecommerce in Nigeria. The Table below shows the responses to the question No.14 in the questionnaire.

4.1.13 TABLE 13 CATEGORY Positive Negative Total DISTRIBUTION 21 26 47 PERCENTAGE (%) 44.7 53.3 100

From the above table indicates that 21 respondents (44.7%) gave positive remarks that the private sectors participation in e-commerce is scarce in Nigeria, and a majority of 26 respondents (53.3%) gave negative remarks.


The table below shows the responses to the question No.15 in the questionnaire. 4.1.14 TABLE 14 CATEGORY Positive Negative Total DISTRIBUTION 43 4 47 PERCENTAGE (%) 91.5 8.5 100

From the table above, it shows that 43 respondents (91.5%) gave positive remarks about the statement that e-commerce has caused a positive affiliate between Nigeria and the developed world. 4 respondents (8.5%) gave negative remarks to this. TEST OF HYPOTHESIS: After going through the process of Data presentation and statistical interpretation, the hypothesis earlier developed in Chapter one (1) will be tested using the ChiSquare (X2) test The test statistics is given by X2 = (Oi-Ei) 2 Ei

Where X2 = Chi-Square test Oi = Observed frequency Ei = Expected frequency

4.2.1 TEST OF HYPOTHEISIS Ho: There is no economic benefit in e-commerce in Nigeria H1: There is an (are) economic benefit(s) in e-commerce in Nigeria Question N0.9 in the questionnaire will be used to test the above hypothesis

Question No.: There is an economic benefit in e-commerce in Nigeria CATEGORY Positive Negative Total DISTRIBUTION 38 7 47 PERCENTAGE (%) 80.85% 19.15% 100%


Chi-square X2= (Oi-Ei) 2 Ei

Ei =N/K Ei =47/2 Ei =23.5



Oi - Ei

(Oi - Ei)2

(Oi-Ei) 2 Ei 8.95 8.95

38 7

23.5 23.5

14.5 -14.5

210.25 210.25

Calculated Chi-square (X2) = 17.90 Level of significance = 5% or 0.05 Degree of freedom (d.f) = (C-1) (r-1) (d.f) = (5-1) (2-1)

(d.f) = (4) (1)

Degree of

freedom = 4

At 5% (0.05) level of significance and 4 degree of freedom Tabulated Chi-square (X2) is 9.488 Calculated Chi-square (X2) is 17.90

DECISION: Since the tabulated chi-square (X2) value (9.488) is less than the calculated Chisquare (X2) value (17.90), reject the null hypothesis (H0) and accept the alternative hypothesis (H1), which states that; there is an economic benefit in e-commerce in Nigeria.


SUMMARY/ DISCUSSION OF FINDING, CONCLUSION AND RECOMMENDATIONS 5.1 SUMMARY OF FINDINGS Since the inception of e-commerce in Nigeria, both the service and retail sectors have noticed a significant growth, if not for some problems like the poor security and privacy level, low profitability level, inadequate information and improper orientation that have stood as impediments to the growth of e-commerce in Nigeria. These listed obstacles have stood in the way of both the private and the public sectors, causing them not to identify the viability of e-commerce as a virtual world market in the 21st century in Nigeria. The significance of this study was to reveal the potentials hidden in the e-commerce sector, as well as enhance knowledge on the factors hindering the effective performance of e-commerce in Nigeria. Relevant literatures on the economics of e-commerce of e-commerce in Nigeria were examined to find out the extent of work already done. The main data collection technique employed by the researcher on the study was the administration of questionnaire. The questionnaire was successfully subjected to reliability and validity task before it was finally administered. The items were sent to valuators who examined them in terms of face and content validations. A simple random sampling technique employed in order to select the samples of the

study. The sample size is 50, although only 47 respondents proved capable of providing relevant information for the research work. In data analysis, frequency table and Chi-square (X2) test were the technique used. 5.2 DISCUSSION OF FINDINGS From the data collected from the issue of questionnaire to respondent, various insights were gotten and inference was made from the distribution of the data into positive and negative. Table No.6 shows the distribution of respondents into positive and negative, showing their respondent to the statement; e-commerce has a high potential on wealth creation in Nigeria. All of the 47 respondents agreed to this statement. Table No.10 with the statement; Government has done enough to ensure the optimal performance of e-commerce in Nigeria. 39 of the respondents making up 83% of the total respondents disagreed with the statement. This disagreement means the Government has not done enough to optimize the performance of ecommerce. Table No.13 shows that poor security and privacy level are impediments to the growth of e-commerce in Nigeria. This is so because the entire respondent agreed to this statement.


From the hypothesis tested in the research work, it can be inferred from the result gotten from the testing that the alternative hypothesis (H 1) was accepted, while the null hypothesis (H0) was rejected. This is following the result of the tabulated Chisquare (X2) = 9.488being less than the calculated Chi-square (X2) =19. When the result from the hypothesis tested is thoroughly examined, it can be inferred that e-commerce has economic benefit(s) in Nigeria. Not to forget from the other result also, e-commerce in more or less untapped, and if fully utilized can facilitate rapid and positive economic growth in Nigeria. In the course of the research work, the following findings were made; a) There is an economic benefit in e-commerce in Nigeria b) That e-commerce has high potential of wealth erection in Nigeria. c) Effective utilization of e-commerce will lead to economic growth in Nigeria. d) Government has not done enough to ensure the optimal performance of ecommerce in Nigeria e) Inadequate in formation and improper orientation is an obstacle to ecommerce growth in Nigeria f) Poor security and privacy level are impediments to the growth of ecommerce in Nigeria


g) Electronic commerce has caused a positive affiliate between Nigeria and the developed world. h) E-commerce has not been widely accepted in Nigeria.


CONLUSION Nigeria is yet to accept and access the full potentials of the economics of the ecommerce as a virtual world market for the 21st century in Nigeria, as practically every sector of the country either publics or private sectors are yet to tap out of the numerous potentials of electronic commerce in this 21st century. According to Thomas L. Friedman (The world is flat, 2007), the world is flat is a phrase he uses in terming the leveling of the world into a flat competitive field. This leveling was carried out by the help of e-commerce a vital tool in the 21st century trade. Nations, multi National, individual cannot stand the worlds competition; even globalization cannot be achieved. Nigeria can have a foot in the global economy only if it embraces the unending benefits e-commerce has to offer. Nations like China and India are classified as emerging economy since they took advantage of e-commerce and utilize the potentials. Nigeria can as well do the same so as to move our economy higher, and stand in the competition of in a flatting world.

However if the potentials of e-commerce sector in the country are effectively exploited, Nigeria stands to benefit from an increased Gross Domestic Product (G.D.P) , an improved per capital income and a general rise in the standard of living of over 140 million Nigerians. Therefore, the public and private sector should through combined efforts, participate in the economics of e-commerce as a virtual world market for the 21st century in Nigeria. 5.4 RECOMMENDATIONS: The following are the recommendations by the researcher; a) Government should provide adequate information and proper orientation to its citizens pertaining the viability of e-commerce in Nigeria b) Government should boost the security systems and privacy level so as to encourage both the private and public participation in the economic of ecommerce. c) Government should reduce the present legislation stipulating that businesses wishing to provide internet services must be 70% locally owned, since domestic or locally owned businesses do not have to resources to venture into internet businesses. This can otherwise be referred to as encouraging foreign investment.

d) Government should specify Intellectual property law as there is no specific legislation concerning intellectual property and e-commerce. e) Government should specify basis of taxation on e-transaction as no present tax law in Nigeria has specified account for e-transactions. f) Government should establish an independent regulatory body that will promote the economic of e-commerce in Nigeria.


SUGGESTIONS FOR FURTHER STUDIES: The following topics have been suggested by the researcher for investigation in order to carry out further studies; a) The viability of e-commerce in the Nigeria economy. b) The impact of the Nigeria communication commission as an independent regulatory body that promotes growth in information and communication technologies since the inception in Nigeria. c) E-commerce as an economic tool to repositioning Nigeria in the global economy.



LIMITATIONS The researcher during the research period had some limitations which hindered the researcher during the research, some of them are; i. Collection of the questionnaire from the respondents in due time for the analysis of the data. ii. iii. Transportation from Okija to Lagos for research purpose. Time for the entire project was not sufficient, as academic work was interfering with the research.