Impact Of E-Commerce On The Nigerian Economy

ABSTRACT
Globalization is a process of creating a global market place in which increasingly all nations are forced to participate . Key elements of this process are interconnection of sovereign nations through trade and capital flow, harmonization of the economic rules that govern relationship between these sovereign nations, creating instructions to support and facilitate dependence and interconnection and creation of a global market place.
The world as we know it is shrinking, thanks to advancing technology and people around the globe are more connected to one another than ever before. As a result, corporate bodies and individuals the world over are finding themselves in a situation where they have to restructure and reposition themselves in order to efficiently utilize global resources and maximize the gains accruable from the delivery of specialized products and professional services via the global market place,the internet.
This method of doing business is termed e-commerce. E-commerce, literally meaning Electronic commerce, has evolved rapidly over the last two decades. It consist primarily of distribution, marketing, buying and selling of products or services and transfer of funds over electronic system such as the internet. It also covers a wide range of business from consumer-based retail sites, through auction and music sites, and corporate sites for business exchanges.
CHAPTER ONE
INTRODUCTION
Background to the study
E-commerce refers to the use of communications technology particularly the Internet to buy, sell and market goods and services to customers. The Internet has brought about a fundamental shift in national economies that are isolated from each other by barriers to cross-border trade and investment; isolated by distance, time zones and language; and isolated by national difference in government regulations, culture and business systems (Mohammad, 2004). E-commerce offers a level playing ground for large businesses, as well as small and medium-scale enterprises (SMEs) to operate in the global market-place; and for regional businesses and communities to participate in social, economic and cultural networks seamlessly across international boundaries (Mary-Anne, 1998). It equally fosters direct access to distant markets and promotes globalization of commercial activities; and blurs many of the current distinctions between domestic and foreign companies to an extent that it becomes practically impossible to determine the origin of products (Georges, 1997). Hitherto, multinationals that operated in a number of countries had to adjust their products and services to accommodate the diverse operating environments at a relatively high cost, which the virtual marketplace has reduced.
Statement of research problem
The electronic payment system is a major pre-requisite for e-commerce implementation, but the Nigerian economy is largely cash-based with over 90% of funds in circulation. Thus payment for goods and services is mostly by cash due to reasons largely attributed to ignorance, illiteracy and lack of adequate infrastructure to guarantee availability and security of transactions (Ojo 2004, Ovia 2002, and Bickersteth 2005). Other factors that are responsible for the low level of e-commerce participation is the image problem (Olesin 2006, and Ezeoha 2006a). Payment cards with origin from Nigeria are rejected outside because of the level of Internet fraud and Advance Fee Fraud known as 419.
Research questions
For the purpose of this project, the following research questions are posed:
(i) What type of relationship exist between globalization and e-commerce?
(ii) What impact has globalization had on the Nigerian economy?
(iii) Has globalization actually improved the trade relationship between Nigeria and other countries?
(iv) How can development be ushered in (economic development) using e- commerce?
(v) What are the factors combating against e-commerce in Nigeria?
Objectives of study
The main Objective of this study is to investigate the impact of E-commerce on the Nigerian economy
The specific purpose is thus:
• To examine profound implications of globalization for Nigerian economy.
• To examine the impact of international integration of market for goods, services and capital.
• To analyse how development can be ushered in that is economic development through the use of e-commerce.
RESEARCH QUESTIONS
For the purpose of this project, the following research questions are posed:
(vi) What type of relationship exist between globalization and e-commerce?
(vii) What impact has globalization had on the Nigerian economy?
(viii) Has globalization actually improved the trade relationship between Nigeria and other countries?
(ix) How can development be ushered in (economic development) using e- commerce?
(x) What are the factors combating against e-commerce in Nigeria?
Significance of study
The researcher firmly believes that the result of this research work will enable Nigerian policy makers, to know that globalization is inescapable, and why we must have a proper vision of its consequence and understand how we would take advantages of its opportunities.
The study will help to show the gains that a country can achieve by engaging in e- commerce.
This study will critically distinguish the present term of globalization from the earlier globalization process.
The research study will show the process through which development can be ushered in with the use of e-commerce. The study will serve as a reference material for future and further researchers in this field of study and tends to expand the horizon of existing knowledge to a frontier.
1.5 METHODOLOGY
Sources and method of data collection
In this research work, qualitative method of inquiry was adapted,which relies on the use of secondary data. The information that served the basis of my analysis was sourced from books, periodicals, journals, internet daily’s and other relevant official records and documents from business organizations (industries and companies). The research reviewed scholarly literature on the topic of study