THE ECONOMIC OF E-COMMERCE AS A VIRTUAL WORLD MARKET IN THE 21ST CENTURY IN NIGERIA

BY: EKELE IDACHABA GIDEON EC/2005/226

A Bsc. PROJECT SUBMITTED TO THE DEPARTMENT OF ECONOMICS, FACULTY OF SOCIAL SCIENCE

MADONNA UNIVERSITY, OKIJA ANAMBRA STATE, NIGERIA

AUGUST 2009

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

Signature/Date

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

Signature/Date

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

Signature/Date

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

Signature/Date

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 economic 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 economic 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 economic 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.

TABLES OF CONTENTS Title page Certification Approval Dedication Acknowledgement Abstract Table of Content i ii iii iv v vi

CHAPTER ONE:
1.1 Background of the study 1.2 Statement of the problem 1.3 Objectives of the study 1.4 Research questions 1.5 Statement of Hypothesis 1.6 Significance of study 1.7 Delimitation/Scope of study 1.8 Assumption of study

1 4 5 6 6 7 7 8

CHAPTER TWO LITERATURE REVIEW 2.1 Introduction 9

2.2 Definition of electronic commerce 2.3 Types of e-commerce 2.4 Electronic commerce over local businesses 2.5 Electronic commerce in Nigeria 2.6 Mobile commerce in the Nigeria banking sector 2.7 Electronic commerce in the Aviation sector 2.8 Electronic commerce in the business sector 2.9 Problems associated with the development of e-commerce

13 16 20 22 27 31 33 34

CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction 3.1 Research design 3.2 Area of study 3.3 Population of the study 3.4 Sampling and sampling technique 3.5 Instruments of data collection 3.6 Validity and reliability of instruments 3.7 Administration of the instruments 3.8 Method of data analysis 38 38 39 39 40 40 41 41 41

CHAPTER FOUR 4.1 Data presentation and analysis 4.2 Test of hypothesis 43 54

CHAPTER FIVE SUMMARY, DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of findings 5.2 Discussion of findings 5.3 Conclusion 5.4 Recommendations 5.5 Suggestions for further studies 5.6 Limitations 57 58 60 61 62 63

REFERENCES APPENDIX

LIST OF TABLES 2.7 Performance of e-commerce 2.6.1 Performance of e-commerce in the banking sector 4.1 Administration of Questionnaire 4.2 Sex of respondents 4.3 Age of respondents 4.4 Employment qualification 4.5 Nature of business/ employment 4.6 Frequency distribution of respondents 4.7 Frequency distribution of respondents 4.8 Frequency distribution of respondents 4.9 Frequency distribution of respondents 4.10 Frequency distribution of respondents 4.11 Frequency distribution of respondents 4.12 Frequency distribution of respondents 4.13 Frequency distribution of respondents 4.14 Frequency distribution of respondents 4.15 Reproduced hypothesis 32 30 43 44 44 45 46 47 48 48 49 50 50 51 52 52 54

REFERENCES Akomolede, T.I. (2008): contemporary legal issues in electronic commerce in Nigeria. Potchefstroom electronic law journal (3): 219. Awe, O.G. and Folarunso, O. (2006): Factors affection the adoption of ecommerce: A case study of Nigeria. Journal of applied science 6 (10): 2224-2230. Bali, O. (2002): Information technology and the law: Legal digest publishing. Belenger, F., Hiller, J.S., and Smith, W.J. (2002): Trust worthy in electronic commerce: The role of privacy, security and site attribute. Journal for strategic information system (1): 20-28. Chaffey, D. (2003): e-business and e-commerce management. 2nd edition. Prentice hall. Harlow. Clauda, I., Loftis, L., and Geiger, J.G. (2001): Building the consumer centric enterprise. New York: New York publishers. Cloi, S. Y, Stahl, D.O, and Whinston, A.B. (1997): The economics of ecommerce. London: Addison Wesley publishers. Coppel, J. (2008): e-commerce: Impact and policy challenges. Texas: Bridge home press. Davidow, C. and Malone (1998): Overview of e-commerce and globalization. New Jersey: Max parley press.

Kalatoka and Whinston (1999): e-commerce a managers guide. 3rd edition. Scribd e-library: scribd.com. Leo, R.V. (2004): Predicting customers intervention to use online shopping: case study if an augmented technology acceptance model. Princeton studies on e-commerce: No.20 Princeton, New Jersey. Monster commerce: e-commerce tutorial: business-to-business ecommerce: http://www.monstercommerce.com/e-

commerce_tutorial/b_b/0240.html. Motch, K. (1999, August 16th): electronic commerce: New York Times: pp5, 8. Oladitoye, O. (2004): cyber security and e-commerce:

http://www.ede.org/glg/gkd/2004/sep/0705.html. Rowley, J. (2002): Synergy and strategy in e-commerce. Journal of marketing intelligence and planning (20): 215-220 Samque, G. (2009): South Africa and e-commerce: the case study on the South Africa ports authority: www.snpa.org Steinfield and Klein (1999, august 16th): electronic commerce: New York Times: pp10, 8. Steinfield, Maher and Bauer (1999): Growth of electronic commerce: California: itches and curves publishers

The Economist (2006, December 7th): Performance of e-commerce in Nigeria: the Economist: pp100, 102. Tope (2000, August 10th): Nigerias 21st century Air service: Time magazine: pp16, 20. U.S Government (2009, June 26th): electronic commerce and U.S export trade; export portal: http://www.export.gov. Zwass, V. (1996): Electronic commerce structure and issues.

International journal of electronic commerce (1): 3-23.

Department of Economics, Faculty of Social Science, Madonna University, P.M.B 407 Okija, Ihiala L.G.A., Anambra State th 6 of July, 2009. Dear Respondent, I am a final year student of the Economics Department of the above mentioned tertiary Institution. I am currently undertaking a research work on The economic of ecommerce as a virtual world market in the 21st century in Nigeria. In view of the above, I have attached a questionnaire which requires your objective response, as the information you supply will be of immense help in achieving the goal of the research work. Please note that your unbiased response and clarity is highly solicited. I promise that the information supplied by you will be treated in strict confidentiality Yours faithfully Ekele Idachaba Gideon

QUESTIONNAIRE PROJECT TOPIC: The economic of e-commerce as a virtual world market in the 21st century in Nigeria. INTRODUCTION: The questionnaire will be in 2 parts. Part A will contain your personal information, while Part B will be on the project in question. Please for clarity purpose; tick the response. PART A: I. II.
III.

box column that best satisfies your

Sex: Male

Female Married 25<35 years 35<45 years

Marital status: Single Age: Below 25 45 years and above

IV.

Employment qualification: Unemployed Employed

self employed

V.

Nature of Business/ Employment: Service provision buying and selling Others

PART B: VI. E-commerce has high potential in wealth creation in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

VII.

E-commerce is performing optimally in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

VIII.

Effective utilization of e-commerce will lead to economic growth in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

IX.

There is an economic benefit in e-commerce in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

X.

E-commerce has been widely accepted in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

XI.

Government has done enough to ensure the optimal performance of e-commerce in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

XII.

Inadequate information and improper orientation is an obstacle to e-commerce growth in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

XIII.

The poor security and privacy level are impediment to the growth of e-commerce in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

XIV.

Private sector participation in e-commerce is scarce in Nigeria

Strongly agree Agree

Strongly disagree

Disagree

XV.

E-commerce has caused a positive affiliate between Nigeria and the developed world

Strongly agree Agree

Strongly disagree

Disagree