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IMPACT OF SECURITY ON E-COMMERCE BUSINESS IN NIGERIA

CHAPTER ONE

INTRPDUCTION

BACKGROUND OF THE STUDY

E-commerce is the use of the internet for marketing, identification, payment and delivery of goods and services. Through the e-commerce technology, the internet has revolutionised the mode of business transactions by providing customers with the ability to bank, invest, purchase, distribute, communicate, explore and research from virtually anywhere, anytime where there is internet access (Anup, 1997; Ayo, Adewoye & Oni, 2011). Economic offers a level playing ground for large businesses, as well as small and medium-scale enterprises (SMEs) to operate in the global marketplace, and for regional businesses and communities to participate in social, economic and cultural networks seamlessly across international boundaries (Mary-Anne, 1988). However, with the paradigm shift in the mode of operation occasioned by the advent of the internet, global corporations now operate with much consistency and at reduced cost of transactions as if the entire world were a single entity. In Nigeria, the internet business is taking on a serious dimension in the country especially within the more commercial states of the nation.

A lot of start-ups are springing up within the cyber space and each one is targeting the over 40 million internet users in the country. At present, Jumia and Konga are the ‘Beasts’ of e-commerce in Nigeria (Babatunde, 2013). In the business-to-business world, buyers previously faced a number of obstacles to getting the best deal: suppliers were distant, research time was scarce, and intermediaries controlled most of the information. Presently, Web-based companies are becoming the new intermediaries, the conduit between producers and buyers. The benefits of e-commerce include customer loyalty, the speed of access, reduced costs of operation, transformation of traditional market chain, acquisition of a niche market, business efficiency, increased automation of process, retained and expanded customer base, enhancing well-being and education of customers. However, the growth of e-commerce in Nigeria is affected by accessibility, privacy and confidentiality, establishing cost, data security, network reliability, credit card threat, citizens’ income and education, authenticity, cyber crime, poor technological infrastructures and fear of inadequate security in online environments (Ayo, 2011).

STATEMENT OF THE PROBLEM

Nigeria in recent times has witnessed an unprecedented level of insecurity. This has made national security threat to be a major issue for the government and has prompted huge allocation of the national budget to security. In order to ameliorate the incidence of crime, the federal government has embarked on criminalization of terrorism by passing the Anti-Terrorism Act in 2011, installation of Computer-based Closed Circuit Television cameras (CCTV) in some parts of the country, enhancement of surveillance as well as investigation of criminal related offences, heightening of physical security measures around the country aimed at deterring or disrupting potential attacks, strengthening of security agencies through the provision of security facilities and the development and broadcast of security tips in mass media (Azazi, 2011). Despite these efforts, the level of insecurity in the country is still high. In addition, Nigeria has consistently ranked low in the Global Peace Index (GPI, 2012), signifying a worsened state of insecurity in the country. Hence, Adagba, et al (2012), Uhunmwuangho and Aluforo (2011) are of the view that the efforts of government have not yielded enough positive result.

OBJECTIVES OF THE STUDY

  1. to examine to benefits of e-commerce in Nigeria and second its challenges.
  2. Also, the study recommends among others the need for adequate publicity on e-commerce with emphasis on e-shopping, e-banking and e-business.

RESEARCH QUESTIONS

  1. What are benefits of e-commerce in Nigeria and second its challenges.
  2. What are the need for adequate publicity on e-commerce with emphasis on e-shopping, e-banking and e-business.

RESEARCH HYPOTHESIS

H0: There is no significant relationship between security and e-commerce business in Nigeria

H1: There is a significant relationship between security and e-commerce business in Nigeria

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