Globalization and Value Creation Perspective in E-Commerce in Nigeria

Globalization and Value Creation Perspective in E-Commerce in Nigeria

Nwanolue, B.O.G¹ & Obi Chinenye Blessing²

¹Department of Political Science, Anambra State University, Igbariam Campus, Nigeria

²Department of Political Science Nnamdi Azikiwe University Awka, Nigeria

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8110024

Received: 12 September 2024; Accepted: 20 September 2024; Published: 28 November 2024

ABSTRACT

Globalization has significantly reshaped economic landscapes worldwide, with e-commerce emerging as a critical driver of value creation, particularly in developing economies. The economies of scale that emerge as a result of globalization are meant to encourage sustainable development and value creation like employment. Unfortunately, there tends to be a gap in the waves of globalization and e-commerce transactions in Nigeria due to many factors and the acquaintance of Nigerians with the traditional offline market. This paper aims to explore the impact of globalization on E-commerce in Nigeria as a strategy for sustainable value creation. Through the review of the relevant kinds of literature and empirical data, the study highlights how Nigerian e-commerce platforms have leveraged global networks to enhance product offerings, optimize supply chains, and expand market reach. The study made use of some excerpts of the theory of post-colonial states to buttress the challenges of adoption and implementation of new technologies as faced by the developing nations in their quest to embrace globalization. The findings underscore the importance of embracing globalization while addressing the unique challenges faced by the Nigerian e-commerce industry to ensure sustainable value creation thereby enhancing wider reach, higher transaction rates, bigger profits, and sustainability. Amongst other recommendations, the study projects the need to indigenous technology development that will take cognizance of traditional commerce and blend it into e-commerce to create sustainable value creations in logistics and communication. The paper concludes by discussing the potential of e-commerce as a tool for economic development in Nigeria, emphasizing the need for strategic policies that support local innovation and global competitiveness. It also inferred that E-commerce has the potential to open up vistas of opportunities in the traditional open markets when used strategically.

Keywords: e-commerce, Globalization, Value creation

INTRODUCTION

Since the new millennium, the waves of globalization though unending have spread across the globe more rapidly than anyone could have anticipated. The realization of globalization’s inevitable impacts on man’s socio-economic activities has made it pertinent that nations instead of becoming alienated queue into this wave but with developmental interests and objectives. As opined by the United Nations Conference on Trade and Development (UNCTAD), E-commerce which was a result of globalization and integration of the world economy has advantages in the form of bridging trade gaps between countries, improving faster access to markets, whilst lowering costs UNCTAD (2015). Although there are different perspectives of scholars and policy makers on the effects of globalization on man’s socio-economic activities, the obvious consensus is that the waves seem unstoppable as they have turned out to be major drivers of economic growth and development. Therefore, these impacts that trickle down to other aspects of the economy according to (Adediran et al, 2015) may either widen the gap in development or integrate such an economy into a development process. Following this line of thought, it is pertinent to note that globalization has necessitated value creation in almost all aspects of man’s socioeconomic activity, either in the form of technological advancement or adjusting to the wave it posits. These value creations come in form of the impact, employment, complement technologies, and usage.

Consequently, the effect of globalization have shown that jobs have been massively created and influenced by the internet, internet-enabled devices, and software applications. Added to this rapid wave is that the emergence of technological advancement became a wide convergence of inventions reinforcing one another and advancing societies and economies of the world at large. According to Ezeh, K.D, Ukaegbu C.O, and Amali, A. (2024), this influence of the global market through the rampant use of the internet results in a digitalized market, caused by the ability to gather, and engage great use of ICT and the use of data for economic purposes. In furtherance to this, the creation of value now becomes imperative as data are changed into tech intelligence for economic use. Therefore, these innovations may change some sectors of a given economy more than others. Thus, the influence of globalization on e-commerce goes far beyond production processes, because it is largely accepted that digital platforms are the major influential tools advanced for attaining the 2030 Agenda for Sustainable Development and Africa’s Agenda, 2063 (Diamandis & Kotler, 2020).

Corroborating this, Okorie & Ojomo (2020), observed that the advancement in Information and Communication Technologies (ICTs) have revolutionized business activities enabling new ways of conducting business through electronic means referred to as electronic commerce. According to Rabiu et al (2019), e-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information through computer networks, principally the Internet. Worthy to note is that e-commerce builds on traditional commerce by adding the flexibility and speed offered by electronic medium, thereby facilitating improvement in operations leading to substantial cost savings, as well as increased efficiency and competitiveness through the modification and redesigning of traditional business methods. Through e-commerce technology, the Internet has revolutionized the system of business transactions by providing consumers with the ability to conduct banking transaction, invest, purchase, distribute and services, communicate, explore, and research different products’ information from virtually anywhere, anytime where there is Internet access. Most importantly, it has created electronic markets and provided opportunities for businesses to reach consumers in a very direct way at various levels. Therefore, as a way of establishing a linkage between globalization and e-commerce, the use of technology in integrating the global economy as an online place of marketing and other business transactions makes it imperative for this discourse to be examined. According to Doherty (2010), it is widely known that the internet and all that it involves provide retailers with opportunities to transform their customers’ buying activities.  Therefore, the ability to create value relates directly to how efficient a business model is and how good it is at attracting customers and keeping them. According to Amit & Zott (2001), these values include a strengthened supply chain with reduced supplier costs; Provision of a large array of products and services; Convenience for the customer; Time savings; and Reduced asymmetry of information amongst parties.

Contextualizing it to Nigeria, Ogbo et al (2019) noted that the impact of globalization has made Nigeria incorporate the electronic payment system into its financial system, which has reduced the flow of physical cash in the economy and has also impacted traditional commerce/ Presently, there are about 103.0 million internet users in Nigeria and the internet penetration rate stood at 45.5 percent of the total population at the start of 2024. Kepios analysis of 2022 indicates that internet users in Nigeria increased by 2.2 million (+2.2 percent) between January 2023 and January 2024. Therefore, the increasing number of users of internet in Nigeria indicated that the use of internet in Nigeria is growing rapidly and still has the potential to grow higher. This growth no doubt tends to have significant implications on the issues of globalization and value creation in e-commerce in Nigeria.

Not minding the growth of internet users in Nigeria, the value creation of e-commerce has significantly advanced. This is because data are being stored and converted for economic purposes.  As a result, many online shopping sites are thriving in Nigeria, servicing thousands of searchers every week. Some of them are jumia.com. konga.com, and the hosts of others. Also, banks have almost completely adopted electronic business process which is evident in online and internet banking respectively. These make the transaction process so easy that buyers begin to forget about the open offline market. Following this trend, individuals that have offline shops also tend to bring it online through social media platforms like Instagram, X, WhatsApp, and you tube to create a niche of reaching out and widening the consumer base. This action has advanced traditional commerce to the presence of nomenclatures like vendors, delivery agents, and the use of high-pixel smartphones for advertising. This has also created the need to invest in logistics and transportation.

Worthy to note is that the Traditional retail markets are ubiquitous in Nigeria. According to Nigeria retail sellers’ report (2020), the traditional retail markets are essentially comprised of retailers who sell from the roadside, and from shops in the open markets which play a vital role in African life. They are both an economic necessity for populations that cannot afford the more western retail experience, and a cultural phenomenon that has helped to shape ideas of community for centuries. According to Chiedozie et al (2019) “ . . . the traditional open markets will continue to exist and thrive because those who would continue to patronize them are in the majority, especially with the prevailing high level of unemployment and poverty; while at the same time and with the existing tendency toward upward social mobility, the middle class will continue to expand thereby promoting the existence and expansion of the formal retail sector which is already being regarded as a status symbol. Invariably, the informal markets will continue to thrive, just as the modern shopping malls continue to spring up in the city centers…” (p.4) This is a clear demonstration that the traditional commerce still plays a significant role in present day e-commerce. Therefore, for a sustainable value creation to be created from globalization in Nigeria’s e-commerce sector, there is need for a mixed approach instead of alienation from the traditional commerce.

Despite the prospects of globalization to engender all-inclusive economic development in Nigeria, e-commerce has not been extensively adopted. Many Nigerians still treat its benefits with deep concern largely due to fear of fraud, lack of trust, inefficiencies in the whole system, etc. Given the current business environment in Nigeria, many customers do not believe that e-commerce transactions could be successfully conducted. According to Igwe et al (2020) the proliferation of e-payment platforms and systems including the online presence of businesses, has issued some sense doubt about the effectiveness of e-commerce activities in Nigeria. From this, it is clear that the inherent gap or chasm may not close with the unending waves of globalization. Based on the impending economic benefits of globalization which directly or indirectly affects value creation, it suffices to interrogate the value creation in E-commerce in Nigeria.

Conceptualization and clarification of concepts

E-commerce: The concept E-commerce, or electronic commerce, refers to the buying and selling of goods and services over electronic systems, primarily the internet. In the context of Nigeria, e-commerce has gained substantial attention due to its potential to bridge market gaps, facilitate cross-border transactions, and provide an alternative to the traditional brick-and-mortar retail system. For Ojiakor et al (2012), e-commerce in Nigeria is yet to reach its peak as seen in most developed nations because of the indispensable role traditional commerce plays in our daily businesses. Therefore, though e-commerce in Nigeria is driven by factors such as increased internet penetration, mobile phone usage, and a burgeoning youth population, there is a need to invest positively in transportation, logistics, and security of trading platforms to ensure full adoption of e-commerce in Nigeria.

Globalization: Though globalization has too many definitions by scholars, in its generic sense, Globalization refers to the process by which businesses, ideas, cultures, and technologies become interconnected and interdependent across national borders, often resulting in increased economic, social, and political interactions on a global scale. In Nigeria, globalization has manifested through trade liberalization, the spread of technology, and the increased mobility of people and ideas. While it has offered significant opportunities for growth and development, it has also introduced challenges, particularly concerning economic inequality, cultural preservation, and environmental sustainability. Linking it to e-commerce which is a variable of this discourse, the waves of globalization have engendered the use of the Internet for buying and selling. Therefore, globalization has made e-commerce transactions inevitable.

Value creation: Value creation in e-commerce refers to the process of delivering enhanced benefits to customers, businesses, and stakeholders through online platforms, often leveraging technology, digital infrastructure, and innovation. In Nigeria, the e-commerce industry has grown significantly, driven by factors such as the increasing internet penetration, mobile phone usage, and rising consumer demand for convenience. The value creations that are expected to emerge from the adoption of e-commerce transactions in Nigeria include but are not limited to: Wider Market Reach for Businesses, Logistics, and Payment innovations.

LITERATURE REVIEW

The issue of the impact of globalization on Africa and developing economies has been a subject of many debates and investigations. Many theoretical and empirical studies that interrogate this phenomenon showed that globalization has affected almost all the sectors of the global economy. For instance, the theory of Creative Destruction The theory of Creative Destruction, as propounded by Joseph Schumpeter, that emphasizes the innovative trend that E-commerce presents. According to Schumpeter, as written by Ciborowski (2015), this theory explained the industrial mutation process, which persistently transforms the structure of the economy from within, thereby extinguishing the previous economic order, and ushering in a new one. This theory is relevant to the study, as E-commerce is an evolving trend spontaneously overhauling the traditional model of business and creating a new digital technological model that ensures economic growth and improvements in quality of life. Also taking a cue from the Innovation Diffusion Theory as propounded by Everett Rogers in 1962 on the acceptance of new technologies and its sustainability.  Following this theory, there are existence of Early Adopters and laggards. These categories of individuals show that there are some that can easily adopt these technologies while others become late adopters. Invariably, some may adopt and queue into the e-commerce transaction while others will adopt it lately due to some factors like close acquaintance with the traditional commerce.

According to Ajao et al, (2018) in all ramifications, the development of economies is increasingly influenced by the changing relationship or interaction associated with globalization. In the same vein, Ali et al, (2021), observed that globalization possesses many benefits accruable to nations and peoples who participate in it and in its impact where the state in which the world finds itself today is that of no return but rather adjustment and adaptation. From these two notions, it is obvious to state that globalization is an inevitable phenomenon that has come to stay therein affecting all aspects of the socio-economic activities of man and also advancing in different forms and dimensions.

Retreating the adverse effect of globalization on the developing economies of Africa and Nigeria in Particular, Ojiakor et al. (2012), observed that the trade liberalization and competition induced by globalization offer little or no protection to domestic industries thereby widening the gap and lead to unhealthy competition that ousts indigenous companies out of the market. Citing examples were the textile industries in Nigeria. For Anyanwu (2020), these unintended outcomes happen mainly because the neoliberal agenda leaves little room for selective protection of domestic markets, especially in politically weak developing countries like Nigeria.

However, Qi et al (2020) on the contrary stated that though globalization widens the gap among economies due to some factors, it is also obvious that it has enhanced the development of some economies in many ways such as global integration and e-commerce transactions around the globe. Therefore, though globalization tends to be a double-edged sword, its transformation and effects are dependent on the desired development objective. This conforms, to the reasons why there is the existence of indigenous technologies as well as the banning of some technologies in some countries.

Deducing from the economic dimension of globalization which incorporates e-commerce, He et al (2021), noted that the widespread international movement of goods, capital, services, technology, and information which has in one way or the other enhanced value creations in e-commerce has become imminent. Following the same narrative, Fan (2019), buttresses that, it is in this economic globalization of rising economic integration and interdependence of national, regional, and Indigenous economies across the world through an intensification of the cross-border movement of goods, services, and technologies that economies of the world are built upon. Unfortunately, this wave has become inalienable for countries in international economic relations as it has unintentionally made production, markets, technology, institutions, corporations, and labour integrated into a system known as globalization.

Be that as it may, there are numerous empirical works on how globalization has affected the Nigerian economy. According to Maduka et al. (2017, most of these studies produced conflicting but realistic results. The reasons are not farfetched from the different perspectives of authors and scholars on the phenomena of globalization. For instance, in the study of Onyimba et al (2019), the impact of globalization on economic growth in Nigeria revealed that trade openness and liberalization have significant positive effects on economic growth in Nigeria. On the other hand, financial integration has a negative but insignificant impact on economic growth in Nigeria. Although this study wholistically focused on economic growth and not specifically on one aspect of the economy like e-commerce, one of the reasons for this negative impact was hinged on the existing development gap in technology and its application.  In another study, Oluwole (2014), observed the impact of globalization on the growth process of the Nigerian economy and revealed that Nigeria has not benefitted from globalization owing to her mono-cultural export, failure to attract increased foreign investment and large debt stock. Also, Omolade et al. (2013) that inquired into the link between globalization and economic development of Nigeria found out that trade openness relates negatively to economic development in Nigeria and that trade partners seem to be gaining more than the country, especially the developed trading partners.

From all these cited empirical and other numerous studies, the utilization of globalization to engender economic growth and development is dependent on the enablers and the developmental objectives the nation tends to achieve.  However, as it relates to integration and e-commerce, the study of Nwakanma & Ibe (2014) on the causal relationship between globalization and economic growth shows that there is positive and significant relationship between financial integration, human resource development and trade openness. Worthy to note in this study is the inherent presence of e-commerce in the form of economic integration and openness. E-commerce is seen as a global market integrated into an online platform where buying and selling take place and the value creations therein as a result of other economies of scale like communication, logistics (transportation), and data creation.

Notwithstanding the above empirical studies on globalization and the Nigerian economy, Adediran et al (2015) noted that the measurement of the strength coverage and utilization of e-commerce operations in developing countries like Nigeria requires an assessment of the views of consumers and operators. Although umpteen works have been channeled towards sensitizing the stakeholders on the benefits and dynamics of e-commerce in this era of globalization, Obaseki (2013), noted that “the dawn of e-commerce in the mid-1990s that was seen by many, as the beginning of an entirely radical way of buying goods and services tends to have flaws in inclusive development.

According to Agwu (2014), adopting e-commerce has given nations opportunities to penetrate the international markets. Despite this benefit, Das and Khan, (2016), observed that available literature shows that the level of adoption of e-commerce in developing countries is low because of the challenges. A move towards a cashless economy will enhance the adoption of e-commerce. Recent studies have shown that in Africa, manufacturing values have depreciated. Corroborating this, Lavopa & Szirmai, (2012) and Rodrik, (2016) noted that African manufacturing seems to have stagnated, and declined about services. Thus, the values of homegrown development indices are undermined while the value creation of contracts of new technologies that are not indigenously produced but are imported are emphasized. This impacts negatively on development as it stresses whatever flows from the external and internal economies of scale of such technology. The basis of value creation in e-commerce digital platforms has been argued on whether the most economic benefit should be anchored on innovation platforms or transaction platforms. What is clear is that, without the innovation platforms, there wouldn’t be any transaction platforms either. According to Ferrera and Kessedjian (2019), the innovation platforms enable the creation of third-party applications, services and marketplaces for such apps as Google Play Store, and iOS App Store which create value for third-party application developers and resourcing them to be innovative. Although, internet penetration on the continent has not kept pace with mobile phone diffusion, the World Bank’s development report of 2021 notes that digital dividends, which it describes as “broader development benefits from using these technologies” have not been evenly distributed to benefit all. Everyone, everywhere requires closing the remaining digital divide, especially in internet access. Today, Africans are busy chasing new technologies in a bid to queue in while the creators of these new technologies continue to enjoy the proceeds or values that trickle down from the digitalization process.

According to Khan and Ejike, (2017), e-commerce patronage in Nigeria has been quite low when compared to the developed countries, despite the growth of online shopping ubiquitously. A recent report of Nigeria shows that the growth of e-commerce in 2011 was N49.9 billion and in 2012 it increased to N62.4 billion naira. However, recent studies have shown a rapid and geometric increase. According to the Forbes Africa report of 2022, Nigeria’s e-commerce market is rapidly growing and is projected to generate a revenue of US$7,627 million by the end of 2023, making it the 39th largest e-commerce market globally. Therefore, with a compound annual growth rate of 11.3% (2023-2027), the market is expected to reach a volume of US$11,707 million by 2027.

Unfortunately, Kamer (2022a) noted that this rapid increase is not simultaneous with the value creation in logistics and transportation that e-commerce tends to create. For instance, while buying and selling takes place online, there ought to be a completion of the transaction through the delivery of the actual good to the final consumer. Hence, the issue of logistics, transportation, quality, and consumer satisfaction come into play here.

In another dimension, following the population of the country with over 250 million people and over 130 million active mobile users that are connected to the internet, Anyanwu (2020), is of the opinion that with the rampant use of mobile phones, ipads, laptops, and computers Nigerians can access the internet and shop online. Therefore, with the boom of online companies like Konga, and Jumia, there are prospects of expanding the e-commerce sector for inclusive development. With the increased internet access notwithstanding, Awan et al., (2016), noted that there have been many challenges associated with e-commerce in Nigeria such as making payments for products and services. In a similar vein, Okolie & Ojomo (2020) added that this has made most of the consumers in Nigeria prefer to purchase their products/services directly from vendors where they would rather visit the location where the product/service is being offered and check whatever products/services they are interested in before they negotiate the cost and make payment.

Be that as it may, Huamei (2013) noted that, e-commerce can create opportunities in both local and international markets, especially for small and medium-scale businesses in developing countries like Nigeria and this has a positive effect on economic growth which generates more revenue, employment, and profits. Although on the contrary, Khan et al (2016) noted that doing business electronically is growing in societies of developing countries but it has not adequately engendered all-inclusive economic development.

Buttressing the perspectives of scholars on globalization and e-commerce in developing countries, Igwe et al (2020), noted that most of the research carried out on e-commerce for developing countries has focused on social and legal issues such as privacy, authentication, trust, psychological and cultural barriers, internet access and e-security limiting emphasis on the areas of such as technological infrastructure, policy initiatives, and trust that are affecting the spread of e-commerce which are amongst the value creations associated with it. Qi et al., (2020) added that if sufficient attention is given, e-commerce has the potential to improve productivity and efficiency and will change the way business is done and offer good opportunities for growth in developing countries. Hence, e-commerce has enormous potential that will empower the people in developing countries to be able to overcome obstacles and achieve a viable economy. These potentials are seen in the areas of logistics transportation networks, and communication, amongst others.

Following the above-reviewed literature, though there are several studies that discussed the implementation of e-commerce in Nigeria, but hardly focus on the perspective of operators and the value creation for sustainable economic growth and development. The selection of some of the challenges in the adoption of e-commerce might be determined based on the various issues that are mentioned earlier. Globalization and value creation in e-commerce in Nigeria refers to how the interconnectedness of global markets and the exchange of goods, services, and information across borders have influenced the growth and development of e-commerce in the country. For instance, the issue of economic integration, technology transfer, and cultural exchange. Othe the other hand, Value Creation in E-Commerce ought to be composed of consumer Convenience and Job Creation in logistics, warehousing, digital marketing, and customer service, contributing to Nigeria’s economy.

According to Nwankwo (2020), issues of market access for Small and medium-sized enterprises (SMEs) in Nigeria to benefit from e-commerce by accessing a broader customer base without the need for significant capital investment in physical stores needs to be given utmost attention. This is because this democratization of market access is a significant value creator in financial inclusion and Supply Chain Efficiency. Unfortunately, some factors like infrastructure deficits to adapt to innovation and competition make the value creation in e-commerce to seem unattainable.

METHODOLOGY

This section is informed by the methods used to investigate or interrogate the questions that informed this study. Data were gathered through a documentary method that involves official publications of some companies or organizations like (the African Equity Stock 2020 report), Journals like Elsevier Digital Business Journal, the UN report on the digitalization of economy in Africa, Econstor on African jobs in the digital era, amongst others. The study adopted a qualitative descriptive method of data analysis.

Theoretical Framework of Analysis

The issues of Globalization and value creation in Africa seem new to a significant extent. Hence, it encapsulates the issues of development, job, and wealth creation. Taking a cue from the Marxian political economy paradigm, the study adopted the theory of post-colonial states as postulated by Hamza Alavi (1972). The features of post-colonial states which are not limited to the struggle for economic independence, weak economic and political institutions, use of state apparatus for accumulation of wealth for selfish interests, the struggle for indigenous technology, and the groping inevitable queue into the waves of globalization prompted the adoption of this theory as a framework of analysis. The theory posits that post-colonial African states are not fast rising to the challenges of globalization. Hence in an attempt to queue in, policies on the use of new technologies are emphasized on consumption with little or no emphasis on the values it projects or inadequate inclusive development.

The Nature of e-commerce and Value creations in Nigeria

Numerous factors have contributed to the slow growth of e-commerce in developing countries, especially in Africa. Growth in this context does not refer to the online transactions involved in online shopping, rather it refers to the adoption and the capacity of e-commerce to engender economic development through the creation of other opportunities in logistics, transportation, and other economies of scale that come with its activities.   Many of the studies that have been carried out on the adoption of e-commerce in developing countries have highlighted the problems, which include consumer attitudes, infrastructure, political issues, socio-economic issues, language barriers, and computer illiteracy amongst others (Maduka et al., 2017).

Despite the opportunities presented by globalization, the Nigerian e-commerce sector faces significant challenges. They are not limited to Infrastructure deficiencies, such as unreliable power supply and poor internet connectivity that hinder the seamless operation of online businesses. A survey by the Nigerian Communications Commission (NCC) indicated that only about 42% of the Nigerian population has access to reliable internet, which poses a barrier to e-commerce growth (NCC, 2023). Also, the high cost of logistics, driven by poor road networks and inefficient delivery systems, increases operational costs for e-commerce companies. These challenges are compounded by the issue of trust, as many Nigerian consumers remain skeptical of online transactions due to fears of fraud and poor customer service experiences (Nwankwo, 2023). These factors contribute to the slow adoption of e-commerce among certain demographics in Nigeria.

In addition to the above, Adediji, (2017) observed that in Nigeria, e-commerce literacy levels seem to be low because of lack of awareness. Consequently, the issue of lack of internet awareness hinders the development of e-commerce in Nigeria.  As a result, many people are confined only to e-mail, browsing the web, and chatting on social media. As a result, the low level of awareness of information technology of individuals and organizations is attributed to the limited utilization of e-commerce, which in turn inhibits the means to improve their businesses.

Again, there is the issue of trust problem amongst Nigerian consumers when it comes to e-commerce and value creation in Nigeria. When it comes to e-commerce, trust has a major role to play because it is one of the key drivers for customers’ satisfaction while performing their transactions online. Huamei (2013) pointed out that ‘one of the main issues of online shopping is lack of trust in online purchase’ which has gone to the extent of making a phrase of “what I ordered vs what I got” online. Hence, trust is very crucial in a large community of unidentified merchants and it plays a vital role in motivating consumers to purchase products and services online.

Although the convenience of e-commerce has enabled consumers to access products and services remotely, some researchers have argued that security and privacy threats have restricted the full potential of e-commerce transactions in Nigeria (Agwu et al., 2014). Consequently, many customers have genuine fears about providing their private information to an unknown body over the Internet, and they do not know the way their information will be. This attitude of consumers toward e-commerce is due to fear of fraud and online crime. Thus, these factors have made security and privacy threats one of the serious reasons for the slow growth of e-commerce services in Nigeria.

In furtherance to the challenges, Anyanwu (2020) noted that many researchers have identified the dearth of infrastructural facilities as an obstacle to the growth of e-commerce in Nigeria.  Consequently, as the efficacy of internet services depends on the telecommunication infrastructure of any country, the Nigerian telecommunication sector is faced with fluctuation in service delivery and provisioning.  This inadequacy daunts the effectiveness of carrying out e-commerce.  In addition, Makame et al (2014) noted that for e-commerce applications to succeed, it is not just the necessary infrastructure to be available, but the vital supporting factors such as technology, policy initiatives, and trust are to be established and maintained.

Not minding the limitations, it is obvious that one of the most profound manifestations of globalization is the rise of e-commerce transactions, which has revolutionized how goods and services are exchanged worldwide. In Nigeria, the globalization of e-commerce has followed a unique trajectory, influenced by local factors such as infrastructure, regulatory frameworks, and consumer behavior creating opportunities for economic growth and development.

Despite these challenges, one would not rule out that the globalization of e-commerce in Nigeria presents significant opportunities for value creation. E-commerce platforms have created new avenues for entrepreneurship and job creation. Small and medium-sized enterprises (SMEs) have particularly benefited from the online marketplace, as it offers them access to a larger customer base beyond their immediate geographical location. This has not only boosted their sales but also contributed to the overall growth of the Nigerian economy.

The integration of global best practices in e-commerce has also led to innovations in Nigeria’s retail sector. For example, the use of artificial intelligence (AI) and big data analytics by e-commerce companies has improved customer service, inventory management, and targeted marketing. Moreover, the adoption of digital payment systems, such as mobile money and fintech solutions, is gradually reducing the reliance on COD and enhancing financial inclusion in Nigeria.

Additionally, the globalization of e-commerce has fostered greater competition in the Nigerian market, leading to better quality products and services for consumers. The entry of international e-commerce players has pushed local companies to innovate and improve their offerings, resulting in a more dynamic and competitive marketplace.

CONCLUSION

The globalization of e-commerce in Nigeria is a dynamic process that has transformed the retail landscape and created new opportunities for value creation. While challenges such as inadequate infrastructure and regulatory issues remain, the continued growth of e-commerce in Nigeria is inevitable. With the right policies and investments, Nigeria can harness the power of e-commerce to drive economic growth, create jobs, and improve the quality of life for its citizens. The future of e-commerce in Nigeria is bright, and its trajectory will continue to be shaped by the forces of globalization and technological innovation.

The trajectory of e-commerce in Nigeria is poised for continued growth, driven by the ongoing globalization of the digital economy. This is because, the traditional commerce that is characterized by open market system of physical goods, and warehousing and well as price differences plays important role in the growth and adoption of e-commerce in Nigeria. As infrastructure improves and regulatory frameworks become more robust, the challenges currently facing the sector are likely to diminish. Moreover, the increasing adoption of digital technologies, coupled with the entrepreneurial spirit of Nigerians, will further enhance the value-creation potential of e-commerce.

In the long term, e-commerce could play a pivotal role in diversifying Nigeria’s economy, which has traditionally been reliant on oil. By tapping into the global digital marketplace, Nigeria can leverage its large and youthful population to become a significant player in the global e-commerce ecosystem. However, realizing this potential will require concerted efforts from both the public and private sectors to address the existing challenges and create an enabling environment for e-commerce to thrive.

RECOMMENDATION

Globalization has significantly influenced the growth of e-commerce in Nigeria, providing new opportunities for businesses to reach a broader audience and create value. To further harness the benefits of globalization and enhance value creation in Nigeria’s e-commerce sector, Nigeria should prioritize the expansion and improvement of its digital infrastructure, including internet connectivity, broadband penetration, and mobile network coverage. By ensuring that more Nigerians have reliable and affordable access to the internet, e-commerce platforms can reach a larger audience and enhance customer experiences, driving value creation.

In addition, Nigerian e-commerce platforms should focus on promoting local products and services. Encouraging local content development and supporting small and medium-sized enterprises (SMEs) can drive value creation by tapping into Nigeria’s unique cultural and economic strengths, offering products that resonate with both local and global consumers. This will also help to incorporate traditional commerce into the trends of globalization and e-commerce.

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