E-Commerce in Nigeria: Benefits and Challenges

E-commerce activities in Nigeria are rapidly growing as a result of vast improvements in telecommunication services. And e-banking is one area of e-commerce that has proven successful in Nigeria. The growth of internet users from year 2000 to 2019 is sporadic as it recorded 73% growth rates. This study explores the benefits of e-commerce and the challenges of e-commerce that inhibit its successful operation in Nigeria. Survey research was adopted for this study. The questionnaire was designed and administered randomly to 1200 respondents. Collected data were analysed using Statistical Package for Social Science (SPSS). The findings indicate that the major benefits of e-commerce adoption in Nigeria are increased sales, competitive advantage, customer loyalty, increased automation of processes, extended application of new technology, better knowledge management, and enhanced well-being and education of customer. The key challenges identified in the Nigerian context include power outages and frequent power interruption, insecurity, technology cost, lack of trust in web retailers, software compatibility, and acquisition of IT skilled personnel. The study recommends, among other issues, the need for adequate publicity on e-commerce with emphasis on e-shopping, e-banking, and e-business.