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The document discusses the role of Nigerian libraries in the context of e-commerce and the digital economy, highlighting the challenges and opportunities they face. It outlines the evolution of e-commerce, its impact on library services, and the slow adoption of these practices in Nigeria due to infrastructural, socio-cultural, and economic barriers. The study aims to define e-commerce, explore its relevance to libraries, and identify strategies for enhancing e-commerce applications within Nigerian academic libraries.

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The document discusses the role of Nigerian libraries in the context of e-commerce and the digital economy, highlighting the challenges and opportunities they face. It outlines the evolution of e-commerce, its impact on library services, and the slow adoption of these practices in Nigeria due to infrastructural, socio-cultural, and economic barriers. The study aims to define e-commerce, explore its relevance to libraries, and identify strategies for enhancing e-commerce applications within Nigerian academic libraries.

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University of Nebraska - Lincoln

DigitalCommons@University of Nebraska - Lincoln

Library Philosophy and Practice (e-journal) Libraries at University of Nebraska-Lincoln

January 2024

E-commerce and the Digital Economy: The Place of Nigerian


Libraries
Rebecca Chidimma Ojobor Dr.
Department of Library and Information Science, University of Nigeria, Nsukka, Nigeria,
[email protected]

Scholastica C. Ukwoma Dr.


Department of Library and Information Science, University of Nigeria, Nsukka, Nigeria,
[email protected]

Victoria N. Okafor Prof.


Department of Library and Information Science, University of Nigeria, Nsukka, Nigeria,
[email protected]

Follow this and additional works at: https://digitalcommons.unl.edu/libphilprac

Part of the Scholarly Communication Commons

Ojobor, Rebecca Chidimma Dr.; Ukwoma, Scholastica C. Dr.; and Okafor, Victoria N. Prof., "E-commerce
and the Digital Economy: The Place of Nigerian Libraries" (2024). Library Philosophy and Practice (e-
journal). 8005.
https://digitalcommons.unl.edu/libphilprac/8005
E-commerce and the Digital Economy: The Place of Nigerian Libraries

Introduction

The Information Technology Revolution, which gave rise to the digital economy, has spurred

advancements in all fields of human endeavour and promoted the use of numerous marketing

strategies around the world. The terms "Web Economy," "Internet Economy," and "Online

Economy" are also used to describe the digital economy. It is an economy where transactions

between people take place over electronic networking and numerous online platforms

(Gazieva et al, 2021). According to the authors’ the digital economy has a similar structure to

the global physical economy but with quite different processes and strategies. The digital

economy includes all components and participants of digital value. This field of economy is

comprised of and affected directly by certain factors such as multi-media agencies, e-

commerce, interactive online marketing, mobile solutions providers, games developers, and

social media providers. In the context of the study, the emphasis will be on e-commerce.

The term "e-commerce" stands for "electronic commerce," and it refers to the process

of buying and selling products and services as well as conducting business over the

"electronic network" (Mentsiev et al., 2019). E-commerce is the term for the digital exchange

of any goods, services, or information with the aid of global networks, enabling parties all

over the world to communicate with one another (Boßerhoff & Decken, 2022). It is a

marketing practice in which two or more individuals from one or more nations exchange

electronic goods and services using internet-connected devices. It is also known as the

promotion and sale of goods and services over the Internet in electronic settings (Khan,

2014).

The characteristics of e-commerce include but are not limited to internet

advertisement, online marketing, online transactions, social media networking, online


business platforms, online customers and customer service, telecommunication, and

telemarketing. According to Mueller (2017) the aforementioned features of e-commerce

directly influence the digital economy as the speed of growth and development of the

variables determines growth in the digital economy. Pan, etal, (2021) note that the elements

of the digital economy will be more highlighted in the development of e-commerce, and e-

commerce will become an indispensable part of the development of the digital economy;

hence e-commerce and the digital economy are interlinked.

As the entire world is becoming more and more dependent on technology making it

more responsive to the growing digital economy, e-commerce becomes a global issue and a

basic standard for marketing organizational products. The origin of e-commerce according to

Zwass (2003) dates back to 1948–1949 when suppliers and their corporate clients used telex

to exchange documents-like orders and invoices. The system was in place for many decades

until the publication of the first general standard in 1975 which resulted in the Electronic

Data Exchange (EDI). The electronic data exchange (EDI) standard was adaptable and

supported a vast majority of computer-based electronic transactions. However, the majority

of e-commerce moved online with the widespread adoption of the Internet, the launch of the

World Wide Web in 1991, and the first browser for accessing it in 1993.

From 1995 onward, the growth of the internet rapidly boosted the application of e-

commerce in industrialized nations, whereas developing countries like Nigeria utilized it less

frequently (Boßerhoff & Decken, 2022). According to the Ministry of Communication

Technology (2012), Nigeria had only 200,000 internet users in 1999. However, the

government created a number of policies in an effort to increase internet usage and promote

e-commerce in the country, including the National Technology Policy in 2000, which had as

its goal "to make Nigeria an IT capable country" and significantly improve areas like

education, wealth creation, poverty eradication, job creation, and global competitiveness.
The National Information Technology Development Agency was also founded by the

government in 2007 with the goal of increasing internet usage across the country and creating

rules for it (NITDA, 2007).

Despite all of the government's efforts, the country still struggles to have a reliable,

internet connection, which is required for conducting e-commerce. Khan (2014) confirmed

that the adoption and practice of e-commerce in Nigeria is still very slow and this has

adversely affected academic libraries in the country. Library’s slothfulness in e-commerce

practices may endanger its significance not only to the information seekers but also to the

educational progress of the country. The sudden outbreak of COVID-19 epidemic badly

affected Nigerian educational sector; while online educational services continued in

industrialized countries the majority of schools and libraries in Nigeria were totally

shutdown. Hence the paper examines the place of Nigerian academic libraries in e-commerce

implementation in the digital economy; with specific reference to determining the limiting

factors to e-commerce practices and x-raying the strategies for improved e-commerce

applications in Nigerian libraries.

Objectives of the Study

1. Define the concept of e-commerce

2. Highlight e-commerce as it relates to the library

3. Highlight the impact of e-commerce on libraries

4. Explore the challenges to e-commerce implementation in Nigerian libraries.

Concept of E-Commerce

The improvement and growth of Internet technology over several decades have resulted in

what is today known as the web economy and e-commerce has evolved into a vital channel

for many transactions (Turban et al., 2018). According to Ogundele (2018), e-commerce

refers to commercial operations based on the processing and exchange of digital data, such as
text, voice, and visual pictures, which ultimately leads to a value exchange through

telecommunications networks. Ibanga (2017) categorises e-commerce into two: e-

merchandise and e-finance. E-finance refers to the use of technology, including the internet,

to conduct a transaction involving banking, insurance, financial service, use of debit cards,

smartcards, telephone and internet, and mortgages. E-merchandise entails the selling of goods

and services using the electronic process and transferring goods through distribution

channels, such as clothes, hardware, travel, book, flower groceries, tickets, music, or gifts.

However, the two categories of e-commerce can occur in a variety of forms, including but not

limited to business-to-business (B2B), business-to-consumer (B2C), and consumer-to-

consumer (C2C) (Schneider, 2016). Schneider explained that in B2B commerce,

organizations offer products or services to other companies. For instance, when Microsoft

sells its software to Volkswagen, the transaction is referred to as B2B trade. The author

further explained that B2C commerce happens when "business organizations sell products or

services to individual customers whereas C2C commerce takes place when people trade

goods and services online; this type of online commerce offers a marketplace where anybody

may sell and buy goods.

E-Commerce and the Library

The digital era is characterized by a global revolution in information technology

resulting in great changes in the mode of information flow in the knowledge society.

Recently the majority of the information appears in digital form; and is rapidly replacing the

traditional printed form, demanding for reformation in library services and operations. E-

commerce is an ongoing global trend and hence inevitable in library practices. The need for

e-commerce in libraries becomes imperative as the advancement in internet and computer

technology greatly influences the information-seeking behavior of library patrons resulting in

an increasing preference for online resources. According to Pan et al. (2021) e-commerce is
essential for every existing organization, including the library, in order to maintain its

relevance in the digital era. The library's inclusion in e-commerce applications in the current

digital era is essential to the knowledge growth of its user community because it serves a

range of people with different information demands.

According to Smith (2003) one of the earliest examples of online marketing of

organizational products was the online library catalogues that were made accessible via the

Internet in the late 1980s. Since then the number of e-services available for delivering

information over the internet is continuously increasing. By using e-commerce models, for

example, the buying and selling of information, products and services via the internet, and

developing new models, libraries are well placed to promote their own successful futures

(Lothar, 2006). Kumbar and Mulla (2014) outlined e-acquisition, e-vendors, e-learning, e-

help desk, and e-catalogue as some library operations where e-commerce application is

gradually practised. This agrees with the view of Singh (2018) that information dissemination

has presently been fine-tuned in the new environment by the library and information science

(LIS) professionals. Gazieva et al., (2021) emphasize that the use of various social media

platforms such as Facebook, Instagram, WhatsApp, and SnapChat, in library services is other

instance of e-commerce in library.

As patrons grow accustomed to various virtual transactions and the technology for

participation on the internet becomes widely available, the provision of value-added services,

like online reference, e-reserves, and WiFi networking, further contribute to the transactions

and services typically offered by libraries. Such services and transactions according to

Lothar (2006) use an e-commerce model for efficient functioning; therefore, it can be argued

that libraries must keep abreast of new models of e-commerce to provide relevant services

and develop input where necessary, so as to predict changes and suitably adapt their way of

interacting and transacting online, whether it is free fee service or cost-recovery. Such is the
competitive nature of the World Wide Web that libraries are being challenged to demonstrate

their value.

Impact of E-Commerce on Libraries

The advent of information and computer technology and the adoption of e-commerce

techniques have to a great extent improved information service delivery and enhanced the

reputation of the library and library professionals. The advantages of e-commerce in

organizational practices outweigh the disadvantages (Okolie & Ojomo, 2020). It enables the

dissemination of library resources without physical opening and closing hour’s limits, making

library materials accessible to customers around-the-clock. Given that e-commerce allows

consumers to access library materials at their convenience, Singh (2018) acknowledged that

information dissemination has currently been improved in the new environment. Utilization

of social media in library functions is a great opportunity for the library to lessen the complex

burden of decreasing budgets as it requires no or minimum financial input to reach a wide

audience (Huang & Chang, 2019). Additionally, the ease of transactions made possible by e-

commerce via the e-payment platform has made it easier for libraries to subscribe to

databases and reduced the risk of carrying cash when purchasing library resources. With e-

commerce acting as the driving force, the creation of library websites becomes another

paradigm in the digital economy. Using the library's Universal Resource Locator (URL)

address, the library website offers online users both within and outside the building broad

access to electronic information resources, specifically the Institutional Repository (IR).

According to Umar and Yakubu (2018), e-commerce applications have made it simpler to

adopt and implement IR, an institution's digital system for organizing and storing digital

content. IR enables present and future academics to access the intellectual resources created

by members of their institutions. Despite all these benefits, the implementation of e-

commerce in libraries is extremely slow in a developing nation like Nigeria (Khan, 2014).
Challenges to E-Commerce Implementation in Nigerian Libraries

E-commerce adoption and practice in libraries, specifically libraries in developing countries,

is relatively slow for a variety of reasons. Lawrence and Tar (2010) identified four categories

of impediments to e-commerce adoption and implementation in developing countries which

include but are not limited to infrastructural limitations, socio-cultural hurdles, socio-

economic barriers, and lack of government policy and support. These four categories of

impediments will guide the discussion under this sub-section.

Infrastructural limitations to e-commerce practices in libraries

This category according to Lawrence and Tar (2010), include access to technology

(computers, connectivity, and Internet gateways), constrained bandwidth, which reduces the

ability to handle audio and graphic data, inadequate telecommunication facilities (the

majority of which are still analogue and can only transmit voice), and unstable electricity

supply. These barriers are prominent in Nigeria because of the lack of appropriate IT

education (in schools and organizational sectors), perceived to be a reason why the potential

value of computers and the Internet as a means to participate in e-commerce is not

appreciated. A good number of library patrons in the nation lack the basic ICT skills to

operate the computer and access the internet. Poor ICT skill consequently precludes

customers from navigating freely and exchanging transactions in the digital environment.

Nwachukwu and Asom (2015) posit that a low level of ICT skill among patrons of Nigerian

university libraries leads to inadequate use of the meager telecommunication facilities

available. In addition, the high cost of computer equipment is seen as one of the barriers to

the wide use of computers. Without computers, one cannot talk about Internet access. The

lack of computers at the individual as well as at the organizational level, therefore, becomes a

major barrier to accessing the Internet and participating in e-commerce (Lawrence and Tar
(2010). The potential benefits of using electronic commerce may become disadvantages in

the absence of sufficient fundamental infrastructure and required skills. Besides, limited

bandwidth in Nigeria is another significant infrastructural limitation to the adoption and

implementation of e-commerce in libraries in the country. The country's position in terms of

broadband penetration was disclosed by the 2019 Global Connection Index (GCI) ranking.

Nigeria was below the world average in the exercise, which gave the nation a 75th-place

ranking. In view of this, Zubairu et al., (2020) argued that the broadband penetration of

Nigeria is not comparable to that of other industrialized countries. The narrow bandwidths

given by many internet service providers (ISPs) in most developing nations like Nigeria as a

result of outdated and unstable telephone lines or intermittent power supply lead to low

connections. Folorunso et al (2006) confirmed that few Internet Service Providers exist, and

those offering Internet services often offer subpar services , causing most users to spend the

majority of their time accessing the Internet without signals. A survey conducted by John

and James (2017) revealed that only about one-third of libraries have broadband services that

frequently or never satisfy the demands of their users.

Socio-cultural barriers to e-commerce practices in libraries

This is another truculent issue to the adoption and implementation of e-commerce in

Nigerian libraries. Societies are characterized and differentiated by their socio-cultural

factors that influence feelings, attitudes, values, thoughts, beliefs, interactions, and behaviors

of individual groups. According to (Lawrence & Tar, 2010) the social and cultural

characteristics of most developing countries and the concepts associated with online

transactions pose a much greater challenge and act as a major barrier to the adoption and

diffusion of e-commerce. The authors identified the level of trust in institutions, shopping as

a social place, limitation on personal contact and language/content as the most pressing socio-

cultural barriers hindering e-commerce adoption in most organizations in developing


countries. In their study, Ajao et al., (2018) found that even employees of e-commerce

enterprises in Nigeria occasionally lacked the necessary understanding, making it even more

challenging to create e-commerce awareness to clients. E-commerce awareness is of four

phases -unawareness, building trust, confirming trust, and maintaining trust all of which are

fundamental skills to familiarize people with the ethics of e-commerce practice.

Unfortunately, Nigeria faces difficulties in each of the four phases of e-commerce awareness

(Boßerhoff & Decken, 2022). Yeboah et al, (2020) stress that since online transactions are

carried out via a mobile network and involve electronic payment systems, and may happen

between anonymous parties, trust is a crucial adoption enabler in the context of e-commerce

deployment and requires careful consideration. However, the problem of trust gets difficult

in Nigeria where many people act confident rather than being confident. The issues brought

on by a lack of trust have kept many people and organizations away from Internet

transactions. The majority of libraries have been reluctant to adopt e-commerce because they

would insist on getting and inspecting the resources before making a payment out of concern

that certain vendors would deceive them into providing inferior goods. As a result,

subscriptions to databases and the acquisition of online resources are occasionally hampered

by a lack of transactional confidence. Folorunso et al., (2006) opine that in an effort to

attract more customers, many vendors and organizations in Nigeria only offer attractive

websites while producing low-quality items and rendering low-quality services. Although

vendors do in fact provide essential infrastructural items and electronic resources that assist

libraries in serving their patrons, at what cost is it to users’ privacy? Owing to the openness

and accessibility of the Internet, the protection of personal data has been a constant source of

concern for Internet users and consequently has remained a threat to e-commerce

participation (Rachna & Singh, 2013). The ease with which consumers' private information,

their online browsing and transaction details can be collected online and the possibility of
such information being misused makes many organizations in the country reluctant to divulge

their personal information (Leo, 2004). To this end, Davi (2021) affirms that lack of trust is

the most pervasive and expensive issue with Internet transactions.

Socio-economic barriers to e-commerce practices in libraries

Nigeria as a developing nation is faced with a number of socio-economic barriers which

include but not limited to poor economic condition, poor educational system, poor payment

systems and poor distribution systems. The library is not an exception to how these issues

affect her citizens and companies in embracing and implementing e-commerce. The fiscal

situation of Nigerian libraries is widely regarded to be a major obstacle to the adoption of e-

commerce. The library operates on a 10% funding allocation from the government and is a

non-profit making institution. Khan (2014) maintained that the library as a non-profit

making organization could not afford to put up an enabling environment that is flexible

enough to accommodate electronic services. Due to their financial hardships, many libraries

across the nation are unlikely to participate fully in e-commerce because it depends on certain

technological infrastructures that they cannot afford. Despite recent reductions in the upfront

and continuing costs of Internet connectivity, finance remains a significant barrier to the

adoption of e-commerce in Nigerian libraries.

Moreover, the growth of e-commerce in developing nations depends on an institutional

setting that supports the establishment of transactional integrity as regards payment systems

(Oxley & Yeung, 2001). Reliable and secured payment channels such as credit, debit, or

smart cards as well as e-currencies will promote the growth of e-commerce in a nation. A

dependable and safe means of payment will enhance the distribution and delivery of goods

ordered online to the customer, whether they are delivered digitally or physically. However,

Nigeria's poor payment system consistently makes it challenging for the country to conduct

online business. Recently, Nigeria embarked on a redesigning of the Naira notes. This was
not only badly timed but it also entailed that most individuals had to adopt electronic

payments ultimately resulting in horrendous experiences for the public. Currently, the nation

is experiencing a high fiscal deficit, high inflation, high unemployment, underemployment,

high youth unemployment, and a slowing GDP (Ndukwe, 2023). The problems associated

with Internet payment are in relation to the inability of the Internet to guarantee the safety of

such payments and the possibility of duplicating payments since a computer could potentially

become a forger of digital banknotes (Rachna & Singh, 2013). These obstacles restrict e-

commerce across all organizations in the nation, including libraries.

Lack of government policy and support

The last but the least among the detrimental factors to e-commerce transactions in

Nigerian libraries is the lack of government policy and support. The government's dedication

to and involvement in the provision of Internet services, together with the elimination of

import duties, would lower costs, making equipment more accessible and promoting Internet

usage and hence give room for e-commerce practices. Lawrence and Tar (2010) support the

view that the development of an environment for the widespread use of the Internet in many

sectors of developing countries is seen to depend on government policy. Furthermore, the

authors reported that in the majority of developing nations, neither a comprehensive

information policy nor a government strategy for Internet access or e-commerce is in place.

Ogundele (2018) confirmed that there are currently no specific laws on e-commerce in

Nigeria, however, there exist some scanty provisions of the law, but they have not addressed

the salient issues surrounding it.

Conclusion and Recommendations

The study concludes that e-commerce is a necessary component of the digital economy. It

has altered many organizations' strategies and priorities, including libraries. E-commerce has
changed how people traditionally view librarianship by making it more engaging, alluring,

and motivating. Libraries are now more innovative in their practices thanks to e-commerce's

enlightenment. However, due to various noted difficulties, e-commerce adoption and

implementation are still limited in Nigeria libraries. Hence, the study offers the following

recommendations for enhancing e-commerce in Nigerian libraries.

• Improved library funding: Improved funding is the key to success in all organizations

including the library. The financial state of an organization determines the

organization’s readiness for the adoption and implementation of innovations such as

e-commerce.

• Improved ICT infrastructure in Nigerian libraries. Functional and updated ICT

facilities will address the issue of low broadband connectivity and improve e-

commerce practices in the country.

• Organizing training to ensure that library patrons are acquainted with the basic skills

for access and use of emerging technologies is also necessary.

Enlightenment of the masses on e-commerce practices is also crucial to enable the

masses to understand the four phrases of e-commerce awareness which according to

Boßerhoff and Decken, (2022) are essential for a sustainable e-commerce structure in

a nation

• Young librarians should also seek and search for free online training to equip them with

the skills and what it entails to do e-commerce library services.

• There is a need for the government to have policy and support for e-commerce in

Nigeria by reducing taxes for internet providers so that they can provide adequate free

Internet for those who want to get involved in e-commerce.


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