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TopBackground: Nigeria
The Federal Republic of Nigeria, located in the West African hemisphere, is a former British colony that secured independence in 1960 (see country profile in Table 2 of the Appendix). As Africa’s largest oil exporter, crude oil sales attribute over 75% income; hence, crude oil price volatility impacts foreign currency earnings and economic stability. This affects exchange rates and currency stability; capital market and foreign direct investments (FDI); prices and production; savings and external reserves and debts. With nominal gross domestic product (GDP) estimated at $510 billion, comprising key sectors: agriculture (23.96%), industry (25.22%) and services (50.22%). The corresponding GDP per capita is about $2,689. In spite of its resources, Nigeria’s infrastructure is 20-25% of GDP and grossly inadequate. Critical areas include energy, transport and postal services.
Key Terms in this Chapter
Electronic (e) Commerce: The range of electronic commercial transactions and interactions conducted over the Internet. E-commerce sites usually provide one-to-many services.
Electronic (e) Marketplace: A many-to-many e-commerce site.
Emerging Market: An economy classification representing countries with low to middle per capita income. Emerging market countries are increasing productive capacity towards advanced economies. Also known as emerging economy or developing country.
Business model: A business design tool describing attributes required to produce and deliver value propositions. Includes target customers, infrastructure, valued attributes of the offering (customer value) and revenue generating mechanisms.
Payment on Delivery (POD): A service offered that permits cash or card payments upon delivery of merchandise.
Gross Merchandise Value (GMV): Represents the total sales value for merchandise sold by an online retailer over a specific time period.
Digital Financial Services (DFS): Leverage information and communication technologies for cost-efficient delivery channels. DFS includes electronic payments systems (retail and wholesale) and electronic banking products or services.