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How eCommerce is Making Prices of Good & Services More Affordable

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By Adeniyi Ogunfowoke

 

Change is the only constant thing in life. The modus operandi of doing business in Nigeria has significantly been disrupted since the entry of eCommerce. One of the areas that the impact of ecommerce is currently being felt is in the prices of goods and services.

 

Gone are the days when shoppers have to visit physical stores or markets to haggle about prices. Sometimes, the prices at these stores are so outrageous that you end up either buying the product at an exorbitant face price, or buying a low-quality product because it is cheaper or you simply return home empty-handed. If any of the aforementioned happens to you, you are in a no-win situation.

 

Presently, a millennial or tech-savvy person who wants to buy anything is most likely to visit an ecommerce store. Apart from the fact that you will get a quick and real-time idea of what you intend to buy, you have the opportunity of comparing the prices of different brands in the same product category.

 

Offline vs Online Prices

The prices of goods and services online are not hidden. It is visible for everyone to see and of course, ecommerce companies like Jumia have made efforts to get shoppers and deal-scavengers the best price. Interestingly, to give you assurances that you are being offered the best price, Jumia recently ran a campaign tagged ‘Last Price Campaign’. The objective was to offer customers the very best prices on over 1,000 iconic products across all categories on its platform.

 

This is the level of guarantee that ecommerce companies are giving their customers who always desire the best price. In fact, competition in the ecommerce space is also driving down the prices.

 

There are many online stores who want a chunk of the market. One way to attract with the customers is by offering them the best price. So, beyond the convenience of being able to book a hotel or buy an item at any time of the day, an ecommerce store like Jumia will offer the best price on good and services. And since Jumia is now an ecosystem, shoppers have the opportunity of receiving the best deals on travel, food, and services.

 

To lend credence to this, if you book directly with the hotel, you will be getting the exact rates of the rooms. Conversely, if you book with an online travel agency like Jumia’s hotel and flight services, you will get a discounted price because they already negotiated the best price on your behalf. In addition to this, customers can take advantage of coupons and vouchers.

 

Currently, it appears as if the price war is not between offline and online stores but among online stores.

 

For the offline stores, shoppers have the advantage of haggling prices. The truth is that not many people want to go through this. But, if you decide to visit a departmental store, you simply accept whatever price you are offered. No negotiation…that is the last price.

 

Here, you cannot blame the brick and mortar store. Factors such as rent, electricity, payroll, fixtures and shrinkage loss all contribute to the gross margin and overhead of doing business in a shopping centre or elsewhere. This is why many offline stores are moving online. That’s not saying that these things don’t affect online retailers. They do, but online stores have a relatively better return on investment when compared with offline stores.

 

This is perhaps another reason to shop online as you have the virtual chances to visit different websites to get the best price.

 

The biggest shopping festival of the year: Black Friday

Black Friday, which is usually held in November is the biggest shopping festival in the world. A time to enjoy ‘crazie’ discounts on products and services. Nigerians have caught the Black Friday fever that they now save to cash in on the sales.

 

The fact remains that shoppers will get the best Black Friday deals and prices online and in the same vein, the goods will be delivered at their doorsteps. This is not the case with offline stores and if you factor in their high prices, it is advisable to stick with online shopping.

 

More importantly, the ‘shopping madness’ associated with Black Friday will be ultimately bypassed.

 

Can every day be Black Friday?

Thousands of customers will really love every day to be Black Friday. Clearly, this is not possible because fantastic deals and discount are usually one-off and they are only offered on Black Friday. Regardless, customers will still get the best deals. As earlier mentioned, competition is impacting price and it has helped online stores to offer the best available price.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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E-Business

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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E-Business

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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