The federal government of Nigeria is set to introduce regulations to guide the operations of e-commerce platforms and the provision of cyber insurance for users.
This initiative is detailed in the draft National Digital Economy and E-Governance Bill, currently under review by the National Assembly.
Cyber Insurance Regulations
Section 40 of the Bill mandates the National Insurance Commission (NAICOM), in collaboration with the National Information Technology Development Agency (NITDA), to develop and implement regulations on cyber insurance.
The primary goal is to bolster security measures in electronic commerce, ensuring that both e-commerce platforms and consumers are protected from cyber threats.
E-commerce Operation
The National Digital Economy Bill outlines specific guidelines for the operation of e-commerce platforms in Nigeria, focusing on transparency and consumer protection.
National Digital Economy and e-Governance Bill Central to ICT Sector’s N18.3b Revenue by 2026
Information Requirements
Section 39 underlines the necessity for e-commerce platforms to provide clear and accessible information about their business and products. Key requirements include:
- Seller Information:
- Legal name of the seller.
- Principal geographic address.
- Electronic means of contact or telephone number.
- Information sufficient to allow prompt, easy, and effective consumer communication with the seller, as well as the service of legal process.
- Goods and Services Description:
- Accurate and accessible information describing the goods or services offered.
- Terms and Conditions:
- Clear terms, conditions, and costs associated with transactions.
- Information on payment methods.
- Details on withdrawal, termination, return, exchange, cancellation, and refund policies.
“A person using electronic communications to sell goods or services to consumers shall provide accurate, clear, and accessible information about themselves including the legal name of the person, its principal geographic address, and an electronic means of contact or telephone number, sufficient to allow– (a) prompt, easy and effective consumer communication with the seller; and (b) service of legal process.
“A person using electronic communications to sell goods or services to consumers shall provide information about the terms, conditions and costs associated with a transaction in a manner that is accessible, concise, and comprehensive to the consumer, including– (a) terms, conditions and methods of payment; and details of and conditions related to withdrawal, termination, return, exchange, cancellation and refund policy information; and (b) details of and conditions related to withdrawal, termination, return, exchange, cancellation and refund policy information, the section read.
These guidelines are designed to ensure consumers have all necessary information to make informed decisions and to enable trust in online transactions.
The National Digital Economy Bill also stresses the importance of accurate product descriptions. E-commerce platforms must provide comprehensive and truthful details about their goods and services.
This includes specifying product features, usage instructions, and any limitations. Clear terms regarding payment, shipping, and returns must also be communicated effectively to consumers.
Legislative Support for Digital Economy Growth
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has outlined the Bill’s capability to advance Nigeria’s digital economy. He highlighted the lack of clear legislation in this space and the Bill’s role in filling that gap.
Dr. Tijani noted that the Bill would support economic growth, innovation, and competitiveness.
Implementation and Impact
According to Dr. Tijani, the Bill, once enacted, will be implemented across all six geopolitical zones of Nigeria. Malam Kashifu Inuwa, Director-General of NITDA, added that the legislation would enhance digital economy utilization in both government and private sectors.
Key Highlights of the Bill
- Regulatory Framework: Establishes legal guidelines for the digital economy, promoting digital literacy, enhancing cybersecurity, and encouraging innovation.
- Economic Growth: Aims to add about $18.3 billion to the Nigerian economy and attract foreign direct investment by creating a favourable environment for tech startups and international tech companies.
- Consumer Protection: Strengthens consumer rights in the digital space, ensuring data privacy and security measures are in place to protect personal information.
- Infrastructure Development: Focuses on improving digital infrastructure across the country, including expanding broadband access to rural and underserved areas.
- Job Creation: Projects to create millions of jobs in the digital sector by facilitating a supportive ecosystem for tech talent and entrepreneurship.
- Tax Incentives: Provides tax relief and incentives for businesses investing in digital technologies and innovation, aimed at boosting overall economic activity and competitiveness.
- Collaboration: Encourages collaboration between the public and private sectors to drive technological advancements and implement best practices in digital governance.
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