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:

1. 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.
2. Goods and Services Description:
   • Accurate and accessible information describing the goods or services offered.
3. 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

1. Regulatory Framework: Establishes legal guidelines for the digital economy, promoting digital literacy, enhancing cybersecurity, and encouraging innovation.
2. 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. 
3. Consumer Protection: Strengthens consumer rights in the digital space, ensuring data privacy and security measures are in place to protect personal information.
4. Infrastructure Development: Focuses on improving digital infrastructure across the country, including expanding broadband access to rural and underserved areas.
5. Job Creation: Projects to create millions of jobs in the digital sector by facilitating a supportive ecosystem for tech talent and entrepreneurship.
6. Tax Incentives: Provides tax relief and incentives for businesses investing in digital technologies and innovation, aimed at boosting overall economic activity and competitiveness.
7. Collaboration: Encourages collaboration between the public and private sectors to drive technological advancements and implement best practices in digital governance.

Highlighting the sector’s prospects to generate up to N18.3 billion by 2026, Tijani noted its essential role as a backbone for the nation’s economic prosperity. 

This announcement came during an event organized by the Senate Committee on Information and Communication Technology (ICT) and Cybersecurity, alongside the House of Representatives Committee on Digital and Information Communication Technology, aimed at raising awareness about the National Digital Economy and e-Governance Bill.

Dr. Tijani pointed out that the ICT sector is already a big contributor to Nigeria’s GDP, accounting for approximately 13 to 18%.

In the last quarter of 2023 alone, the sector contributed about 16.6%. 

The sector’s revenue has seen commendable growth, from N5.49 billion in 2019 to the projected N18.3 billion by 2026.

The minister attributed this to Nigeria’s status as a leading destination for foreign direct investment (FDI) in technology, with tech startups attracting around $2 billion in FDI last year.

Beyond financial figures, Tijani pointed to the ability of the digital economy in creating jobs and enhancing productivity across various sectors. He noted that the digital economy’s growth could spur development in other areas, acting as a stimulus for broader economic progress.

Central to this vision is the National Digital Economy and e-Governance Bill, which Dr. Tijani described as long overdue. The bill aims to provide a comprehensive legal framework to facilitate innovation, fair competition, and sustained growth in the digital economy.

It also seeks to “enhance the use of digital technology to support growth and transformation of Nigeria’s Economy through application and use of digital technology in all facets of life in Nigeria.”

“There is no clear legislation pushing competition and ensuring development in the digital space,” Tijani said, highlighting the bill’s ability to fill this gap.

The bill’s significance was reiterated by Senator Shuaib Salisu, Chairman of the Senate Committee on ICT and Cybersecurity. Salisu stressed that ICT is not just another sector but a foundational element upon which other sectors depend. 

He also indicated the importance of media engagement in ensuring the bill’s success, clarifying that it is not about levies or commissions but about creating an enabling environment for the digital economy to thrive.

Hon. Stanley Olajide, Chairman of the House Committee on Digital and Information Communication Technology, agreed to this perspective, describing the bill as important for sustainable development. 

Olajide highlighted the inclusive approach in the bill’s development, emphasizing collaboration with stakeholders to ensure the legislation meets the needs and aspirations of Nigerians.

He pointed out that the bill, which has already undergone its first reading in the National Assembly, aims to establish a regulatory framework for digital literacy, skills development, enhanced cybersecurity, and innovation.

Further adding to the discourse, the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, through his representative Emmanuel Edet, described the bill as an enabler for integrating digital technologies into daily life and governance.

Inuwa emphasized the need to leverage the growing digital industry to drive economic desires, leveraging Nigeria’s youthful population and growing digital skills.

The bill, structured in 16 parts with over 60 sections, addresses a wide range of topics, including the validity of electronic transactions, digital contracts, signatures, and time stamps. It also focuses on consumer protection for digital transactions and the use of emerging technologies such as artificial intelligence and blockchain for public services.

As part of the legislative process, the Ministry of Communications, Innovation, and Digital Economy announced plans to release the updated bill by July 23, 2024. 

The ministry will engage stakeholders nationwide, including public services, regulators, innovators, and service providers, to gather feedback and ensure the bill’s relevance and applicability. Technical workshops will also be held to refine the draft and incorporate expert opinions.