Share this article

The federal government of Nigeria is set to introduce new regulations to guide the operations of e-commerce platforms and the provision of cyber insurance for users. These initiatives are outlined in the draft National Digital Economy and E-Governance Bill, which is 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 enhance security measures in electronic commerce, ensuring that both e-commerce platforms and consumers are protected from cyber threats.

E-commerce Operations

The National Digital Economy Bill outlines specific guidelines for the operation of e-commerce platforms in Nigeria, with a focus on transparency and consumer protection.

Information Requirements

Section 39 emphasizes 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

The Bill states: “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.”

Additionally, it requires: “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 (b) details of and conditions related to withdrawal, termination, return, exchange, cancellation, and refund policy information.”

These guidelines are designed to ensure consumers have all necessary information to make informed decisions and to build trust in online transactions. The Bill also stresses the importance of accurate product descriptions. E-commerce platforms must provide comprehensive and truthful details about their goods and services, including 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 emphasized the Bill’s potential to advance Nigeria’s digital economy. He highlighted the lack of clear legislation in this area 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 favorable 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.