Establishing regulations that align with international best practices can help African e-commerce platforms improve their competitiveness on the global stage. This can facilitate cross-border e-commerce and open up new markets for businesses on the continent.
The Nigerian government plans to regulate e-commerce platforms and introduce cyber insurance for users. This initiative is part of the draft National Digital Economy and E-Governance Bill under review by the National Assembly.
Sponsored by the Ministry of Communications, Innovation, and Digital Economy, the Bill is in the public engagement phase. It requires e-commerce platforms to provide clear and accurate information about sellers, goods, services, and transaction terms.
During a media engagement in Abuja on July 9, Minister of Communications, Innovation, and Digital Economy Dr. Bosun Tijani said the Bill would create a legal framework to accelerate Nigeria's digital economy. "This Bill will support the growth and transformation of Nigeria’s economy through technology," he said.
Section 40 of the Bill mandates the National Insurance Commission (NAICOM) and the National Information Technology Development Agency (NITDA) to develop cyber insurance regulations for electronic commerce.
Section 39 specifies that e-commerce sellers must provide legal names, addresses, and contact details, ensuring effective consumer communication and legal process service. It also mandates detailed descriptions of goods or services and clear terms and conditions, including payment methods, returns, and refund policies.
If passed, major e-commerce platforms, as well as smaller players, would face stricter regulations and potential new taxes and levies imposed by NITDA. Non-compliance could result in fines.
The proposed legislation is poised to impact the country's rapidly growing e-commerce sector significantly. According to the European Company Database (ECDB) report titled eCommerce Market in Nigeria, this sector is expected to generate $2.68 billion in revenue by 2024 and grow at a compound annual growth rate of 12.8%, reaching $4.34 billion by 2028.
Hikmatu Bilali
