- Contained in the draft National Digital Economy and E-Governance Bill, the Nigerian government is considering developing regulations to guide the operations of eCommerce platforms and set up cyber insurance for users.
- The Bill, currently before the National Assembly, includes that “the National Insurance Commission (NAICOM) in consultation with the regulatory agency [National Information Technology Development Agency (NITDA)] shall develop and issue regulations, including provisions on cyber insurance to improve security in electronic commerce.”
- Sponsored by the Ministry of Communications, Innovation, and Digital Economy, the Bill is currently going through a public engagement phase, and the final draft is reportedly expected to be released to the public on 23 July 2024.
Per the Bill, information such as legal name, principal geographic address, and an electronic means of contact or telephone number shall be provided by a person selling goods using electronic communications.
Additionally, eCommerce platforms are mandated to provide information describing the goods or services offered and clear terms and conditions.
In addition to terms and conditions, methods of payment, details and conditions related to withdrawal, termination, return, exchange, cancellation, and refund policy information shall be provided.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, believes this initiative will accelerate progress in the nation's digital economy, noting the space’s absence of clear legislation. He mentioned that if enacted, the law would be applied across all six geopolitical zones of the country.
The Director-General of NITDA, Malam Kashifu Inuwa, said the bill will enhance the use of the digital economy in the entire country, both in government and the private sector.
eCommerce platforms like Jumia and Konga are active in Nigeria, with Jumia seeing a rise in orders. In May 2024, Jumia reported a $48.9 million revenue increase and a gross profit of $31.2 million in Q1, stating that its order volume and average order value (AOV) grew, including in its market in Nigeria.
Additionally, Jumia is combining its three Nigerian warehouses into a single 30,000-square-metre depot in Lagos to save costs. The eCommerce giant is also looking to expand into more cities in Nigeria.
