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Nigerian Government to Introduce E-Commerce Regulations and Cyber Insurance

The Federal Government of Nigeria is set to implement comprehensive regulations for e-commerce platforms and introduce cyber insurance, marking a significant step towards enhancing security in the digital economy.

Key Points:

  • New regulations proposed in the National Digital Economy and E-Governance Bill
  • National Insurance Commission (NAICOM) to develop cyber insurance provisions
  • E-commerce platforms are required to provide transparent information and policies.
  • A potential $18.3 billion economic boost is expected from the bill’s implementation.

In a move to strengthen Nigeria’s digital landscape, the Federal Government has proposed new regulations for e-commerce platforms and cyber insurance through the National Digital Economy and E-Governance Bill, currently under review by the National Assembly.

The bill mandates NAICOM, in collaboration with relevant regulatory agencies, to develop and issue regulations that include provisions for cyber insurance. This initiative aims to create a more secure environment for online transactions and boost consumer confidence in e-commerce.

Section 39 of the bill outlines specific guidelines for e-commerce platforms, requiring them to provide:

  1. Accurate and accessible information about their legal identity and contact details
  2. Clear descriptions of the goods and services offered
  3. Transparent terms and conditions
  4. Detailed information on payment methods and refund policies

The legislation emphasises the importance of clear communication between e-commerce platforms and consumers. It states, “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.”

The bill, which has passed its first reading in the House of Representatives, is currently in its second reading. Bosun Tijjani, Minister of Communications, Innovation, and Digital Economy, has been actively engaging with stakeholders from various sectors to refine the bill’s provisions. The final draft is expected to be released to the public on July 23, 2024.

Notably, Minister Tijjani projects that the passing of this bill could inject a substantial $18.3 billion into the Nigerian economy, highlighting its potential to drive significant economic growth through digital transformation.

As Nigeria continues to embrace the digital age, these proposed regulations aim to create a more robust, secure, and trustworthy e-commerce ecosystem, benefiting both businesses and consumers in the long run.

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