The National Assembly is set to pass the National Digital Economy and E-Governance Bill by the second quarter of 2025, reinforcing the Federal Government’s commitment to advancing the nation’s digital infrastructure and stimulating economic growth. The Bill intends to establish a comprehensive legal framework for Nigeria’s digital economy, focusing on critical areas such as technological innovation, e-governance, and digital services. Its primary goal is to cultivate a thriving digital economy by creating a conducive environment for digital businesses to promote innovation and attract investment in the sector.

The Bill applies to all public service institutions, private establishments, individuals, and organisations conducting digital activities in Nigeria, either wholly or in part.

HIGHLIGHTS OF THE BILL

• Validity of Electronic Transactions

The Bill aims to grant legal recognition to electronic transactions and states that electronic records and signatures hold the same legal validity as traditional paper documents. The Bill also establishes that electronic records or signatures can be used as evidence in legal proceedings, as long as they meet specific criteria for authenticity and integrity. It further clarifies that any information required by law to be in writing, recorded, or printed form is considered valid if stored electronically, provided it is accessible, usable, and retrievable. A single electronic copy is sufficient to meet any legal requirement for multiple copies, and there is no obligation to keep a paper version if the electronic record remains retrievable for the mandated retention period.

• Electronic Contracts and Time Stamps

The Bill seeks to establish the legal recognition and enforceability of electronic contracts. It provides that an offer and acceptance in contract formation may be made through electronic communications, and such a contract will not be denied validity or enforceability solely because it was concluded electronically. Furthermore, the Bill also provides that an electronic time stamp shall not be denied legal effect and admissibility as evidence in legal proceedings on the grounds that it is in an electronic form or that it does not meet the requirements set out in Section 27 of the Bill.

• Digital Government and Infrastructure

The Bill mandates, promotes, and enables the digital transformation of public institutions and government processes to enhance efficiency and effectiveness in service delivery. It covers key areas such as online service provision, digital record management, and system integration. The Bill provides that public institutions shall prioritise digital communication, storage, and information processing by adopting innovative and digitalised processes.

• Consumer Protection

The Bill sets out protections for consumers in digital transactions while defining the responsibilities of service providers and vendors conducting business through electronic communications. Service providers or vendors must ensure the confidentiality of consumer information unless consent is given, or disclosure is required by law. They must provide an accessible privacy policy outlining the types, sources, purpose, and disclosure of collected data, as well as consumer choices regarding its use. Sellers using electronic communications must offer clear and accurate details about themselves, their contact information, and the goods or services provided. They must also disclose transaction terms, conditions, and costs in a concise and accessible manner to enable informed consumer decisions.

• Penalties

The Bill provides that any person or corporate body that fails to comply with its provisions commits an offence. If the offence is committed by a body corporate or firm, the Chief Executive Officer or any officer acting in that capacity, as well as anyone purporting to act in such a role, will also be held responsible unless they can prove the offence occurred without their knowledge, consent, or connivance. In cases of non-compliance with the guidelines, regulations, or administrative sanctions, the individual or body corporate will be liable to fines. The fines imposed will increase for subsequent offences following a first offence. The Bill stipulates that the National Information Technology Development Agency will work with relevant ministries and agencies to enforce its provisions. It is important to note that proceedings or penalties under the Bill do not exempt a body corporate from its obligation to pay any applicable taxes or levies.

Conclusion

The Bill represents a significant step forward in promoting digital innovation in Nigeria, reflecting a comprehensive and forward-thinking approach to the country’s technological advancement. It addresses key areas necessary for fostering a robust digital economy, including the promotion of electronic governance, the protection of digital rights, and the establishment of frameworks that support the growth of digital businesses and services. The careful consideration of various stakeholders’ needs, along with the provision of clear regulatory guidelines, ensures that the Bill lays a strong foundation for Nigeria’s digital transformation.