A Policy Brief

The National Digital Economy and e-Governance Bill 2024 seeks to enhance Nigeria’s digital economy and e-governance frameworks by setting out robust regulations and standards for electronic transactions, digital signatures, electronic contracts, and electronic records retention. It also outlines provisions for consumer protection, digital government services, and the management of digital government infrastructure.

The bill, which is the product of the National Information and Technology Development Agency (NITDA) and has passed the first reading at the National Assembly, is intended to stimulate economic growth by enhancing digital connectivity, streamlining government services, and fostering innovation within the economy. As it relates to the financial sector, the bill, if passed into law, has the potential to accelerate growth and support the achievement of the nation’s financial inclusion targets through the reduction in bottlenecks and improvement in ease of the process of documentary onboarding, mandate management, and the penetration of Digital Financial Services.

What should you know about the Bill?

The bill deals primarily with the following key issues:

1. Legal Recognition of Electronic Transactions: providing for the legal recognition of electronic transactions and records, and their legal application in the same way as their paper-based counterparts.
2. Electronic Signatures and Contracts: seeking to validate the use of electronic and digital signatures by providing a framework for their legal standing in contracts and other legal documents.
3. Consumer Protection: providing for measures to protect consumers in electronic commerce, such as requiring vendor information and safeguarding personal data.
4. Digital Government: seeking to mandate the digitization of government processes and services, with the goal of improving efficiency, transparency, and service delivery. The bill also seeks to drive the inclusion of ICT infrastructure as part of project design, further promoting the expansion of internet connectivity in public places through the inclusion of fibre ducts as stipulated in the Nigerian National Broadband Plan 2020-2025.
5. Offences and Penalties: specifying offences related to digital transactions and stipulates penalties for non-compliance.

The bill is intended to apply to both public and private individuals and organisations “conducting digital activities in Nigeria, either wholly or in part”. It articulates the following 7 key objectives. Viz:

1. To enhance the use of digital technology to grow Nigeria’s economy.
2. To create an enabling environment for fair competition to promote innovation, growth, and competitiveness for the Nigerian Digital Economy.
3. To create export-oriented capacities in Nigeria’s digital economy to improve Nigeria’s balance of trade and services.
4. To mandate, promote and enable the digital transformation of public institutions and government processes for efficient and effective service delivery
5. To encourage and improve service delivery, openness and accountability for delivery of public or citizen digital services.
6. To provide a legal framework to support international digital trade and investments using digital means.
7. To create a framework for the enhancement of digital economy governance amongst the Ministries, Departments and agencies.

The main theme of the bill is the legitimacy of electronic documents, information, transactions, and contracts, and in fact, emphasizes a preference for electronic documents over hard copy documents. This would apply to requirements to provide information in writing, deliver, provide access to, store and retain, and to present in original form. Particularly, Section 7 subsection 1 states that “An expression in a law, whether used as a noun or verb, including the terms “document,”  “record”, “file”, “submit,”  “lodge,”  “deliver,”  “issue,”  “publish,”  “write in,”  “print,”  “register” or words or expressions of similar effect, shall be interpreted to include or permit such form, format or action in relation to an electronic record unless otherwise provided for in this Act”. The need for reference to paper copies of documents or the provision of information in hard copy as proof or demonstration of the integrity of information is intended by the bill to be de-emphasised.

By extension, this intendment will apply to the formation of contracts by electronic communication, validating and ensuring their enforceability. It also makes provision for cancellation or redress where communication of intent to contract is made erroneously.  The question of endorsement and signing of electronic communications or documents is also addressed. The bill’s drafting demonstrates an intention to have digital signatures as valid proof of endorsement of an electronic document or digital record by the holder of the signature until otherwise proven.

The provisions on electronic transferable records are extensive (Sections 24-34). Specific provisions are made on the general reliability standards of electronic transferable records, the legal requirement for transferable documents or instruments, control of an electronic transferable record, endorsement, amendment, replacement of an electronic transferable record with a transferable instrument and vice versa, and the non-discrimination of foreign electronic transferable records.

Chapter 3, sections 44 to 60, speak to digital transformation in public institutions, focusing on the mainstreaming of digital public sector practice and service provision. Section 55 articulates the intendment of this part. It states that “public institutions shall accord preference for digital forms of communication, storing, and processing information by innovating and digitalising processes.”. This includes keeping of records, furnishing of information, data collection and management, gazetting information, intra-government communication, government-citizen communication, and public sector audit. It also defines a framework for setting up the required infrastructure and systems for the transition.

When fully, implemented, this section will bring about a huge shift in public administration, access, delivery, and accountability. It will also positively impact national Ease of Doing Business indicators and down-line value addition for financial inclusion.

Several of these aspects that are fundamental and could have a direct impact on financial inclusion are the Validity of Electronic Transactions (Chapter 2, Part 1), Electronic Contracts (Chapter 2, Part 2), Electronic Signatures (Chapter 2, Part 3), Consumer Protection (Chapter 2, Part 7), and Digital Government (Chapter 3, Part 8). These elements are crucial in enhancing the infrastructure and trust necessary for effective financial inclusion through digital channels. Other sections may also play a role by way of general application.

Conclusion

The National Digital Economy and E-Governance Bill 2024 is poised to be a transformative piece of legislation that will not only advance Nigeria’s digital economy but also streamline governance and service delivery across the nation. As this bill progresses through the legislative process, we encourage you to engage with it by sharing your thoughts, questions, and concerns. Your feedback is vital in shaping a digital future that benefits all Nigerians.

What aspects of the bill do you find most useful? Any gaps in the current draft? How do you believe it will affect your daily life or business? Your voice matters—let’s make it heard!

Connect with us.