Overview of the National Digital Economy and E-Governance Bill, 2024

The Nigerian National Digital Economy and E-Governance Bill, 2024 is a comprehensive legislative effort aimed at revolutionizing the country’s digital landscape. The Bill focuses on integrating digital processes within public institutions, promoting digital transactions, enhancing service delivery, and creating a conducive environment for digital trade and investments. At the time, Nigeria’s digital landscape was unintegrated, and digital governance remains largely piecemeal and incoherent.  The bill addresses this lacuna by emphasizing the digitization of government services and operations.  Some of the objectives of the bill range from encouraging and improving public service delivery, openness, and accountability to creating a framework for the enhancement of digital economy governance amongst the Ministries, Departments, and Agencies.

Objectives of the Bill

The Primary objectives of the National Digital Economy and E-Governance Bill, 2024 are to:

1. Foster the growth of the digital economy: This Bill seeks to create an enabling environment for digital businesses, promoting innovation, and attracting investments in the digital sector.
2. Enhance digital governance: The Bill also seeks to improve public service delivery, increasing efficiency, transparency, and accountability in government processes using digital technologies.
3. Create a legal framework for digital transactions: Establish clear rules and regulations for electronic and digital transactions, contracts, signatures, and timestamps.
4. Consumer Protection: The Bill seeks to protect the rights and interests of consumers engaged in digital transactions are protected.
5. Develop Nigeria’s digital export capabilities: Positioning Nigeria as a global player in the digital economy by promoting digital services and products for export.
6. Enhance cybersecurity: Protecting critical infrastructure and sensitive information from cyber threats.
7. Promote digital literacy: Increasing digital literacy among the population to facilitate wider participation in the digital economy.
8. Leverage emerging technologies: Utilizing technologies like artificial intelligence and blockchain for public service delivery and economic growth.

Scope and Application

The Bill has a broad scope as it applies to all public service institutions, private establishments, individuals, and organizations conducting digital activities in Nigeria. It also applies to electronic transactions, contracts, consumer protection, data privacy, etc. The bill’s broad scope reflects a clear intent to establish an environment that supports the growth of the digital economy, protects consumers, and enhances the delivery of government services.  It further reflects that the bill is far-reaching as it cuts across different sectors of the Nigerian economy.

Key Provisions of the Bill

Some of the standout provisions of the Bill include the following:

1. Electronic Filing and Record-Keeping: Public institutions are required to transition from paper-based processes to electronic formats. This means documents, records, permits, and licenses must be created, maintained, and issued digitally.
2. ICT Units in Public Institutions: The bill mandates that every public institution must establish Information and Communication Technology (ICT) units responsible for implementing digital initiatives. These units ensure adherence to digital governance guidelines set by regulatory agencies.
3. Electronic Signatures and Security: The Bill recognizes the legal validity of electronic signatures, allowing parties to sign contracts digitally. This promotes efficiency and reduces the need for physical signatures.
4. Electronic Contracts: The Bill acknowledges the validity and enforceability of contracts formed through electronic means. This ensures that agreements made digitally carry the same legal weight as traditional paper-based contracts.
5. Formation of Contracts: The bill outlines the conditions and requirements for the formation of a valid digital contract. This includes issues such as offer, acceptance, consideration, and intention to create legal relations.

Impact on Startups

Startups play a significant role in job creation and economic impact by driving employment growth and fostering innovation across industries. The National Digital Economy and E-Governance Bill, 2024, has the potential to significantly impact the startup ecosystem in Nigeria.  Below are the impacts of the Bill on Start-Ups:

1. Streamlined Operations: Startups will benefit from reduced bureaucratic hurdles and faster processing times for government-related transactions.
2. Improved Compliance: Clear guidelines for digital transactions and records reduce ambiguities, making it easier for startups to comply with regulations.
3. Enhanced Innovation: A supportive regulatory environment fosters innovation, enabling startups to leverage digital tools for expansion and efficiency.

Sectors Affected:

The Bill applies broadly to various categories of businesses, particularly those involved in digital transactions and services. This includes:

1. Digital Service: Businesses providing digital services or products through electronic communications are directly affected. They must comply with the Bill’s provisions on consumer protection, transparency, and digital transactions.
2. E-Commerce: Online vendors and e-commerce platforms must adhere to regulations concerning the provision of clear and accessible information, protection of consumer data, and anti-competitive practices.
3. Cross-Border Digital Trade: Businesses engaged in international digital trade will benefit from the Bill’s support for cross-border e-commerce and digital transactions, potentially enhancing Nigeria’s position in the global digital economy.

Tax Implications

Introduction of New Taxes or Removal of Existing Ones: The Bill does not introduce new taxes or remove existing ones directly. Its focus is primarily on the digitization of processes rather than altering tax structures. However, the increased digital economic activities facilitated by the Bill could have indirect tax implications, such as:

• Increased Tax Revenue: As digital trade and e-commerce activities expand, the government’s tax revenue from these sectors may increase.
• Simplified Tax Compliance: Digital record-keeping and electronic transactions can simplify tax compliance for businesses, making it easier to maintain accurate financial records and report taxes accurately.

Administration Implications

The Bill aims to make doing business faster and easier by reducing administrative burdens through several key measures:

1. Electronic Government Services: By enabling electronic filing, issuance of permits and licenses, and digital record-keeping, the Bill reduces the need for physical paperwork and in-person visits to government offices.
2. Faster Processing Times: Digital processes are typically faster and more efficient than manual ones. The Bill mandates electronic formats for various government functions, potentially reducing processing times for business-related filings and approvals.
3. Transparency and Accessibility: Public information required by law to be available for inspection must be accessible electronically, enhancing transparency and ease of access.

Impact on Founders, Lawyers, Investors, and Business Customers

1. Founders and Startups: The Bill is generally positive for founders and startups as it simplifies administrative processes, reduces bureaucratic delays, and provides a supportive regulatory environment for digital innovation and growth.
2. Lawyers and Legal Advisors: Legal professionals will play a crucial role in helping businesses navigate the new digital regulatory framework, ensuring compliance with the Bill’s provisions and leveraging its benefits for their clients.
3. Investors: By creating a more predictable and transparent digital business environment, the Bill can attract both local and international investors, boosting confidence in Nigeria’s digital economy.
4. Business Customers: Consumers benefit from enhanced protection measures, transparency in digital transactions, and improved access to government services. This builds trust in digital platforms and encourages more engagement in the digital economy.

Conclusion

The National Digital Economy and E-Governance Bill, 2024 marks a significant step towards digital transformation in Nigeria. By mandating the digitization of government services, enhancing digital trade, and improving administrative efficiency, the Bill positions Nigeria as a leader in the African digital market. While it does not introduce new taxes, the potential increase in digital economic activities could have broader economic implications. Overall, the Bill is expected to positively impact startups, legal professionals, investors, and consumers, fostering a more vibrant and efficient digital economy.