Nigeria seeks to force digital transformation with new bill

If the proposed National Digital Economy and E-Governance bill is passed into law, public institutions across Nigeria will be mandated to adopt electronic communication for official correspondence, contracts, and legal proceedings. The National Information Technology Development Agency (NITDA) will be responsible for implementing the bill when passed.

Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, released a draft of the bill two weeks after it passed a first reading at the National Assembly. If the bill is passed, public institutions will conduct activities and functions electronically, including accepting document filings, information processing, document creation and retention, permit or license issuing, and payment processing.

“The bill is change-driven. The provisions are very strong, and it’s a culture-shifting bill aimed at driving us towards digitalization,” said Oswald Osaretin Guobadia, Managing partner at DigitA.

The Digital Economy and E-Governance Bill mandates electronic records and contracts within government organizations. It also stipulates a fine of not less than ₦1 million per individual and not less than ₦10 million for corporations who fail to comply with the frameworks, guidelines, and regulations under the act.

“The bill is a bit overloaded and should have been divided into two separate documents—one for the Digital Economy bill and the other for the E-governance bill,” said one analyst who asked not to be named. The analyst also claimed that some parts of the bill have been covered under different aspects of Nigerian law.

The bill also seeks to create a new ICT division that contravenes existing laws established by the Nigerian Communications Commission (NCC) and the National Information Technology Development Agency (NITDA)

“The entire bill should have been a directive from the President to different institutions on how they can come together and achieve e-governance,” Guobadia notes. ⁠”Ultimately, the success of this lies in the collaborative nature of the Bill development process.”

When enacted, the Digital Economy Bill will bring Nigeria one step closer to e-governance. The country lags behind other African countries—Ghana, Mauritius, South Africa, and Tunisia—that have been identified with high e-government development indexes. The move will also contribute to Nigeria’s goal of increasing digital literacy rates.

“The Bill has the potential to significantly improve public administration and service delivery in Nigeria,” notes Davidson Oturu, Managing partner at Nubia Capital.

The bill doesn’t state clear rules and procedures for its implementation and may be difficult to implement in areas with limited technological infrastructure.

“The implementation may be difficult because the regulating agency (NITDA) already has a lot on its plate and may not be able to deliver on it,” Guobadia said.

While the bill will enable e-government and boost digital literacy among government workers, section 62 of the draft seeks to override the provisions of any other law in all matters relating to digital economy and e-government. This can lead to power struggles between existing government agencies who already cater to some part of what the bill covers, the analyst said.