The Nigerian government is considering creating laws to set up cyber insurance for consumers and regulate the activities of eCommerce platforms, as outlined in the draft National Digital Economy and E-Governance Bill.
“The National Insurance Commission (NAICOM), in consultation with the regulatory agency [National Information Technology Development Agency (NITDA)] shall develop and issue regulations, including provisions on cyber insurance to improve security in electronic commerce,” states a bill that is presently before the National Assembly.
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Nigeria’s eCommerce Regulatory Framework
The bill’s sponsor is the Ministry of Communications, Innovation, and Digital Economy. It is presently undergoing a public participation phase, and on July 23, 2024, the final text is supposedly scheduled to be made available to the public.
According to the Bill, a person selling things through electronic communications must provide certain information, including their legal name, primary geographic address, and a phone number or electronic contact method.
Additionally, eCommerce platforms are mandated to provide information describing the goods or services offered and transparent terms and conditions.
The country’s digital economy will advance faster, according to Minister of Communications, Innovation, and Digital Economy Bosun Tijani, who notes that there is now no precise regulation in this area. He said the legislation would be implemented in each of the nation’s six geographic zones if passed.
Boosting e-commerce in Nigeria’s Market
According to NITDA Director-General Malam Kashifu Inuwa, the bill will improve the usage of the digital economy throughout the nation in both the public and private sectors.
eCommerce platforms like Jumia and Konga are active in Nigeria, with Jumia seeing a rise in orders. In May 2024, Jumia reported a $48.9 million revenue increase and a gross profit of $31.2 million in Q1, stating that its order volume and average order value (AOV) grew, including in its market in Nigeria.
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To optimise its operations and reduce costs, Jumia, the leading e-commerce platform, has announced plans to consolidate its three Nigerian warehouses into a single, sprawling 30,000-square-metre base in Lagos.
This strategic move aims to streamline logistics, enhance efficiency, and save money. By centralising its warehousing operations, Jumia can better manage its inventory, reduce overhead costs, and improve its overall supply chain management.
Despite consolidating its warehouses, Jumia remains committed to expanding its presence in Nigeria. The company has expressed its desire to grow into other Nigerian locations, tapping into its vast market potential.
This expansion drive demonstrates Jumia’s confidence in the Nigerian market and its determination to strengthen its position as a leading e-commerce player in the region. By balancing cost optimisation and strategic growth, Jumia is poised to continue its upward trajectory and cement its status as a dominant force in African e-commerce.