By Lere Ojedokun
Increased adoption of technology among informal retailers, micro businesses and individuals coupled with the COVID-19 disruption, has made e-commerce a veritable transaction model in Nigeria.
With e-commerce systems now an important part of our daily life, B2B e-commerce platforms like Alerzo are also increasingly proving their significance as enablers of national socio-economic growth.
Statistics show the current market value of e-commerce in Nigeria is estimated at US$13bn, with a further projection to reach US$75bn by 2025, while the segment generates over 3 million jobs.
Hence, the recent disclosure by the Federal Government to formulate the National Policy on e-Commerce with a view to strengthening the regulation and protection of users of online transactions is a welcome development because of likely benefits to tech-based B2B e-commerce startups like Alerzo.
The National Information Technology Development Agency (NITDA) had revealed recently that the government was working with relevant stakeholders to formulate the National Policy on e-Commerce which seeks to regulate and protect both the buyers and the sellers while transacting business online.
Oladejo Olawunmi, Director, Standards, Guidelines and Framework at NITDA, speaking at a Consumer Protection Forum with the theme, ‘Enabling the e-Commerce Services Driven Economy: Opportunities for Consumers, Challenges and Way Forward in Nigeria’ in Abuja, explained that the proposed policy was aimed at ensuring protection and safeguard of all players in the e-commerce space.
The impending policy is heart-warming because it further demonstrates the Federal Government’s acknowledgement of the contribution of the e-commerce system as a significant component of the Information and Communication Technology sector – the pivot of the national digital economy agenda.
The move also gives credence to the government’s resolve to strengthen the entire ICT sector to deliver more impact on the country’s social and economic landscape.
Much more, the policy is capable of benefiting hundreds of tech-based e-commerce startups in the country in that it could bolster the capacity of e-commerce operators such as Alerzo and others to increase their support for key sectors of the economy especially manufacturing, distribution and retail, and logistics value chains, as well as merchants.
Currently, Alerzo is a leading b2b e-commerce platform that is enabling thousands of informal retailers in the country to place order on Alerzoshop app and have goods delivered faster within a maximum of four hours, at no extra cost. The new policy when formulated would protect them and their customers who make and receive payments on AlerzoPay POS terminals.
Alerzo would also leverage the new policy to strengthen protection of retailers and customers that use its other digital services like Veedez, the company’s book-keeping and inventory management app. The sanctity of sensitive documents such as invoices shared online will be further enhanced.
Several other players that deploy technology or digital solutions like banks and fintech can leverage the policy to further improve user experience of services such as mobile/online and digital banking.
The policy can improve online transactions for large, small and medium companies and their customers, while merchants, wholesalers, retailers and partners such as supermarkets, spas, gas stations, restaurants, ride hailing firms can also strengthen user experience.
While the policy can foster the development of the e-commerce system on one hand, it will certainly impact national economic growth in the long run. By boosting the confidence of users of online platforms, encouraging online transactions as well as fostering financial inclusion and cashless economy, the government’s digital economy will be significantly enhanced.
The national e-commerce policy can impact government agencies dealing with online data collection by ensuring adequate security of the national data bank.
Times like these that incidences of data and identity theft and cyber security breach are becoming more concerning, the new policy will benefit Nigeria more. It will affirm the country as a data-secure destination and further demonstrates the commitment of the Federal Government to antitrust policy.
In a nutshell, when formulated and operational, the National Policy on e-Commerce will significantly impact a wide range of value chains including manufacturers/producers of goods; micro, small and medium enterprises (MSMEs), service providers, customers and the country at large.
Ojedokun is a communications and brand strategist.