In today’s digital world, businesses and individuals are increasingly moving away from traditional paper-based processes in favor of more efficient and secure digital alternatives. One of the key innovations enabling this shift is electronic signatures (e-signatures) a legally recognized way to sign documents without the need for physical paperwork. While e-signatures have gained widespread adoption globally, many Nigerian businesses still question their legal standing and enforceability.
Understanding the Legality of E-Signatures in Nigeria
Nigeria has taken significant steps to embrace digital transformation, including the legal recognition of electronic signatures. The Evidence Act 2011 and the Cybercrimes (Prohibition, Prevention, etc.) Act 2015 provides the legal framework for e-signatures, outlining their validity, admissibility in court, and the conditions under which they are legally binding. However, while e-signatures are generally accepted across various industries, specific exceptions and regulatory nuances apply, making it essential for businesses to understand the legal landscape before full-scale adoption.
The key regulations that have recognized e-signature in Nigeria include;
- ● The Evidence Act 2011
- ● Cybercrimes (Prohibition, Prevention, etc) Act of 2015
- ● The Companies and Allied Matters Act 2020.
The regulations do not provide a definition for electronic signature, however, the Court of Appeal recently defined a signature in INEMIEBI V. STATE (2022) LPELR-57020 (CA) as “simply someone’s name or writing expressed uniquely consistently to identify the person and signify his consent to a document.” In other instances, the Nigerian Courts have defined it under the Black’s Law Dictionary to mean a person’s name or mark written by that person or at the person’s direction. It is therefore relatively clear, that an electronic signature may be defined as the electronic version of a person’s name, mark, unique identification, etc. written by the person or at its direction to consent to the content and or data. It can also be generally described as a form of electronic communication through which a signatory communicates an intention to authenticate a document.
The Evidence Act 2011 recognizes the use of electronic signatures. Leading digital transaction management solutions can provide electronic records that are admissible in evidence under Section 93 of the Nigerian Evidence Act, to support the existence, authenticity, and valid acceptance of a contract. Section 17 of the Cybercrimes Act, states that electronic signatures shall be binding concerning all transactions unless they are specifically excluded by law. If the authenticity of an electronic signature is challenged, the burden of proof rests on the individual disputing its authenticity in court.
Notable Changes
The Electronic Transaction Bill 2017 (the Bill) was passed by the Nigerian Senate in 2017, but it has yet to receive the assent of the President.
Instances where electronic signatures are not accepted
- • Creating and executing wills, codicils, and other testamentary documents.
- • Issuing death and birth certificates.
- Matters of family law, such as marriage, divorce, adoption, and related subjects.
- • Issuing court orders, notices, and court documents, including affidavits, pleadings, motions, and other related judicial instruments.
- • Cancelling or terminating utility services.
- • Preparing documents necessary for the transport or management of hazardous materials, either solid or liquid.
- • Issuing documents ordering the withdrawal of drugs, chemicals, and other materials due to reasons such as being fake, posing a danger to people or the environment, or being expired by any authorized entity.
- • Seal – alienation of land
- • Seal – power of attorney allowing the attorney to execute deeds
Instances where electronic signatures are accepted
- ● Consumer agreements, including new retail account opening documents, sales terms, service terms, software licenses, purchase orders, order confirmations, invoices, user manuals, policies, and service agreements.
- ● HR documents, such as contracts of employment, non-disclosure agreements (NDAs), employee invention agreements, privacy notices, benefits paperwork, internal policies, and other new employee onboarding processes.
- ● Commercial agreements between corporate entities; NDAs, purchase orders, invoices, service level agreements, sales agreements, etc.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, consult a legal practitioner in your area.
Reference:
https://omaplex.com.ng/the-validity-and-limitation-of-electronic-signatures-under-the-nigerian-law/
https://trustedadvisorslaw.com/understanding-electronic-contracts-and-signatures-in-nigeria-legal-insights/
