Why use e-signatures?
Sending electronic documents online has become a common practice, and these documents often require signatures. Electronic signatures, also called e-signatures, provide an efficient way to sign documents online to reduce paperwork and streamline transactions. E-signatures also help protect documents with enhanced security and authentication techniques. As a result, e-signatures have gained popularity worldwide, helping businesses meet their objectives efficiently.
E-signatures: A competitive edge for Nigerian enterprises
Nigeria's digital transformation is in full swing, with e-signatures at the heart of this shift. The country is actively embracing digital tech to boost its economy and improve efficiency across various sectors. Initiatives like the National Digital Economy Development and Strategy (NDEDS) aim to create a digital ecosystem that encourages innovation and growth. E-signatures play a major role in this as they streamline business processes, reduce paperwork, and accelerate transactions. This digital shift isn't just modernising Nigerian businesses; it's positioning the country as a key player in Africa’s digital economy.
Compared to physical signatures, electronic signatures provide significant advantages in terms of:
- Speed
- Efficiency
- Enhanced authentication
- Robust security
- Remote accessibility
- User experience
- Cost-effectiveness
The widespread adoption of
e-signatures in Nigeria
E-signatures are utilised in a range of sectors, offering secure and efficient solutions for modern business needs.
- Banking and Finance
- Legal
- Retail and ecommerce
- Education
- Healthcare
- Government services
- HR
- Technology
- Telecommunications
E-signatures in Nigeria
Nigeria's shift into the digital age has transformed the way businesses, government agencies, and legal entities operate. With the increasing adoption of e-signatures in Nigeria, it is essential to understand the legal framework governing their use. The key regulations include:
- Evidence Act of 2011 ("Evidence Act")
- Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 ("Cybercrimes Act")
- Cybercrimes (Prohibition, Prevention, etc.) (Amendment) Act of 2024.
Acceptance of electronic signatures in Nigerian law
The Evidence Act does not define or categorise electronic signatures. Instead, it acknowledges them broadly, allowing for flexibility in their use and verification.
When the law mandates a signature or outlines consequences for its absence, an electronic signature satisfies that requirement. According to Section 93(3) of the Evidence Act, electronic signatures can be proven in various ways, including methods that require a person to have executed:
- A symbol, (or)
- A security procedure
These methods are used to verify that an electronic record belongs to the individual in question.
Evidentiary value of electronic signatures in Nigeria
According to Section 17 of the Cybercrimes Act, electronic signatures shall be binding with respect to 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.
In Nigeria, the law treats electronic signatures and handwritten signatures equally in terms of admissibility. However, it's important to note that certain transactions do have restrictions on the use of electronic signatures.
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.
Ensuring e-signature compliance for Nigerian businesses with Zoho Sign
Section 93 of the Evidence Act allows electronic signatures to be proved "in any manner;" even a simple electronic signature can satisfy Nigerian legal requirements. Zoho Sign makes it easy for businesses to comply with Nigerian regulations by providing a secure e-signature solution, allowing them to sign documents with confidence.
Identification and reliability:
Zoho Sign employs strong authentication techniques, such as OTP authentication and PKI-based digital signatures using digital certificates, to ensure the e-signature identifies the signatory.
Intention of the signatory:
This can be collectively projected by the contents of the electronic documents (like terms in an agreement), audit trail, and completion certificate.
Control over the data being signed:
Only the signatory is allowed to review the document before signing and provide choices to make changes or reject the document if necessary.
Enhanced security:
Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents documents and data exposure in the case of data breaches.
Detectable alterations:
Zoho Sign ensures any alterations to the electronic signature or the document to which the signature is affixed are detectable through an elaborate audit trail of all activities during the signing process. This audit trail comprises critical information, such as the identity of the signatory, the timestamp of the signature, and changes made to the document.
Document timestamping
A digital timestamp is a digitally signed notation that is appended to the electronic data, digital signature , or certificate that indicates that certain digital data exists at a certain point in time. This process securely binds the date and time to the document, ensuring its authenticity and integrity.
Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered, adding a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.
Key takeaway
In Nigeria's quest for complete digitisation, e-signatures are essential for building strong, secure automated business processes. Zoho Sign emerges as a trusted partner, delivering a streamlined e-signature solution that ensures compliance with Nigeria's e-signature laws, the Evidence Act, and the Cybercrimes Act. This enables businesses to operate efficiently while fostering a more digitally-driven business environment. Try Zoho Sign today and experience simplicity of effortless digital transactions, enhanced security, and the freedom to thrive in a paperless world.
Resources
- Evidence Act, 2011
- Cybercrimes (Prohibition, Prevention, etc) Act, 2015
- Cybercrimes (Prohibition, Prevention, etc) (Amendment) Act, 2024
Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.