The National Information Technology Development Agency (NITDA) has advocated a balanced and pragmatic regulatory framework as the Senate considers a bill seeking to compel global social media platforms and other digital service providers operating in Nigeria to establish physical offices in the country.
Presenting the agency’s submission at the public hearing organised by the Senate Committee on ICT and Cyber Security on Thursday, Barrister Emmanuel Edet, Acting Director, Regulation and Compliance Department and Head of the Legal Services and Board Matters Unit at NITDA,who represented the Director General of the Agency, Kashifu Inuwa Abdullahi, said while NITDA supported the broad objectives of the proposed legislation, a mandatory physical office requirement alone may not effectively deliver the desired outcomes.
The public hearing considered a bill sponsored by Senator Ned Munir Nwoko (Delta North), seeking to amend the Nigeria Data Protection Act, 2023, by mandating social media platforms, data controllers and data processors operating in Nigeria to establish and maintain operational offices within the country’s territorial boundaries.
The proposed amendment is intended to strengthen Nigeria’s digital sovereignty, improve regulatory oversight, enhance consumer protection, boost tax compliance, create employment opportunities and support national security.
Addressing lawmakers and stakeholders, Emmanuel Edet said NITDA shared the aspiration of ensuring greater accountability for multinational technology companies operating in Nigeria but cautioned that a mandatory physical office backed by a prohibition after 30 days of non-compliance may not, on its own, achieve the objectives of the bill.
“We support the objectives of the bill. However, a mandatory physical office enforced by prohibition after 30 days for non-compliance is not sufficient to achieve those objectives, and standing alone may not advance them at all,” he said.
According to him, experience has shown that some technology companies could technically comply with such a requirement by establishing offices that have little or no meaningful operational presence, thereby satisfying the letter of the law without fulfilling its underlying purpose.
“We have seen instances where technology companies comply in a very limited way by simply setting up an office without meaningful operations. Such compliance may satisfy the legal requirement but fail to address the concerns the legislation seeks to resolve,” he stated.
Edet also expressed concern over the broad scope of the proposed amendment, noting that the bill’s definitions of data controllers and data processors could inadvertently capture virtually every business both local and foreign that processes personal data.
He warned that such provisions could expose Nigerian businesses, particularly startups, to reciprocal regulatory measures by other countries, requiring them to establish physical offices abroad before offering digital services in those jurisdictions.
The NITDA representative further informed the committee that some of the objectives of the bill are already being addressed through existing regulatory instruments.
He explained that NITDA’s Code of Practice for Interactive Computer Service Platforms already requires major digital service platforms to be incorporated in Nigeria, with many of them complying by submitting annual reports on their activities and maintaining channels of engagement with regulators.
He added that the agency has established expedited communication mechanisms with major social media platforms, particularly for law enforcement requests and other regulatory matters requiring prompt attention.
Edet urged lawmakers to consider alternative regulatory mechanisms that would achieve the objectives of the bill without imposing unintended burdens on Nigeria’s digital ecosystem.
He proposed that the legislation should require accountable local representation rather than mandating every platform to establish a full-fledged physical office. According to him, appointing authorised representatives or liaison officers resident in Nigeria with the legal authority to receive court processes and engage regulators would ensure greater accountability while providing law enforcement agencies and the courts with direct channels of communication.
He also observed that many of the concerns the bill seeks to address extend beyond data protection and relate to consumer complaint resolution. He therefore advised that a dedicated legal framework be developed to regulate complaints handling by digital platforms, providing users with effective mechanisms for resolving disputes.
On enforcement, Edet cautioned against imposing an automatic nationwide prohibition on platforms that fail to comply with the proposed requirements. Instead, he advocated a graduated administrative sanctions regime that would apply proportionate penalties based on the severity of non-compliance.
He further recommended that lawmakers distinguish between globally significant public-facing platforms and smaller or specialised digital services, arguing that a one-size-fits-all regulatory approach could prove counterproductive and place unnecessary obligations on platforms that pose minimal regulatory concerns.
Reaffirming NITDA’s commitment to responsible digital governance, Edet said the agency remains fully supportive of legislative efforts aimed at strengthening accountability, protecting Nigerians’ data and enhancing trust in the country’s digital ecosystem.
“In all, what we are saying is that it is good to have appropriate regulation of social media platforms, but this is not the best way to achieve the goals and objectives outlined in the proposed amendment,” he said.
He also informed the committee that NITDA had submitted its memorandum electronically and would provide additional hard copies to facilitate the legislative process.
The Senate Committee on ICT and Cyber Security is expected to review memoranda and submissions from NITDA, government agencies, technology companies, civil society organisations and other stakeholders before presenting its recommendations to the Senate for further legislative consideration.
NITDA maintained that while Nigeria has every right to strengthen oversight of global technology companies operating within its jurisdiction, any regulatory framework adopted should strike a careful balance between accountability, innovation, investment and the continued growth of the country’s digital economy.
