The Centre for Information Technology and Development (CITAD) has rejected a proposed bill seeking to compel social media platforms and other data controllers to establish physical offices in Nigeria, warning that the move could undermine digital rights, innovation and inclusion.
Mr Ali Sabo, CITAD’s Digital Rights Lead, expressed the concern while briefing newsmen on Friday in Kano on the proposed amendment to the Nigeria Data Protection Act, 2023.
“The bill, sponsored by Sen. Ned Munir-Nwoko, seeks to mandate all data controllers, data processors and operators of social media platforms to establish and maintain physical offices within Nigeria.
“It also proposes that any affected entity that fails to establish a physical office within 30 days could be prohibited from operating in the country” he said
Sabo said that while CITAD supported efforts to strengthen data protection, regulatory oversight and accountability, the proposed blanket requirement for physical offices was disproportionate and could have adverse consequences for Nigeria’s digital ecosystem.
He said the measure would create unnecessary barriers for technology companies, digital platforms, online services and data processors operating across borders.
According to him, the requirement could particularly affect start-ups, non-profit organisations, open-source projects and smaller technology firms that may lack the financial capacity to establish and maintain physical offices in Nigeria.
“The proposed amendment could inadvertently reinforce the dominance of large technology companies while creating an uneven digital environment in which only the biggest corporations can afford to comply.
“This would undermine competition, innovation and the development of home-grown digital alternatives,” he said.
Sabo also faulted the proposed legislation for adopting what he described as a one-size-fits-all approach by applying the same requirement to all data controllers, processors and social media platforms, irrespective of their size, operations or level of risk.
He argued that regulatory obligations should be risk-based, proportionate and targeted at entities whose activities pose significant risks to the privacy and rights of Nigerians.
The digital rights advocate noted that the Nigeria Data Protection Act, 2023 already provides a legal framework for protecting personal data and regulating organisations processing Nigerians’ data.
He, therefore, urged authorities to focus on strengthening the implementation and enforcement of existing provisions rather than introducing new requirements with unintended consequences.
Sabo further maintained that accountability, consumer complaints and regulatory engagement could be effectively managed through digital channels and designated local representatives without compelling every affected entity to establish a permanent physical office.
He warned that excessive regulatory requirements could discourage some global platforms and service providers from operating in Nigeria, thereby limiting access to digital services.
According to him, such a development would disproportionately affect young people, entrepreneurs, small businesses, civil society organisations and communities that depend on digital platforms for education, communication, advocacy and economic activities.
CITAD urged the National Assembly to subject the proposed amendment to extensive consultations involving digital rights groups, technology companies, data protection experts, civil society organisations, consumer groups and other relevant stakeholders.
The organisation also called on lawmakers to consider alternative measures, including requiring foreign data controllers to appoint authorised representatives in Nigeria, strengthening the Nigeria Data Protection Commission, enhancing cross-border regulatory cooperation and adopting risk-based compliance obligations.
Sabo maintained that Nigeria required a regulatory environment that protected citizens’ privacy and strengthened accountability without restricting access to digital services or stifling innovation.
CITAD also appealed to the sponsor of the bill and the National Assembly to reconsider the proposed blanket physical-office requirement and work with stakeholders to develop a balanced framework that promotes digital rights, inclusion, competition and innovation.