The Nigerian Senate has passed a bill requiring multinational social media companies to establish physical offices in Nigeria, aiming to enhance digital sovereignty, regulatory compliance, and economic growth. Sponsored by Senator Ned Munir Nwoko, the bill addresses issues of local representation and legal recourse, while also promoting job creation and technology transfer in the country.
On Tuesday, the Nigerian Senate passed a bill mandating social media companies to establish physical offices within the country as part of amending the Nigeria Data Protection Act of 2023. Senator Ned Munir Nwoko of Delta North sponsored the bill, titled “A Bill for an Act to Alter the Nigeria Data Protection Act, 2023, to Mandate the Establishment of Physical Offices within the Territorial Boundaries of the Federal Republic of Nigeria by Social Media Platforms, and for Related Matters, 2024” (SB. 648). This bill was first presented on November 21, 2024.
During the debate, Senator Nwoko emphasized the bill’s importance in safeguarding Nigeria’s digital sovereignty, enhancing economic opportunities, and improving the regulation of online platforms. Despite having a large user base, platforms like Facebook, Instagram, YouTube, and TikTok operate without local offices, creating regulatory and partnership gaps in Nigeria.
Nwoko outlined three main issues stemming from the absence of physical offices for these platforms: limited local representation, missed economic opportunities, and challenges in legal recourse. He noted that the lack of local presence hinders the effective resolution of user complaints and regulatory concerns, prolonging responses due to cultural and geographical disparities.
The senator further discussed how this situation drives economic losses by preventing job creation in sectors such as customer service and legal compliance, which could aid in developing local talent. He stated, “Imagine the thousands of young Nigerians who could be employed by these companies, gaining valuable skills and contributing to our economy.” Additionally, he mentioned that technology transfer with major foreign firms could benefit local professionals significantly.
The legal complexities posed by the absence of local offices include difficulties in enforcing data protection laws and resolving disputes. Nwoko advocated for the establishment of offices to better cater to the unique needs of Nigeria’s digital landscape, facilitating regulatory compliance and enhancing user rights.
Nwoko illustrated that multinational companies like MTN and Chevron have positively influenced Nigeria’s economy through job creation and local industry partnerships, urging social media firms to follow a similar path. The bill also requires all bloggers operating in Nigeria to have a verifiable office in a state capital and to be part of a recognized national bloggers’ association to promote professionalism.
The bill received unanimous support, with Senate President Godwill Akpabio noting its potential to generate public funds through taxation rather than suppressing media activity. Subsequently, the bill was referred to the Senate Committee on ICT and Cyber Security for further scrutiny.
The proposed legislation aims to strengthen Nigeria’s position in the digital economy by mandating social media companies to establish physical offices within the country. This move is expected to enhance local regulatory compliance, reduce legal complexities, and unlock economic opportunities for Nigerian citizens through job creation and technology transfer. By drawing on the experiences of successful multinational corporations, the bill seeks to foster a balanced digital environment that benefits both the market and its users.
Original Source: businessday.ng
