Facebook, TikTok and other global social media companies operating in Nigeria may soon be forced to set up physical offices in the country as the Senate moves to pass a bill aimed at beefing up regulatory oversight and deepening their engagement with Africa’s largest digital market.
The proposal was broadly supported at a public hearing held by the Senate Committee on Information and Communications Technology and Cyber Security in Abuja on Thursday. The committee also considered another bill seeking the establishment of an Artificial Intelligence (AI) Academy in Omuo-Ekiti, Ekiti State.
The bill on social media platforms sponsored by Senator Ned Nwoko (Delta North) seeks to amend the Nigeria Data Protection Act, 2023 to make it mandatory for social media companies operating in Nigeria to have physical offices within the country’s territorial boundaries.
The bill sponsored by Senator Yemi Adaramodu (Ekiti South) is to promote education, research and innovation in artificial intelligence in Nigeria.
At the hearing, Chairman, Senate Committee on ICT and Cyber Security, Senator Shuaib Salisu (Ogun Central) said the two proposals are aimed at strengthening Nigeria’s digital economy and positioning the country for more technological advancement.
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The President of the Senate, Godswill Akpabio, represented by the Deputy Senate Leader, Lola Ashiru (Kwara South), said the two bills were strategic initiatives that will drive national development.
According to him, the move to compel social media companies to establish offices in Nigeria was not to impede on their operations but to improve on accountability, regulatory engagement and their contribution to the economy of the country.
Nwoko defended the proposal, dismissing suggestions the legislation was hostile to technology companies or foreign investment.
“This Bill is not punitive, it is not hostile to innovation. “It is not intended to frustrate investment or to discourage technology companies from operating in Nigeria,” he said.
Rather, it seeks to deepen their engagement with Nigeria by encouraging them to become true corporate citizens of our country.”
Countries like United Kingdom, India, United Arab Emirates, South Africa, Brazil and Ireland have benefited from hosting regional offices of global technology firms through increased employment, tax revenues, innovation and technology transfer, the lawmaker said.
“Major technology companies have established headquarters, regional offices, engineering centres and operational hubs in countries such as the United Kingdom, the Netherlands, Spain, Singapore, India, the United Arab Emirates, South Africa, Brazil, Australia and Japan globally,” he said.
“These offices serve a range of functions, including engineering and artificial intelligence research, legal and regulatory compliance, public policy, advertising, trust and safety, cloud services, sales, customer support and product development.
Not by accident did such investments find their way to these countries. They grasped early on that the digital economy is now as important as the traditional economy. “We brought jobs, increased tax revenues, increased regulatory engagement, spurred innovation and encouraged technology transfer to our citizens,” he said by encouraging global technology companies to set up shop locally.
He said given that Nigeria has one of the largest digital markets in Africa, it should not be left behind in attracting similar investments.
The Senate committee is expected to examine memoranda filed by stakeholders after the public hearing and make its recommendations to the Senate for further legislative consideration.
