The Centre for Information Technology and Development (CITAD) has opposed a proposed amendment to the Nigeria Data Protection Act, 2023, which seeks to compel social media platforms, data controllers and data processors operating in Nigeria to establish physical offices in the country.
The organisation warned that the proposed legislation, if passed in its current form, could undermine digital rights, discourage innovation, weaken competition and limit digital inclusion.
Addressing journalists on Friday, CITAD’s Digital Rights Lead, Ali Sabo, said while the organisation supports efforts to strengthen data protection, improve regulatory oversight and promote accountability, the proposed blanket requirement for physical offices was disproportionate and could have unintended consequences for Nigeria’s digital economy.
The bill, sponsored by Senator Ned Munir Nwoko, proposes that all data controllers, data processors and operators of social media platforms establish and maintain physical offices within Nigeria. It also provides that any affected entity that fails to do so for 30 consecutive days could be prohibited from operating in the country.
- CITAD Unveils Privacy-Focused Social Platform, Warns Against Big Tech Dominance
- CITAD urges universities to adopt ethical AI strategies in academia
According to Sabo, the requirement would create unnecessary barriers for technology companies, online service providers, start-ups, non-profit organisations and open-source projects that may lack the financial capacity to establish and maintain physical offices in Nigeria.
He warned that the amendment could inadvertently strengthen the dominance of large multinational technology companies while making it difficult for smaller firms and emerging digital platforms to compete.
“CITAD is concerned that 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 with the requirement,” he said.
Sabo argued that the bill adopts a one-size-fits-all approach by imposing identical obligations on all entities regardless of their size, operational scope or the risks associated with their data processing activities.
He maintained that regulatory obligations should instead be risk-based and proportionate, targeting organisations whose activities pose significant risks to the privacy and rights of Nigerians.
The digital rights organisation also noted that the Nigeria Data Protection Act, 2023, already provides a comprehensive legal framework for protecting personal data, stressing that priority should be given to strengthening enforcement of existing provisions rather than introducing broad physical-presence requirements.
According to CITAD, accountability and consumer protection can be achieved through digital mechanisms such as designated local representatives, accessible complaint channels and compliance with lawful regulatory requests, without requiring every digital platform to establish permanent physical offices.
The organisation further expressed concern that excessive regulatory requirements could discourage some international digital platforms from operating in Nigeria, thereby reducing access to online services relied upon by young people, entrepreneurs, civil society organisations and small businesses.
It urged the National Assembly to subject the proposed amendment to extensive consultations involving digital rights organisations, technology companies, data protection experts, civil society groups, consumer organisations and other stakeholders.
Rather than imposing a blanket physical office requirement, CITAD recommended that the National Assembly consider alternative measures, including requiring appropriate foreign data controllers and processors to appoint authorised representatives in Nigeria, strengthening the capacity of the Nigeria Data Protection Commission, improving cross-border regulatory cooperation, establishing effective digital complaint channels, adopting risk-based compliance obligations and enforcing existing data protection laws.
The organisation called on Senator Ned Munir Nwoko and the National Assembly to reconsider the proposal and develop a balanced regulatory framework that protects Nigerians’ personal data while promoting innovation, competition, digital rights and inclusion.
