Senate Advances Bill Requiring Social Media Firms to Establish Nigerian Offices

The Senate passed a Bill mandating social media companies to set up offices in Nigeria, aimed at improving digital regulation and economic opportunities. Sponsored by Senator Ned Munir Nwoko, the Bill addresses the lack of local presence of major platforms while enhancing job creation and technology transfer. It received unanimous support from the Senate and has been referred to the Senate Committee on ICT and Cyber Security.

On Tuesday, the Senate passed a Bill for a second reading aimed at amending the Nigeria Data Protection Act, 2023. This legislation mandates that multinational social media companies establish physical offices within Nigeria. Sponsored by Senator Ned Munir Nwoko from Delta North, this 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), was first read on November 21, 2024.

In leading the debate, Senator Nwoko stressed the Bill’s significance in safeguarding Nigeria’s digital sovereignty and enhancing economic opportunities while ensuring better regulation of online platforms. Despite Nigeria being among the largest global social media user bases, companies such as Facebook, X, Instagram, YouTube, and TikTok do not maintain physical offices in the country.

Nwoko remarked, “Nigeria ranks first in Africa and second globally in daily social media usage, yet these multinational companies operate here without any physical presence. This creates a gap in addressing regulatory concerns, managing content policies, and building local partnerships.” He outlined three main issues arising from the lack of physical offices: limited local representation, missed economic opportunities, and challenges in legal redress.

He further explained, “The lack of a local presence creates a disconnect between the platforms and their Nigerian user base. Resolving user complaints, addressing regulatory concerns, or managing content moderation issues specific to Nigeria often takes longer due to the geographical and cultural distance.”

The Senator elaborated on how the absence of these offices has resulted in lost economic opportunities. He stated, “Economically, it denies Nigeria the benefits of job creation in areas such as customer service, content moderation, legal compliance, and marketing. Imagine the thousands of young Nigerians who could be employed by these companies, gaining valuable skills and contributing to our economy.”

Moreover, he claimed that local partnerships could lead to significant technology transfer, similar to successful models in countries like China and South Korea, which fostered local collaborations to boost their industries.

“The legal implications of their absence are equally concerning. Without physical offices in Nigeria, enforcing data protection laws, resolving disputes, and safeguarding user rights becomes a complex process,” Nwoko added. He contended that the proposed Bill aims to simplify this by ensuring platforms have a local presence to respond to the needs of Nigerian users and comply with national laws.

Senator Nwoko emphasized that the establishment of offices by social media companies would not only create jobs but also facilitate better technology transfer and local regulatory compliance. He compared this initiative to the advantages enjoyed by multinational corporations like MTN, Shell, and Chevron that have contributed positively to Nigeria’s economy through local operations.

Additionally, the Bill proposes that all bloggers operating in Nigeria must possess a verifiable office in any of the country’s capitals and belong to a national bloggers’ association headquartered in Abuja, which he believes will enhance accountability and professionalism in the digital media sector. The Bill received unanimous support from the senators, with Senate President Godwill Akpabio noting that the legislation aims to generate more tax revenue for the government, and not to stifle media freedom. Subsequently, the Bill was referred to the Senate Committee on ICT and Cyber Security.

In conclusion, the recent passage of the Bill mandating social media companies to establish physical offices in Nigeria aims to address the growing concerns regarding digital sovereignty, local representation, and economic opportunities in the country. Senator Nwoko’s advocacy for this legislation highlights the potential benefits, including job creation and technology transfer, while emphasizing the importance of local regulatory compliance. The unanimous support from the Senate suggests a collective recognition of the necessity for such a measure to protect Nigerian users and enhance the digital ecosystem.

Original Source: businessday.ng