By Chimezie Godfrey
The Centre for Information Technology and Development (CITAD) has rejected a proposed amendment to the Nigeria Data Protection Act, 2023, which seeks to compel social media platforms, data controllers and data processors to establish physical offices in Nigeria, warning that the move could undermine digital rights, innovation and the country’s digital economy.
Addressing journalists, the organisation said the bill, sponsored by Senator Ned Munir Nwoko, though aimed at strengthening data protection and regulatory oversight, contains provisions that could discourage investment, stifle innovation and limit access to digital services.
CITAD noted that the proposed legislation would require all affected entities to establish and maintain physical offices within Nigeria, adding that any organisation that fails to do so within 30 days could be prohibited from operating in the country.
The organisation argued that while enhancing accountability and protecting users’ data are legitimate objectives, making physical offices compulsory for all digital platforms is excessive and could create unnecessary barriers for technology companies operating across borders.
According to CITAD, the requirement would particularly affect start-ups, non-profit organisations, open-source projects and smaller technology firms that may lack the financial capacity to establish offices in Nigeria.
It warned that the proposal could inadvertently strengthen the dominance of large global technology companies while making it difficult for emerging digital platforms and indigenous innovators to compete.
CITAD further observed that the bill adopts a one-size-fits-all approach by imposing identical obligations on all data controllers, processors and social media operators, irrespective of their size, operational scope or level of risk.
The organisation maintained that regulatory measures should instead be risk-based and targeted at entities whose operations pose significant threats to the privacy and rights of Nigerians.
It also pointed out that the Nigeria Data Protection Act, 2023, already provides a comprehensive legal framework for protecting personal data, stressing that government should prioritise effective implementation and enforcement of existing provisions instead of introducing new requirements with unintended consequences.
CITAD argued that accountability and complaint resolution can be achieved through digital channels, authorised local representatives and effective regulatory engagement without mandating permanent physical offices for every covered entity.
The group proposed that high-risk foreign data controllers and processors should instead be required to appoint authorised representatives in Nigeria, maintain accessible communication channels for regulators and users, and comply with lawful requests from Nigerian authorities.
It also expressed concern that the proposed amendment could negatively affect digital inclusion by prompting some global platforms to scale back or withdraw services from Nigeria due to increased compliance costs.
According to the organisation, such a development would disproportionately affect young people, entrepreneurs, small businesses, civil society organisations and other users who depend on digital platforms for education, communication, advocacy and economic opportunities.
CITAD therefore urged the National Assembly to subject the bill to wider consultations involving digital rights organisations, technology companies, data protection experts, consumer groups, start-ups and other relevant stakeholders before taking further legislative action.
The organisation also recommended strengthening the powers of the Nigeria Data Protection Commission, improving cross-border regulatory cooperation, adopting risk-based compliance measures and enforcing existing data protection laws instead of imposing blanket physical office requirements.
CITAD called on Senator Ned Munir Nwoko and the National Assembly to reconsider the proposal and develop a balanced regulatory framework that protects personal data while promoting digital rights, innovation, competition and inclusion.
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