The Senate on Thursday moved forward with efforts to require global social media companies operating in Nigeria to establish physical offices in the country, following overwhelming support from stakeholders at a public hearing in Abuja.
The Punch reported that the hearing, organised by the Senate Committee on Information and Communications Technology and Cyber Security, also garnered strong backing for another bill proposing the establishment of an Artificial Intelligence Academy in Omuo-Ekiti, Ekiti State.
The social media bill, sponsored by Senator Ned Nwoko (Delta North), seeks to amend the Nigeria Data Protection Act, 2023, by making it compulsory for social media companies operating in Nigeria to maintain physical offices within the country.
The proposed AI Academy is sponsored by the Chairman of the Senate Committee on Media and Publicity, Senator Yemi Adaramodu (Ekiti South).
Opening the hearing, Chairman of the Senate Committee on ICT and Cyber Security, Senator Shuaib Salisu (Ogun Central), said both bills were designed to enhance Nigeria’s digital economy and strengthen technological development.
He explained that while the social media legislation is aimed at improving the regulation and security of Nigeria’s cyberspace, the AI Academy would serve as a hub for artificial intelligence education, research and innovation.
President of the Senate, Godswill Akpabio, represented by Deputy Senate Leader Lola Ashiru (Kwara South), described the proposed legislations as timely and important to Nigeria’s future.
According to Akpabio, the requirement for social media companies to establish offices in Nigeria is intended to promote accountability and improve engagement with the country, rather than restrict their operations.
Presenting the bill, Nwoko rejected suggestions that the proposal could discourage investment or unfairly target technology firms.
He said, “This Bill is neither punitive nor hostile to innovation. It is not designed to frustrate investment or discourage technology companies from operating in Nigeria.
“On the contrary, it seeks to deepen their engagement with Nigeria by encouraging them to become true corporate citizens of our country.”
The senator maintained that several countries with smaller populations and digital markets than Nigeria had successfully attracted global technology companies to establish local operations.
He said, “Around the world, 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.”
Nwoko insisted the bill was not intended to target or discourage international technology companies but to encourage stronger local participation.
He noted that countries such as the United Kingdom, India, the United Arab Emirates, South Africa and Brazil host local offices of global technology firms supporting engineering, artificial intelligence research, regulatory compliance, customer support and other business functions.
He added, “These offices perform diverse functions ranging from engineering and artificial intelligence research to legal and regulatory compliance, public policy, advertising, trust and safety, cloud services, sales, customer support and product development.
“These countries did not attract such investments by accident. They recognised early that the digital economy is now as important as the traditional economy.
“By encouraging global technology companies to establish local operations, they have created employment, expanded tax revenues, strengthened regulatory engagement, promoted innovation and encouraged technology transfer to their citizens.”
Using Ireland as an example, Nwoko said the presence of firms including Meta, Google, LinkedIn, TikTok and X had helped transform the country into one of Europe’s leading technology hubs through employment, innovation and foreign investment.
He argued that Nigeria, being Africa’s largest digital market, should also benefit from similar opportunities.
He said, “The question therefore is simple: if countries with significantly smaller populations and digital markets than Nigeria have secured these investments and benefits, why should Nigeria continue to stand on the sidelines? Why should Africa’s largest digital market not enjoy the same opportunities?”
The committee will review memoranda submitted by stakeholders before presenting its report to the Senate for further legislative consideration.
