The Senate has moved a step closer to requiring global social media companies operating in Nigeria to establish physical offices in the country, following overwhelming support from stakeholders at a public hearing held on Thursday in Abuja.
The hearing, organised by the Senate Committee on Information and Communications Technology (ICT) and Cyber Security, also saw stakeholders endorse a separate bill seeking to establish 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, to require global social media platforms operating in Nigeria to maintain physical offices within the country.
The second bill, sponsored by Senator Yemi Adaramodu (Ekiti South), Chairman of the Senate Committee on Media and Publicity, proposes the establishment of an Artificial Intelligence Academy to promote education, research and innovation in AI.
Opening the public hearing, Chairman of the Senate Committee on ICT and Cyber Security, Senator Shuaib Salisu (Ogun Central), said both pieces of legislation were designed to strengthen Nigeria’s digital economy and position the country for technological advancement.
According to him, while the social media bill is aimed at improving regulation and accountability within Nigeria’s digital space, the AI Academy will serve as a centre for artificial intelligence education, research and innovation.
President of the Senate, Godswill Akpabio, represented by the Deputy Senate Leader, Senator Lola Ashiru (Kwara South), described both proposals as strategic and beneficial to the country’s future.
He stressed that the bill requiring social media companies to establish offices in Nigeria was not intended to hinder their operations but to encourage greater accountability and closer engagement with the country.
Defending the proposed legislation, Senator Nwoko dismissed claims that the bill was anti-investment or designed to frustrate technology companies.
“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 lawmaker argued that several countries with smaller populations and digital markets than Nigeria had successfully attracted major technology firms to establish local operations.
“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,” he said.
Nwoko maintained that the proposed law is intended to strengthen the presence of global technology firms in Nigeria rather than drive them away.
He noted that countries including the United Kingdom, India, the United Arab Emirates, South Africa and Brazil have benefited from hosting local offices of global technology companies, which carry out engineering, artificial intelligence research, legal compliance, customer support, product development and other operations.
“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,” he stated.
Using Ireland as an example, Nwoko said the presence of companies such as Meta, Google, LinkedIn, TikTok and X had transformed the country into one of Europe’s leading technology hubs through increased investment, innovation and job creation.
He argued that Nigeria, as Africa’s largest digital market, should not be left behind.
“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 Senate committee is expected to review memoranda submitted by stakeholders before presenting its report to the Senate for further legislative consideration.
