Senate passes bill mandating social media companies to have Nigerian offices

The Senate on Tuesday passed for a second reading, a Bill seeking to amend the Nigeria Data Protection Act, 2023, to mandate multinational social media companies to establish physical offices within Nigeria.

The proposed legislation, 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 sponsored by Senator Ned Munir Nwoko (Delta North).

The Bill was read for the first time on November 21, 2024.

Leading the debate, Nwoko emphasised the importance of the Bill in protecting Nigeria’s digital sovereignty, boosting the economy, and ensuring better regulation of online platforms.

He noted that despite Nigeria being one of the largest social media user bases globally, platforms such as Facebook, X , Instagram, YouTube, and TikTok do not maintain physical offices in the country.

Nwoko said, “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.”

The lawmaker outlined three key concerns arising from the absence of physical offices for these platforms.

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These include limited local representation, missed economic opportunities, and difficulty in legal redress.

He explained further, “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.”

Nwoko explained that the absence of physical offices has deprived us of numerous 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.

“Technology transfer is another area where Nigeria stands to benefit immensely. Countries like China and South Korea became leaders in electronics and automobile manufacturing by fostering local partnerships with foreign firms and adapting their technologies.

“If these social media giants establish a local presence, Nigerian engineers, developers, and tech professionals will have the opportunity to learn from some of the best minds in the world and adapt cutting-edge technologies.”

“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.

“This Bill seeks to simplify this process by ensuring that these platforms are physically present to respond to the unique needs of their Nigerian users and comply with our laws,’ he added.

He argued that having social media companies establish offices in Nigeria would create job opportunities, enhance technology transfer, and facilitate compliance with local regulations.

Nwoko also highlighted how multinational corporations like MTN, Shell, Chevron, Nestlé, and Total have benefited Nigeria’s economy by establishing local offices, creating jobs, and fostering industry growth.

He urged social media companies to follow suit.

Additionally, the Bill proposes that all bloggers operating in Nigeria must have a verifiable office in any of the country’s capital cities and belong to a recognized national association of bloggers headquartered in Abuja. Nwoko said this measure would enhance professionalism and accountability in the digital media space.

The Bill was unanimously supported by senators.

Godwill Akpabio, the Senate President acknowledged the debate and explained that the bill intended to generate more funds through taxes for the Federal Government and not to gag the media.

The bill was. thereafter, referred to the Senate Committee on ICT and Cyber Security.