Regulatory outlook for the technology sector in 2025

As 2025 unfolds, regulatory dynamics are set to play a significant role in shaping the business landscape. Many of these regulatory actions started to take shape toward the end of 2024 but are expected to have widespread impact this year.

While some developments are specific to certain industries, others have broader implications, influencing businesses across the technology sector and beyond.

Here are some key regulatory trends that will define the technology sector in 2025.

Digital Assets/Cryptocurrency Regulation

Following a very dynamic regulatory period for digital assets, the SEC’s Accelerated Regulatory Incubation Program (ARIP) Framework and the newly issued “Exposure of Amendments to the Rules on Digital Assets Issuance, Offering Platform, Exchange and Custody”, set to take effect in June 2025, may bring the much-needed stability in the digital assets landscape. However, while these rules are expected to bring clarity to the industry, they also introduce substantial compliance requirements that stakeholders must be prepared to navigate.

Data Privacy and Protection

Nigeria’s data protection landscape has seen significant growth in recent years, with the enactment of the Nigeria Data Protection Act (NDPA) and the establishment of the Nigeria Data Protection Commission (NDPC), in 2023. As part of its mandate under the Nigeria Data Protection Act (NDPA), the Nigeria Data Protection Commission (NDPC) issued a Guidance Notice, requiring the registration of Data Controllers and Processors of Major Importance (DCPMIs). However, parts of the Guidance Notice were challenged at the Federal High Court, and the court ordered the NDPC to, among other things; exclude SMEs as DCPMIs, clearly specify entities that do not qualify as DCPMIs, and to state DCPMIs exempt from registration.

While the NDPC is yet to issue a revised Notice, businesses should be aware of the potential impact of the decision.

Meanwhile, the NDPC has expressed its intention to strictly enforce the NDPA this year and impose significant fines on non-compliant entities. Interestingly, the FCCPC had also issued substantial penalty against Meta, in June 2024, for alleged data privacy and consumer protection violations.

Advertisements

In 2024, APCON sought to regulate companies’ social media posts as advertisements, requiring ASP certificates for posts it deemed ads (a classification that could apply to nearly every business post). This raised practical concerns, as vetting every social media post does not align with the fast-paced nature of digital platforms. Whether this step by APCON prompts a legal challenge or drives a shift toward a more innovative regulatory approach, one thing is clear: traditional advertising rules need to adapt to the realities of social media.

Lotteries and Gaming

In November 2024, the Supreme Court nullified the National Lotteries Act, upholding state’s powers to regulate lotteries and games of chance. This shift may create challenges for some operators, especially those who run online operations. With different regulatory frameworks and regulatory authorities, businesses in the gaming and lottery space must be prepared for higher compliance demands and costs. Notably, Lagos State, which led the legal challenge, has already required all operators to regularize their businesses with the state or face prosecution.

Artificial Intelligence Adoption

AI continues to generate buzz, raising complex legal and ethical questions. While Nigeria currently lacks AI-specific legislation, its rapid adoption will inevitably test existing laws on data protection, copyright, cybersecurity and consumer rights which have broader impact on AI adoption. It will be interesting to see how the regulators and the courts will adapt the existing laws to the realities of AI deployment.

The regulatory developments and increased compliance demands anticipated in 2025 make it a pivotal year for businesses. To navigate this landscape effectively, collaboration between regulators and operators is essential. Such partnerships will help ensure that innovation and economic growth are not undermined by regulatory constraints, while safeguarding consumer protection, enhancing satisfaction, and fostering a robust and inclusive digital economy.