The Senate on Thursday moved closer to requiring global social media companies operating in Nigeria to establish physical offices in the country, following overwhelming support for the proposal at a public hearing in Abuja.
The hearing, organised by the Senate Committee on Information and Communications Technology 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), proposes an amendment to the Nigeria Data Protection Act, 2023, to make it mandatory for social media companies operating in Nigeria to maintain physical offices within the country.
The AI Academy bill is sponsored by the Chairman of the Senate Committee on Media and Publicity, Senator Yemi Adaramodu (Ekiti South).
Declaring the hearing open, Chairman of the Senate Committee on ICT and Cyber Security, Senator Shuaib Salisu (Ogun Central), said both bills were designed to strengthen Nigeria’s digital economy and position the country for greater technological advancement.
According to him, the social media bill is intended to enhance accountability, regulation and protection within Nigeria’s digital space, while the proposed AI Academy would serve as a centre of excellence 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 timely and of national importance.
He said the requirement for social media companies to establish offices in Nigeria was not aimed at restricting their operations but at promoting greater accountability, regulatory engagement and investment in the country.
Defending the bill, Nwoko rejected claims that the proposal could discourage foreign investment or target 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,” he said.
The lawmaker argued that many countries with smaller populations and digital markets had successfully attracted global technology firms to establish local offices supporting engineering, artificial intelligence research, regulatory compliance, customer service and product development.
“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 said.
Nwoko cited Ireland as an example, noting that the presence of global technology companies such as Meta, Google, LinkedIn, TikTok and X had helped transform 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 enjoy similar benefits.
“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?” he asked.
The committee is expected to review memoranda submitted by stakeholders before presenting its report to the Senate for further legislative consideration.
