The Nigeria's Tech Ecosystem Rejects A Bill That Purport To Ascribe More Power To NITDA

  

By Ologbonde Boluwatife

Nigeria’s tech ecosystem is rejecting a bill put forward by the country’s ICT policy-implementing government agency, but the unrelenting agency is somehow pushing the bill forward—amid contentions and ecosystem cries of foul play.

Source: Tech Cabal.

The controversial bill that ascribes more power to NITDA is gaining grounds across Nigeria's legislature, amid ecosystem cries of foul play. A controversial bill that seeks to ascribe new powers to the National Information Technology Development Agency (NITDA), Nigeria’s governing body for information and technology, has passed a public hearing at the Senate and will soon make its way to the presidency.

TechCabal broke the news that Nigeria’s Federal Executive Council was considering a new bill put forward by NITDA. This bill would repeal the NITDA Act of 2007, and enact a new NITDA Act that provides for “the administration, implementation, and regulation of IT systems and practices, as well as the digital economy in Nigeria and for related matters”. Under the bill, NITDA would be responsible for issuing permits and licences to these companies, as well as establishing and managing a fund. This move means that NITDA, mostly known for its work as a digital development agency, is seeking to punch its weight as a super regulator of the tech ecosystem. The fund would be financed by collecting a standard 1% profit before tax from companies with annual turnovers exceeding ₦100 million ($216,000).

Several ecosystem stakeholders have decried the bill, with the Association of Licensed Telecommunications Operators of Nigeria (ALTON) labelling it as an incoming “bundle of chaos”. But this has done nothing to stop the bill’s advancement. The present situation is that NITDA is on its way to becoming the prime regulator of “operators in Nigeria’s information and technology sector”, raising concerns about what this portends for the Nigerian tech ecosystem.

Babalakin and Co, a leading commercial law firm in Nigeria, pointed out that the bill confers powers on NITDA which transcends beyond being a regulator. According to them, section 9(i) of the bill proposes that NITDA functions as a “coordinator” and “supervisor” over the activities of incorporated entities which are wholly or partly owned by the government—-and this is not in line with global best practices.

Big tech companies including Google and Meta have also decried the levies and ambiguousness of the bill, asserting that giving NITDA the position to “issue permits and authorisations” to tech companies is not in line with global best practices.

What happens if the bill is passed?

The NITDA Bill, if not amended, portends a new phase for the technology and communications ecosystem in Nigeria. What this phase would look like can’t be known fully now, but many ecosystem players seem to imagine the dawn of innovation-crippling regulations.