A Bill seeking to amend the Nigeria Data Protection Act (NDPA), 2023, to compel social media platforms, data controllers and data processors operating in Nigeria to establish and maintain physical offices in the country has been introduced in the Senate of the National Assembly, raising significant questions about the potential benefits and risks posed by the proposal.
The proposed legislation, sponsored by Senator Ned Nwoko, representing Delta North Senatorial District, seeks to empower the Nigeria Data Protection Commission (NDPC) to mandate relevant digital platforms and data-processing entities to maintain a physical presence within Nigeria’s territorial boundaries.
Titled “A Bill for an Act to Alter the Nigeria Data Protection Act, 2023, LFN, 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,” the Bill proposes the insertion of a new provision into Section 5 of the current NDPA.
Under the proposed amendment, the Commission would be required to mandate all data controllers, data processors and operators of social media platforms to establish and maintain a physical office in Nigeria.
The Bill stipulates that any entity that fails to comply with the requirement for a continuous period of 30 days would be liable to a prohibition from conducting operations within Nigeria.
The proposed legislation also seeks to introduce new definitions into Section 65 of the NDPA to clarify the entities and obligations covered by the amendment.
It defines data controllers as entities that determine the purposes and means of processing personal data and bear legal responsibility for compliance with data protection laws, while data processors are defined as entities that process personal data on behalf of data controllers based on specific instructions.
The Bill also defines operators of social media platforms as legal persons or entities responsible for owning, managing or controlling digital platforms that facilitate user interaction, content sharing or communication.
Under the proposed amendment, a physical office would mean a fixed and operational business location within Nigeria, staffed and authorised to engage with regulators, stakeholders and the public for the purpose of fulfilling legal and operational obligations.
The Bill defines social media platforms as digital or online networks operated by legal entities that enable users to create, share and interact with content, including text, images, videos and other forms of communication, while facilitating public or private social interaction.
According to the Explanatory Memorandum accompanying the Bill, the proposed amendment is intended to improve the ability of Nigerian authorities and users to resolve complaints involving social media platforms and other entities handling personal data, as it is expected that requiring such entities to maintain physical offices in Nigeria would facilitate the swift resolution of complaints, strengthen stakeholder confidence and promote compliance with global best practices.
The proposed requirement, the memorandum adds, is also expected to deliver economic and security benefits to Nigeria.
The Bill is now expected to undergo the legislative process, including consideration and debate by the National Assembly.
