Senate Urges Facebook, TikTok to Establish Physical Presence in Nigeria

Facebook, TikTok and other global social media companies operating in Nigeria may soon be required to set up physical offices in the country as the Senate moves to pass a bill seeking to beef up regulatory oversight and deepen their engagement with Africa’s largest digital market.

The proposal got wide backing on Thursday during a public hearing organised by the Senate Committee on Information and Communications Technology and Cyber Security in Abuja. The committee also considered another bill seeking the establishment of an Artificial Intelligence (AI) Academy in Omuo-Ekiti, Ekiti State.

Senator Ned Nwoko (Delta North) sponsored a bill on social media platforms, which seeks to amend the Nigeria Data Protection Act, 2023, to make it mandatory for social media companies operating in Nigeria to have physical offices within the country’s territorial boundaries.

The AI Academy bill, sponsored by Senator Yemi Adaramodu (Ekiti South), is aimed at fostering artificial intelligence education, research and innovation in Nigeria.

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Speaking at the hearing, Chairman, Senate Committee on ICT and Cyber Security, Senator Shuaib Salisu (Ogun Central), said the two proposals are targeted at strengthening Nigeria’s digital economy and positioning the country for greater technological advancement.

Deputy Senate Leader Lola Ashiru (Kwara South), representing President of the Senate, Godswill Akpabio, described the two bills as strategic initiatives that would aid national development.

He said the move to compel social media companies to set up offices in Nigeria was not to impede their operations but to enhance accountability, regulatory engagement and their contribution to the economy of the country.

Nwoko defended the proposal, dismissing suggestions that the legislation was hostile to technology companies or foreign investment.

“This Bill is not punitive, it is not hostile to innovation. It is not meant to frustrate investment or discourage technology companies from operating in Nigeria,” he said.

Rather, it seeks to deepen their engagement with Nigeria by encouraging them to become true corporate citizens of our country.”

The lawmaker said countries such as the United Kingdom, India, the United Arab Emirates, South Africa, Brazil and Ireland have benefitted from hosting regional offices of global technology firms through increased employment, tax revenues, innovation and technology transfer.

“Major technology companies have established headquarters, regional offices, engineering centres and operational hubs in countries such as the United Kingdom, the Netherlands, Spain, Singapore, India, the United Arab Emirates, South Africa, Brazil, Australia and Japan around the world,” he said.

“These offices carry out a range of roles 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.

“Such investments did not come to these countries by accident. They realized early on that the digital economy is now as important as the traditional economy. By encouraging global technology companies to set up shop locally, they have created jobs, increased tax revenues, strengthened regulatory engagement, spurred innovation and encouraged technology transfer to their citizens,” he said.

He argued that Nigeria, with one of the largest digital markets in Africa, should not be left behind in terms of attracting similar investments.

After the public hearing, the Senate committee is expected to review memoranda submitted by stakeholders before presenting its recommendations to the Senate for further legislative consideration.