Sponsor of the bill, Senator Ned Munir Nwoko, said the proposed legislation is aimed at strengthening Nigeria's digital sovereignty, enhancing data protection, improving national security, boosting tax compliance and creating employment opportunities for Nigerians.
Speaking at the public hearing organised by the Senate Committee on ICT and Cyber Security, Nwoko argued that despite Nigeria being Africa's largest digital market with over 200 million people, many global technology companies continue to generate substantial revenue from Nigerian users without maintaining any meaningful physical presence in the country.
He described the situation as one that has deprived Nigeria of jobs, investment opportunities, technology transfer and improved regulatory engagement.
According to him, countries such as the United Kingdom, Ireland, India, Singapore, the United Arab Emirates, South Africa, Brazil and Japan have attracted significant investments from global technology firms by encouraging them to establish regional headquarters, engineering centres and operational offices within their jurisdictions.
The senator said the proposed amendment is not intended to discourage investment but to encourage technology companies to become responsible corporate citizens by maintaining local operations and engaging directly with Nigerian institutions.
Nwoko explained that the bill seeks to require social media platforms, data controllers and processors doing business within Nigeria to establish functional offices in the country to facilitate regulatory oversight, consumer protection and compliance with Nigerian laws.
He added that the legislation would also strengthen national security by providing law enforcement agencies with direct institutional channels to engage digital platforms in tackling criminal activities conducted through their services.
The lawmaker cited recent incidents in which criminal elements allegedly used social media platforms, including TikTok Live, to communicate publicly during kidnapping operations, stressing that local offices would enable faster cooperation between the companies and Nigerian authorities.
He further noted that companies handling and monetising the personal data of millions of Nigerians should maintain a local presence to ensure accountability under Nigeria's data protection laws and prompt compliance with lawful regulatory directives.
According to Nwoko, the bill would also improve tax administration by making it easier for authorities to monitor revenues generated from Nigerian users and ensure compliance with applicable tax laws.
He maintained that requiring global technology firms to establish offices in Nigeria would create employment, encourage local procurement, support innovation and facilitate technology transfer through partnerships with Nigerian professionals, startups and educational institutions.
The senator urged stakeholders participating in the public hearing to make constructive contributions that would help produce legislation capable of advancing Nigeria's digital economy while protecting the country's national interests.
He expressed confidence that the proposed law would position Nigeria to derive greater economic and technological benefits from its rapidly growing digital ecosystem.
