Introduction

A Bill titled “A Bill for an Act to Amend 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”) has successfully passed its first and second reading in the Nigerian Senate and has been referred to the Senate Committee on Information Communication Technology (ICT) and Cybersecurity for further deliberations. The Bill aims to introduce a significant change on how operators of social media platforms, data controllers and data processors operate in Nigeria. We have highlighted the provisions of the Bill and have also highlighted some of its impact on the Nigerian data protection and digital economy landscape.

Key Provisions and Commentary

The available copy of the amendment Bill includes two main provisions, viz-a-viz:

Mandatory Physical Office Requirement: The Bill seeks to amend Section 5 of the Nigeria Data Protection Act, 2023 (NDPA) by introducing a new provision that will give power to the Nigeria Data Protection Commission (NDPC) to mandate all data controllers, data processors, and operators of social media platforms to establish/register and maintain physical offices situated within the territorial boundaries of the Federal Republic of Nigeria. The physical office is expected to be staffed and authorised to engage with regulators, stakeholders, and the public for the purpose of fulfilling legal and operational obligations. Failure to comply with this requirement for a continuous period of 30 days may render the entity liable to a prohibition from conducting operations within the jurisdiction of Nigeria.
Proposed Amendments to Terms and Interpretations: For the purpose of physical office requirement, the proposed amendment includes the definition of (a) Physical Office and (b) Operators of Social Media Platforms amongst others:

Physical Office: Physical Office means a fixed and operational business location within the Federal Republic of Nigeria.
Operators of Social Media Platforms: Operators of Social Media Platforms means legal persons or entities responsible for owning, managing, or controlling digital platforms that facilitate user interaction, content sharing, or communication.