Experts warn of overlooked risks in new digital economy bill as Nigeria pursues digital transformation

Joy Agwunobi 

As Nigeria strives to establish a comprehensive legal framework for its burgeoning digital economy, the proposed National Digital Economy and E-Governance Bill has sparked a mix of optimism and caution among legal experts.

While the bill is seen as pivotal for advancing the country’s digital infrastructure and governance, lawyers at Olisa Agbakoba Legal (OAL) have raised critical questions about certain provisions, particularly those surrounding fines and enforcement.

The bill, which is currently awaiting approval in the National Assembly, aims to cover a wide array of issues, including electronic transactions, data protection, cybersecurity, and digital infrastructure. Yet, OAL’s review of the bill revealed several areas that could pose challenges to its effectiveness.

 A key point of contention is the proposed fine of N10 million for violations. The lawyers argue that such a hefty penalty may not be realistic, especially in cases involving public institutions with modest salaries and limited revenue streams.

For instance, while the bill targets offenses across public and private entities, OAL noted that the fine could place an undue burden on government bodies, potentially leading to fines being paid from the same public funds the law seeks to protect. “Imposing a N10 million fine might not achieve the intended deterrent effect,” the legal team noted, advocating for alternative sanctions such as demotion, loss of promotions, or even termination of employment for individuals responsible.

The lawyers suggested that holding corporate executives directly accountable through removal from office would not only be more practical but would also serve as a stronger deterrent. They questioned why the liability should rest on the corporate entity when the bill already outlines accountability measures for executives, emphasising that redirecting penalties towards personal responsibility could lead to greater enforcement efficiency.

Beyond the financial penalties, OAL’s review brought to light another critical issue which is  the overlapping regulatory mandates that could arise from the bill’s provisions.

Part 13 of the bill positions it above other laws in matters related to the digital economy and e-governance, effectively granting it supremacy. However, this provision also establishes concurrent jurisdiction for the National Information Technology Development Agency (NITDA), giving it overlapping authority with other established agencies. This, according to OAL, could lead to jurisdictional clashes and bureaucratic hurdles, potentially slowing down the pace of digital transformation.

The legal experts highlighted that while the bill is an essential step towards securing Nigeria’s place in the global digital economy, a clear delineation of responsibilities among regulatory bodies is crucial to avoid policy conflicts. This would allow NITDA and other relevant agencies to operate cohesively, promoting a more synchronised and effective digital governance landscape.

Despite their concerns, OAL emphasised that the bill presents a huge opportunity to shape Nigeria’s digital future. They underscored that to maximise its impact, foundational challenges must be addressed, such as enhancing digital literacy, developing robust infrastructure, and improving cybersecurity enforcement. With these in place, the bill has the potential to accelerate Nigeria’s journey towards becoming a digital leader in Africa.

At a recent media briefing, Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, reaffirmed the government’s commitment to using the bill to drive economic growth. He expressed confidence that the proposed legislation would provide a solid framework for integrating digital technologies across various sectors of the economy. Tijani explained that once passed, the bill would be implemented nationwide, ensuring that the benefits of digital transformation are not limited to urban areas but extend to all six geopolitical zones of the country.

The minister highlighted that the bill is not just about technology adoption but is also geared towards improving service delivery in critical sectors like education, healthcare, and financial services. By establishing a legal framework for digital governance, he noted, the bill would help streamline operations, reduce inefficiencies, and ultimately contribute to the country’s economic development.