Controversial NITDA Bill Could Harm Nigeria's Digital Economy, Warns ATCON

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The Association of Telecommunications Companies of Nigeria (ATCON) has raised concerns over the National Information Technology Development Agency (NITDA) bill, which it believes could adversely affect Nigeria’s digital economy if passed into law.
- ALTON Shares Fears with Senate and House of Representatives Joint Committee on ICT and Cybersecurity

The Association of Telecommunications Companies of Nigeria (ATCON) has raised concerns over the National Information Technology Development Agency (NITDA) bill, which it believes could adversely affect Nigeria’s digital economy if passed into law.

According to Tony Emoekpere, the national president of ATCON, the bill seeks to make the NITDA a full-fledged regulator in the digital economy, a role that the Nigeria Communications Commission (NCC) already performs.

ATCON believes that the bill if passed into law, will duplicate regulatory functions and make the country less attractive to foreign investors. Emoekpere expressed concern about reduced capital importation into the industry and loss of confidence by both local and international investors.

ALTON Shares Fears with Senate and House of Representatives Joint Committee on ICT and Cybersecurity

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has also expressed concerns about the NITDA bill to the Joint Committee of the Senate and House of Representatives on ICT and Cybersecurity. The association seeks to be excluded from the bill, as it fears that the agency’s proposed regulations, guidelines, and standards about the use of information technology and digital services will conflict with the functions of the NCC, resulting in conflicting regulations for telecommunications companies in Nigeria.

NITDA Bill Seeks to Reflect Nigeria’s Increased Presence in the Global Tech Scene

The NITDA bill seeks to repeal the 2007 Act that created it, claiming it would reflect Nigeria’s increased presence in the global tech scene. Nigeria has made significant technological advancements in recent years, accommodating many startups that offer innovative products and services. President Muhammadu Buhari signed the Nigerian Startup Act into law, which was a great step in the right direction. However, stakeholders have called for the NITDA bill to be revised and for President Buhari to be cautious about approving the contentious legislation.

The Most Problematic Portion of the Bill is Section 6

Section 6 of the NITDA bill is perhaps the most problematic portion, as it accords the agency’s power to “implement all Government policies on information technology and digital economy.” It also allows the NITDA to fix licensing and authorization charges, collect fees and penalties, sanction erring individuals or bodies, invade company premises, and more.

The bill also creates a National Information Technology Development Fund, which the NITDA claims will be used to advance Nigeria’s digital economy objectives and related purposes. Section 13 (2a) expects companies and enterprises with an annual profit of $100,000,000 to pay a 1% levy before tax, and grants, gifts, and endowments are among other proposed revenue streams. Additionally, the bill states that all finances in the NITDA’s fund will be exempt from income tax.

ATCON Chairman Warns of Reduced Capital Inflow

ATCON’s national president warns that the NITDA bill, in its current form, could undo the achievements of Nigeria’s digital sector. He cautions that allowing an agency originally tasked with guiding the country toward digital transformation to become a regulator of regulators is unwise. Moreover, the bill’s slew of taxes and sanctions for contravening the new regulations does not make Nigeria an attractive business spot. The ATCON chairman warns that capital inflow will reduce, portraying Nigeria negatively. Unless the bill is revised with all the tricky sections expunged, the future could be grim.

Efforts Should be Made to Bolster Nigeria’s Economic Growth

For a country struggling with persistent inflation, a high unemployment rate, and unrest in many regions, efforts should be made to bolster Nigeria’s economic growth.