NITDA: Dev’t, a regulatory agency covering other sectors

Author: Omoba Kenneth Aigbegbele

The National Information Technology Development Agency (NITDA), established under the NITDA Act, 2007 to regulate standards, guidelines and frameworks for the development and standardization of information technology practices in Nigeria, is also demanding an update of the bill in the National Assembly for the last five years (from 2021).

The NITDA bill, first proposed in 2021, seeks to repeal Law No. 28 of 2007 on the National Development of Information Technology and enact the National Information Technology Development Agency Law.

Changes in the proposal include provisions for new categories of licenses, royalty fees, 1% tax on pre-tax profits for companies with revenues exceeding 100 million naira and imprisonment for defaulting parties.

In 2022, the Federal Executive Council (FEC) considered the bill and went a step further to introduce it in the National Assembly. A public hearing was held at the National Assembly on December 23, 2022, during which stakeholders from the Nigerian tech ecosystem commented on the bill.

Since its announcement earlier this year, the bill has sparked much controversy over its purpose and compatibility with other technology-related laws, most notably the recently proposed Start-Ups Act.

Among the various proposals tabled in the National Assembly is that Section 6(a) (a) of the applicable Act states that NITDA is both a development and regulatory agency in the ICT sector.

However, the argument that NITDA is not a regulatory body was therefore found to be incorrect and a total of thirty-one (31) interested parties made representations and presentations on the draft bill. However, of this number, seventeen (17) were in favor of the bill and fourteen (14) were against it.

Supporters justified their support on the grounds that the bill envisaged the development of measures that would adequately regulate digital infrastructure, accelerate Nigeria’s transition to a leading digital economy, support innovation and creativity, empower businesses in the country, improve the issuance and authentication of good character certificates, and promote use of technology in education and other sectors.

The committee recommended that the Senate adopt the bill after taking into account the comments and opinions of interested parties contained therein. The bill provides that the Senate Committee on ICT and Cybersecurity, hereinafter referred to as the “Draft Act, repealing Act No. 28 of 2007 on the National Agency for Information Technology Development and adopting the Act on the National Agency for Information Technology Development on ensuring administration, Implementation and regulation of IT systems and practices , and the Digital Economy in Nigeria and Related Matters, 2023 (SB1082), after considering the same, the report on the matter has favorably recommended to the Senate to pass the bill as amended,” the committee’s second reading report said.

Never before has a bill sought to usurp the powers of other regulatory bodies and make NITDA the super regulator in the ICT industry. Many stakeholders also said that the bill could reverse the gains already made and achieved in the digital economy. On the other hand, some stakeholders agreed that the bill has many merits and that it will clean up the industry and bridge the knowledge gap between Nigeria and other developed countries regarding the digital economy.

Citizens Watch Advocacy Initiative (CWAI), a civil society organization that advocates for accountability, good governance and transparency in Nigeria, believes that the bill, if passed into law, will have a huge positive impact on the telecommunications and ICT industry in Nigeria as it will ultimately lead to increased confidence of both local and international investors in the telecommunications and ICT sector of the Nigerian economy, thereby transforming the development agency into a regulatory body that will strengthen the activities of other interested sectors such as banking, financial services, insurance, care health, trade education, agriculture, telecommunications, etc.

NITDA’s role under the proposed bill will not create direct conflicts with other industry regulators that the naive claim. As such, the NITDA Act 2022 will stabilize the regulatory environment in the telecommunications sector in Nigeria and attract much-needed foreign direct investment as well as domestic investment in the telecommunications and ICT sector in the country.

In a press release signed by the Executive Secretary of CWAI, Omoba Kenneth Aigbegbele, stated that based on the investigation, the bill seeks to enact an Act that will empower NITDA to provide for the administration, implementation and regulation of information technology systems and practices in Nigeria, which will automatically transform NITDA from a mere development agency to a regulatory agency in the sector that needs all the support, cooperation of Nigerians and stakeholders.

Because it is the first of its kind in the annals of history that will connect the country’s digital knowledge base and holistically impact the development of the sector in all spheres. The statement further added that the essence and purpose of the bill is to create an effective, impartial and independent regulatory framework for the development of Nigeria’s information technology sector and digital economy.

Convinced of the proactive nature of the Act, CWAI categorically states that the proposed NITDA Act focuses on tax start-ups and in Part VI, para. 16 of the Act provides for the creation of the NITDA Fund, which will be entirely used for the purposes of “development of the digital economy and related purposes” and nothing else.

CWAI also notes that the human capital skills deficit that hinders the country’s development in the global digital economy would be overcome once and for all, and would also enhance the country’s global digital competencies in the future, thereby expanding the services sector.

CWAI, therefore, enjoins the tech ecosystem and tech entrepreneurs to raise their voices and join the clear call for all hands to be on deck for Nigeria to achieve a large value chain that facilitates youth engagement, entrepreneurship development, MSME development and women empowerment; that will position and empower a rich, vibrant local industry of digital training providers with globally recognized standards that can best compete anywhere. Therefore, NITDA should be appreciated and provided with the necessary support and stakeholder engagement to pursue this new initiative that will make updating the Act possible and acceptable to all.

In this regard, CWAI recognizes that NITDA has consistently driven an information technology policy geared towards improving Nigeria’s global acceptance and certification in the digital economy where local, foreign partners and stakeholders are present in an effective, efficient and affordable value chain for the development of the ICT sector and telecommunications industry, building and strengthening Nigeria’s digital capacity and creating jobs for millions of young people in the country, as well as economic diversification for emerging technologies.

CWAI holistically supports NITDA’s pursuits, innovations and ideas in formulating digital policies that will position Nigeria in the global arena and market of the future. CWAI is therefore advocating for regulatory status for NITDA to accelerate the development of other emerging sectors of the economy.