All over Africa and the world, many public and private bodies have migrated their respective businesses and other information systems online.
Nigeria is not exempted as Information solutions in both the private and public sectors now drive service delivery in the country through digital systems. This has increased the importance of having an institution that focuses on data protection and privacy.
NDPR (Nigeria Data Protection Regulation)
The Nigeria Data Protection Regulation (NDPR) of 2019, as a subsidiary legislation to the National Information Technology Development Agency (NITDA) Act 2007, has increased awareness about the need for data protection and privacy.
The NDPR was issued by the National Information Technology Development Agency (NITDA). The NDPR makes provision for the rights of data subjects, the obligations of data controllers and data processors, transfer of data to a foreign territory among others.
NDPB (Nigeria Data Protection Bureau)
Upon the request of the Minister of Communication and digital economy Prof. Isa Ali Ibrahim (Pantami) President Muhammadu Buhari has approved the establishment of the Nigeria Data Protection Bureau (NDPB).
The Bureau will be responsible for consolidating the gains of the NDPR (Nigeria Data Protection Regulation) and supporting the process for the development of primary legislation for data protection and privacy.
It is hoped that this move by the Nigerian government would be the starting point of its embrace of tech start-ups as policies it implemented in the past few years have directly strangled the growth of Tech start-ups in the country.
Infrastructure Deficit Kills Tech Start-ups in Nigeria.
In June 2018, Omotola Onifade, a software developer who graduated from a private university in Ogun State, left the shores of Nigeria for Canada to start an online grocery delivery start-up.
He had tried to launch a similar start-up in Lagos in 2015 but it failed after less than a year of operation. He said multiple challenges, including poor electricity to keep the groceries fresh at all times, logistical problems, and high running expenses swept the business off its feet.
Factors that Weaken Nigerian Tech Sector
Despite the significant moves made by the government many weaknesses still plague the Tech sector. Among them are that:
• Few targets have been set by the government for Nigeria’s tech sector development.
• Nigerian regulations lag behind in addressing digital challenges and framing the ICT and tech entrepreneurship domain in the country.
• Where objectives have been indicated, the activities to reach them are poorly formulated.
• There is little evidence of local innovation and development of technology
• No national programs have been charged with popularizing technology or creating a favourable environment for related research.
• No real effort has gone into developing a national system for scientific and technologic activities, although access to such a system is a prerequisite for technology development.
• Nigeria’s reputation of policy volatility has created a risk-averse attitude from potential investors in the tech space, both locally and internationally.
Federal Government of Nigeria Strangling the Development of the Tech Sector.
On the 5th of February 2021, a directive issued by the Central Bank of Nigeria (CBN) announced a ban on the exchange of cryptocurrency, going further by asking banks to immediately close accounts that had exchanged cryptocurrency.
Although the CBN justified its directive by citing a high risk of fraud in the crypto market, John Colston, Chief Marketing Officer of Yellow Card Financial, a popular crypto exchange platform with 50 percent of Nigerian users, says, “there are many tools and software in the market that can be used to track and audit vast amounts of chain crypto data, making it almost impossible to successfully get away with crypto fraud.”
Some months after the crypto ban, the government took several further measures which experts say may endanger the growth of Nigeria’s Fintech scene.
In April 2021, the government stopped Fintech from offering Bank Verification Numbers – a security measure against money laundering, fraud, and other forms of corruption – as a service.
In the same month, the Securities and Exchange Commission of Nigeria (SEC) warned Nigerians against investment technology platforms such as Bamboo and Chaka that allow users to trade in foreign stocks.
The government has presented these policies as a way to strengthen the nation’s economy, but there are lingering questions about whether the government is cracking down on a sector that played a key role in recent anti-government protests.
Conclusion
Nigerian regulations lag behind in addressing digital challenges and framing the ICT and tech entrepreneurship domain in the country. The main reason for this is that tech start-ups are quite recent and authorities with executive powers are not all informed enough to steer the right discussions.
The lack of clarity and established implementation guidelines are other challenges. Unilateral, and impulsive regulations by the Lagos State Government in the past two years have adversely affected tech companies such as Gokada and Uber to mention a few.
Collaboration, engagement, and consultation with the tech community is imperative if the Tech sector in Nigeria is to experience real growth.