A team of lawyers at Olisa Agbakoba Legal has expressed concerns over a provision in Nigeria’s National Digital Economy and E-governance Bill that imposes a N10 million fine for violations.
The bill, currently before the National Assembly, aims to establish a comprehensive legal framework for the digital economy, encompassing areas such as electronic transactions, data protection, cybersecurity, and digital infrastructure.
In their review of the bill, the lawyers argued that the penalty is disproportionate to potential breaches and does not align with the salaries of individuals working in public institutions. “This punishment section raises significant red flags; the fine amount is neither appropriate for the offenses nor likely to be recovered, as the government would struggle to enforce it,” they stated.
The lawyers suggested alternative penalties, including demotion, denial of promotion, and termination of employment, which they believe would be more effective deterrents. They also criticized the provision that holds corporate entities responsible for fines, arguing that the Chief Executive Officer should be personally liable instead.
“The Act specifies that the CEO is liable, yet the corporation is also held accountable. This could lead to government funds being used to pay fines, allowing the individual in charge to remain unpunished,” they noted.
Part 13 of the bill grants it overriding authority over any other laws relating to the digital economy and e-governance, though it remains subject to the Nigerian Constitution. This section also gives the National Information Technology Development Agency concurrent jurisdiction alongside other regulatory agencies, which the lawyers believe may lead to jurisdictional conflicts.
Describing Part 13 as misleading, the lawyers warned that it could result in clashes between NITDA and other government bodies that also regulate digital matters.
Despite their critiques, the lawyers acknowledged the bill’s potential to drive Nigeria’s digital transformation and enhance its global competitiveness. However, they emphasized that successful implementation will require addressing existing challenges in infrastructure, digital literacy, and cybersecurity enforcement.
“For the bill to be effective, Nigeria must confront these hurdles. With proper execution, it can unlock the full potential of Nigeria’s digital economy,” they asserted.
During a recent media engagement in Abuja, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, highlighted the bill’s role in fostering Nigeria’s digital agenda. He asserted that, once passed, it will provide a vital legal framework to support technological growth across all sectors of the economy, with implementation planned for all six geopolitical zones.
