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Lawyers Challenge N10m Fine In Nigeria’s Digital Economy ,  E-governance Bill

by Ngozi Ibe
October 22, 2024
in E-Commerce, Technology
Digital

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Legal experts at Olisa Agbakoba Legal (OAL) have raised concerns about the provision of a N10 million fine for breaches in Nigeria’s National Digital Economy and E-governance Bill. The bill, currently under review in the National Assembly, aims to establish a comprehensive legal framework for the country’s digital economy, encompassing areas like electronic transactions, data protection, cybersecurity, and digital infrastructure.
The section outlining offenses and penalties has drawn particular scrutiny. It mandates a N10 million fine for violations by public service institutions, private entities, or individuals. However, OAL’s legal team argues that the fine is disproportionate and impractical for most potential offenders.
“The fine amount is not only excessive but also unaligned with the salaries of employees in most institutions, making it nearly impossible for the government to enforce or recover such penalties,” the lawyers said in their review of the bill. They emphasized that the financial burden may not be commensurate with the severity of possible breaches under the law.
The lawyers further pointed out that imposing such a high fine could be especially problematic for individuals or smaller private entities, while public institutions would likely cover fines using government revenue, essentially negating any punitive impact on offenders.
In lieu of the N10 million fine, OAL’s legal experts recommended a range of alternative punishments. These include demotion, denial of promotion, termination of employment, and other disciplinary measures that could serve as more effective deterrents.
For corporate bodies, the lawyers argued that fines paid from government revenue would be counterproductive. “If the Chief Executive Officer is held responsible, the penalty should focus on their accountability, including removal from office if necessary. This would serve as a more meaningful deterrent than merely shifting the financial burden onto government funds,” they noted.
Another key issue raised by the lawyers is the potential for regulatory conflicts. Part 13 of the bill gives the National Information Technology Development Agency (NITDA) concurrent jurisdiction with other regulatory bodies on matters related to the digital economy and electronic governance. It also grants NITDA the authority to establish regulations for emerging technologies in the information technology sector.
OAL’s review warned that this overlapping jurisdiction could lead to clashes between NITDA and other government agencies with existing regulatory authority over the digital space. They described this section of the bill as “misleading” and cautioned that without clearer delineation of responsibilities, regulatory turf wars could arise, undermining the effectiveness of the law.
Despite these concerns, the lawyers acknowledged the bill’s potential to drive Nigeria’s digital transformation. They noted that the bill, if passed and properly implemented, could accelerate the country’s growth in the digital economy and enhance its global standing.
However, they emphasized that for the bill to have a significant impact, Nigeria must first address key challenges like infrastructure development, digital literacy, and robust cybersecurity enforcement. Without these foundational elements, the bill’s provisions may fail to deliver on their promise.
During a recent media briefing in Abuja, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, expressed optimism about the bill’s potential. He highlighted that once passed into law, the bill would provide a much-needed legal framework to accelerate progress in Nigeria’s digital economy.
Dr. Tijani underscored that the bill would support the use of technology across various sectors of the economy, positioning Nigeria as a leader in the digital space. He also noted that its implementation would span all six geopolitical zones of the country, ensuring nationwide impact.
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