NIGERIA Law and Practice Contributed by: Tiwalola Osazuwa, Peretimi Akinmodun, Lazarus Uwa Kalu and Mubaraq Popoola, ǼLEX
A lack of comprehensive regulations for emerging technologies While there are sector-specific regulations which may address the challenges posed by the adop - tion of these emerging technologies, there is no specific law in Nigeria that regulates these tech - nologies and the peculiar legal challenges that may arise from their adoption. Tackling cybercrimes With the continuous growth of the Nigerian digital economy comes the need to safeguard cyber - space from cyber threats to ensure adequate data security and transaction integrity. In 2022, the CBN reported a 534% increase in attempted cyber-attacks as digital banking surged. For the digital economy to thrive, it is imperative to pri - oritise measures geared towards improving the security of cyberspace. Taxation Due to the pervasive nature of the internet, busi - nesses located outside Nigeria can offer their products and services to individuals in Nigeria using digital technologies. However, taxing these companies poses a challenge for tax authorities as it is difficult for the tax authority to accurately track and identify the income generated from online businesses. Lack of awareness of intellectual property The digital economy is powered by intellectual property assets. However, many creators of cop - yrighted works are unaware of the full extent of the rights granted to them under the CA 2022. This lack of awareness often results in insuffi - cient enforcement of intellectual property rights. 1.2 Digital Economy Taxation Companies Income Tax (CIT) The worldwide profits of a Nigerian company, including profits derived from the provision of
ensures an enabling regulatory and business environment for start-ups in Nigeria. The NSA provides incentives for start-ups, including tax and fiscal incentives and other general incentives. • The Copyright Act 2022 (the “CA 2022”). The CA 2022 provides comprehensive protection for literary, artistic, musical, and audiovisual works, granting creators exclusive rights over their original creations. As a result, no indi - vidual may use copyrighted works without the permission of the creator. A key provision of the CA 2022 empowers copyright holders to request service providers, such as social media platforms, to take down content that infringes on their copyright. • The Advertising Regulatory Council of Nigeria Act 2022. The Act is the primary legislation for regulating advertising practices in Nigeria. It defines an advertisement as any message aimed at influencing an individual’s opinion or actions regarding a product, service, idea, or person, regardless of the medium or platform used. The Act established the Advertising Regulatory Council of Nigeria (the “ARCON”) and grants it authority to regulate all forms of advertising directed at the Nigerian audi - ence. Organisations are required to obtain prior approval from the Advertising Standards Panel (the “ASP”) before exposing adverts to the Nigerian public. The ARCON has recently intensified enforcement actions against com - panies advertising on social media without securing approval from the ASP. Legal Challenges in Relation to the Digital Economy Key legal challenges affecting the digital econo - my in Nigeria include the following.
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