Stakeholders Raise Concern over NITDA’s Bill, Say it Will Lead to Regulatory Overlap

Emma Okonji

Members of the Association of Licensed Telecom Operators of Nigeria (ALTON), Association of Telecom Companies of Nigeria (ATCON) and Paradigm Initiative are worried over the current draft National Information Technology Development Agency (Repeal and Re-Enactment) Bill 2021, which seeks to convert the National Information Technology Development Agency (NITDA) from a development agency to a regulatory agency.

The bill seeks to enact an Act that will empower NITDA to provide for the administration, implementation and regulation of Information Technology Systems and Practice in Nigeria, but the stakeholders are worried that the bill, if passed into law, will lead to overlapping regulatory functions between NITDA and the existing industry regulator, the Nigerian Communications Commission (NCC)

Some of the members, who spoke on the basis of anonymity, told THISDAY that the bill, if passed into law, could slowdown development in the telecom sector, affect inflow of Foreign Direct Investments (FDI) into the country, affect broadband and ICT penetrations and also reduce telecom contribution to Gross Domestic Product (GDP) because there would be overlapping functions that would duplicate the roles of the NCC.

The bill, which was presented to members of the Joint Committee of the Senate and House of Representatives on ICT and Cyber Security last week for public hearing, was however, not discussed, because some committee members observed that it was not proper to hold public hearing on such bill, when the promoters of the bill were absent from the public hearing.

CEO of Paradigm Initiative, Mr. Gbenga Sesan, in a statement, said the provisions in the draft bill have far reaching implications for the social media and technology organisations. “Paradigm Initiative is currently working on a paper that will state our position and it will be submitted to the National Assembly as soon as we are done,” Sesan said.

NITDA had on March 10, 2022, invited industry stakeholders to review the draft National Information Technology Development Agency (Repeal and Re-Enactment) Bill 2021 before presenting it to the National Assembly for consideration and passage into law. In the draft bill, which THISDAY sighted, Section 1 stated the objectives of the bill, and explained that the purpose was to create an effective, impartial, and independent regulatory framework for the development of the Nigerian information technology sector and digital economy, but the review from industry players explains that the section lays the foundation of converting NITDA from an IT Development Agency to a regulatory outfit. The review further said the inclusion of the concept of ‘Digital Economy’ as part of its regulatory purview expands NITDA’s frontiers to matters within the exclusive regulatory mandate of the NCC, and will impact on the commission’s functions in Section 4 of the Nigerian Communications Act 2003; that empowers the NCC to regulate communications services that drive the digital economy.

Section 9 of the bill empowers NITDA to develop a framework for regulating the use, development, standardisation, research, and application of information technology, emerging technology and digital services, activities, and systems in Nigeria, but the review puts it that Section 4 (1) (h) of the Nigerian Communications Act 2003, mandates the NCC to develop and monitor performance standards and indices relating to the quality of telephone and other communications services and facilities supplied to consumers in Nigeria having regard to the best international performance indicators. The review therefore explains that the section will create a regulatory overlap for matters that relate to setting standards for communications services in Nigeria.

The bill also empowers NITDA to issue permits and authorisation, including renewal, suspension, and revocation conditions to promote free market operation and competition, among others, but in the review, stakeholders explained that such provisions would create unnecessary duplication and an avenue for multiple regulation, as telecommunications operators will be required, under the provisions of the bill, to obtain separate permits or licences from NITDA, in addition to the operating licences  issued by NCC. This will result in duplication of functions, over-regulations, and inter-agency conflicts, according to the review. The stakeholders are of the view that NITDA remains a development agency, while NCC remains the industry regulator as enshrined in the NITDA Act 2007 and NCC Act 2003 respectively.