Nigeria Must Reclaim Its Digital Wealth Through Fair Market Access and Stronger Regulation
Nigeria Must Reclaim Its Digital Wealth Through Fair Market Access and Stronger Regulation
By Joseph Iyaji | Akahi News
As Nigeria’s digital economy continues to expand, experts have warned that the country risks enriching global shareholders at the expense of its own citizens unless new policies are enforced to ensure fair market access and domestic value retention.
According to insights obtained by Akahi News, the core issue lies in the imbalance between Nigeria’s massive digital demand and the economic benefit returned to its local ecosystem. Many foreign technology firms, particularly those embedded in telecom operations, generate vast profits from Nigerian users but contribute little in terms of taxes, local jobs, or infrastructure development.
Need for Joint Licensing and Local Incorporation
To correct this imbalance, analysts have proposed the creation of a joint licence category between the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) for telco-embedded credit and airtime advance services.
Such a framework would require all companies offering these services to operate through locally incorporated and regulated entities, ensuring they are fully accountable under Nigerian law.
Data processing for Nigerian subscribers should also take place within the country’s borders, using cloud environments that comply with national data-protection laws. This measure would not only safeguard user data but also build local technical capacity and trust in the digital ecosystem.
Transparency, Tax, and Local Participation
The proposal also calls for greater transparency in telecom contracts, insisting that agreements should be non-exclusive and structured to ensure that consumers, not just corporate intermediaries, share in the benefits.
To close revenue leakages, experts recommend coordinated tax audits involving the Federal Inland Revenue Service (FIRS), CBN, and NCC. This would prevent tax evasion and ensure that multinational firms contribute fairly to Nigeria’s fiscal growth.
Additionally, when foreign technology firms list on overseas stock exchanges, they should be required to offer Nigerian investors participation opportunities through depositary receipts or equivalent investment vehicles, allowing the local capital market to share in the gains derived from Nigerian consumers.
Enforcing Reciprocity and Value Retention
Akahi News gathered that the current legal frameworks—such as the Nigeria Data Protection Act (NDPA), NITDA’s local content rules, and the Significant Economic Presence framework—already provide the tools to ensure fair participation. However, the major challenge remains coordinated enforcement across regulatory agencies.
Analysts argue that the solution does not lie in shutting out foreign technology firms but in renegotiating the terms of engagement to ensure that those who profit from Nigerian markets also invest meaningfully in its growth.
As one expert put it, “If foreign firms wish to monetise Nigeria’s data and demand, the price of admission must be measured in jobs, taxes, skills, intellectual property, and shared capital-market inclusion.”
The Next Six Months: A Crucial Window
Over the next half-year, regulators are being urged to:
- Issue a joint NCC–CBN notice formalising licensing for telco-based credit services.
- Direct mobile operators to reveal and revise exclusivity clauses in existing contracts.
- Clarify how platform fees between interlinked companies should be taxed.
- Ensure data residency and compliance through NITDA.
- Enable Nigerian depositary participation in offshore listings tied to local operations.
A New Digital Compact for Nigeria
Nigeria’s path forward is clear: the country must remain open to global technology partnerships but insist on value reciprocity. The digital wealth generated within Nigeria should not flow entirely outward—it must circulate within the nation to create jobs, build expertise, and strengthen the economy.
Market access should no longer be a one-way street. If global firms seek Nigeria’s scale, they must also contribute to building Nigeria’s wealth.
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