The Senate on Thursday advanced legislative efforts to compel global social media companies operating in Nigeria to establish physical offices in the country, as stakeholders overwhelmingly backed the proposal during a public hearing in Abuja.

The public hearing, organised by the Senate Committee on Information and Communications Technology and Cyber Security, also received broad support for a separate bill seeking to establish an Artificial Intelligence Academy in Omuo-Ekiti, Ekiti State.

The proposed legislation on social media platforms, sponsored by Ned Nwoko (Delta North), seeks to amend the Nigeria Data Protection Act, 2023, to mandate social media companies operating in Nigeria to maintain physical offices within the country’s territorial boundaries.

The AI Academy bill is sponsored by the Chairman of the Senate Committee on Media and Publicity, Yemi Adaramodu (Ekiti South).

Declaring the hearing open, Chairman of the Senate Committee on ICT and Cyber Security, Shuaib Salisu (Ogun Central), said the two bills were aimed at strengthening Nigeria’s digital economy and technological advancement.

According to him, while the social media bill seeks to improve the regulation and protection of Nigeria’s cyberspace, the proposed AI Academy is intended to serve as a centre of excellence for artificial intelligence education, research and innovation.

President of the Senate, Godswill Akpabio, represented by the Deputy Senate Leader, Lola Ashiru (Kwara South), described both proposals as forward-looking and nationally significant.

Akpabio said the bill requiring social media companies to establish physical offices in Nigeria was not intended to stifle their operations but to promote greater accountability and engagement with the country.

Also defending the bill, Nwoko dismissed concerns that the legislation could discourage investment or target technology companies.

He said, “This Bill is neither punitive nor hostile to innovation. It is not designed to frustrate investment or discourage technology companies from operating in Nigeria.

“On the contrary, it seeks to deepen their engagement with Nigeria by encouraging them to become true corporate citizens of our country.”

The lawmaker argued that many countries with smaller populations and digital markets than Nigeria had successfully attracted global technology firms to establish local operations.

“Around the world, major technology companies have established headquarters, regional offices, engineering centres and operational hubs in countries such as the United Kingdom, the Netherlands, Spain, Singapore, India, the United Arab Emirates, South Africa, Brazil, Australia, and Japan,” he said.

Nwoko dismissed concerns that the proposed legislation was aimed at targeting or discouraging global technology companies, insisting that it was intended to strengthen their presence and engagement in Nigeria.

He said many countries, including the United Kingdom, India, the United Arab Emirates, South Africa and Brazil, had attracted global technology firms to establish local offices that support engineering, artificial intelligence research, regulatory compliance, customer support and other operations.

“These offices perform diverse functions ranging from engineering and artificial intelligence research to legal and regulatory compliance, public policy, advertising, trust and safety, cloud services, sales, customer support and product development.

“These countries did not attract such investments by accident. They recognised early that the digital economy is now as important as the traditional economy.

“By encouraging global technology companies to establish local operations, they have created employment, expanded tax revenues, strengthened regulatory engagement, promoted innovation and encouraged technology transfer to their citizens,” he stated.

Citing Ireland as an example, Nwoko said the presence of companies such as Meta, Google, LinkedIn, TikTok and X had transformed the country into one of Europe’s leading technology hubs through job creation, innovation and increased foreign investment.

He argued that Nigeria, as Africa’s largest digital market, should enjoy similar economic and technological benefits.

“The question therefore is simple: if countries with significantly smaller populations and digital markets than Nigeria have secured these investments and benefits, why should Nigeria continue to stand on the sidelines? Why should Africa’s largest digital market not enjoy the same opportunities?”

The committee is expected to consider memoranda submitted by stakeholders before presenting its report to the Senate for further legislative action.