The new “National Digital Economy and E-Government Bill” might turn out to be an albatross, much like the one described in Samuel Taylor Coleridge’s The Rime of the Ancient Mariner. Coleridge’s line, “…water, water, everywhere, nor any drop to drink,” captures the irony of our current situation. This bill, rather than providing solutions, could be burdening the telecommunications sector with even more challenges.
The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, recently boasted that the new bill, once enacted, could revolutionise Nigeria’s economy, projecting a revenue of $18.3 billion by 2026. However, this seems more like wishful thinking or, at best, a gamble. Does the minister realise that, like much else in our struggling economy, the telecommunications sector is also facing significant challenges? At a time when all efforts should be directed toward mitigating these issues, the question arises: Should the minister be pushing for a new law that claims to boost the economy by $18.3 billion? Perhaps there are motivations behind this bill that are not immediately apparent.
One might wonder if the minister believes that imposing a new law—one that would create additional layers of regulation and burden operators—will make a positive difference. Stakeholders, however, are concerned that such a brazen law, which appears self-serving, is the last thing the sector needs, especially when foreign investments are already in decline due to the shaky state of the economy.
If this bill becomes law, it could be an albatross hanging over everyone’s necks, including the minister’s. These fears were voiced clearly last week in Lagos when stakeholders gathered to review the sector. They concluded that there are far more pressing issues than introducing a new law at this time. The discussions were filled with lamentations and no one saw a light at the end of the tunnel.
Even the usually restrained voices couldn’t keep their composure. We are all victims of poor network services, and operators claim to be helpless, citing various reasons, particularly a lack of funds due to declining investments and mounting losses. Despite the minister’s obsession with pushing this bill through, there are more troubling days ahead for the telecommunications industry.
At the Lagos gathering, Bolaji Balogun, a pioneer in the telecommunications revolution and one of the original promoters of Econet Wireless Nigeria (now Airtel), spoke candidly. Balogun, who worked alongside Strive Masiyiwa during the digital mobile license (DML) bidding in January 2001, emphasised that the sector requires a minimum of $1 billion in yearly investments if we are to escape the current quagmire and achieve robust telecommunications services.
The event, hosted by Bismarck Rewane’s Financial Derivatives Limited, was well-attended. However, the minister was conspicuously absent, while stakeholders bemoaned the sector’s pitiable state, especially now that foreign investors are reluctant to bring their money into a wobbling economy.
“No investor would be excited to bring in one dollar only to get 66 cents in return,” lamented one stakeholder. The situation is dire, and one would think that the minister should be more interested in raising the investment profile of the sector before hurriedly packaging a bill that he claims will be a game changer. But how? This was the question on everyone’s lips last week.
It appears the minister is running a solo race, having not earned the confidence of industry players—except for those who flatter him. Even those who once supported his appointment are now on the sidelines, waiting for him to fail. Their reasoning is that he has jumped ship and should now swim or sink alone. As one worried stakeholder put it, “The minister went to sleep too early, forgetting that much work remains to revive the sector—certainly not with his fancy bill.”
The Global System for Mobile Communications Association (GSMA) has echoed these concerns, warning that the telecom industry’s financial health in recent years has been insufficient to support its capital-intensive operations. In its 2024 report on the Nigerian digital economy, the GSMA pointed out that high inflation levels have driven up costs for mobile service providers, further impacting profitability and investment potential.
Balogun, who heads Chapel Hill Denham, stressed that the sector’s yearly investment of $1 billion is crucial for meeting the country’s service quality standards. “We cannot secure this nation without improving our digital infrastructure,” he stated. “Our digital infrastructure has the power to transform Nigeria’s economy. While significant investments have been made, much more work remains and this requires more funds.”
The economic downturn has been exacerbated by the Central Bank of Nigeria’s (CBN) unification of the foreign exchange market in June 2023, leading to a sharp devaluation of the naira. The currency plummeted from N471/$ before the move to N1,043.09/$ by December 28, 2023 and further to N1,570.99/$ by August 12, 2024. This devaluation has inflicted heavy losses on the telecom sector, with Airtel Africa and MTN Nigeria reporting a combined N1.29 trillion in foreign exchange (FX) losses alone. MTN Nigeria also posted its first loss since its 2019 listing on the Nigerian Stock Exchange, recording a N137 billion deficit.
Foreign investment in Nigeria’s telecom sector has also plummeted, dropping from $456.83 million in 2022 to $134.75 million in 2023, according to the National Bureau of Statistics (NBS).
An astute analyst recently wrote about the new bill, highlighting a particularly concerning section. In Part XV, under ‘miscellaneous,’ which is annotated as Supremacy of National Digital Economy and E-Governance Act, the bill—which is confusingly called an Act—states: “Notwithstanding the provisions of any other law but subject to the provisions of the Constitution of the Federal Republic of Nigeria, in all matters relating to the digital economy and e-government, the provisions of the Act shall override the provisions of any other law.” The regulatory agency is further empowered to establish regulations on the use and adoption of new and emerging technologies as they relate to information technology.
This bill’s provisions would override existing laws, including the Cybercrimes (prohibition, prevention, etc.) Act of 2015; the Nigerian Communications Act of 2003; the National Broadcasting Commission Act (Cap N11, Laws of the Federation of Nigeria, 2004) and the National Information Technology Development Agency (NITDA) Act of 2007. In fact, there is already a controversial bill at the National Assembly seeking to amend the existing NITDA Act. Now, this new bill is aiming to replace it entirely.
“This particular bill will set up a regulator for the digital space, which may be given the rapacious opportunity to swallow up other Acts before it,” the analyst noted. “That may be the only way to accommodate a new regulator at a time when the current administration is trying to trim the size of governance. The dollar sign is only a ruse, a smokescreen that will evaporate at the approach of reality.”
Another analyst explained that while the bill aims to enable e-government and boost digital literacy among government workers, Section 62 of the draft seeks to override the provisions of any other law in all matters relating to digital economy and e-government. This could create imminent power tussles between existing government agencies, each of which already handles some aspect of what the bill covers.
According to the minister, the National Digital Economy and E-Governance Bill “will enable government businesses, including contracts, to be conducted electronically.” He confirmed that the National Information Technology Development Agency (NITDA) would be responsible for implementing the bill once it is passed. This bill seems to be picking up where the previous minister left off after a failed attempt to smuggle in a new bill that would have imposed NITDA’s authority over everyone.
By reintroducing this specter of a bill, the minister may know more than we do. The Digital Economy and E-Governance Bill mandates electronic records and contracts within government organizations. It also imposes a fine of not less than ₦1 million per individual and not less than ₦10 million for corporations that fail to comply with the frameworks, guidelines and regulations under the act.
Strangely, this new bill also seeks to create a new ICT division that is not in harmony with existing laws established by the Nigerian Communications Commission (NCC) and NITDA. Analysts worry that instead of creating an amorphous law, the minister could have sent a working paper to the President, suggesting that different institutions collaborate to achieve e-governance. The ultimate goal should be the success of a collaborative bill development process.
But the minister thinks otherwise. “The Digital Economy Bill will bring Nigeria closer to e-governance when enacted. The country lags behind other African nations—Ghana, Mauritius, South Africa and Tunisia—that have high e-government development indexes. The move will also contribute to Nigeria’s goal of increasing digital literacy rates.”
The new bill, once enacted, would centralise significant regulatory powers within NITDA, whose original 2007 Act limited its scope to research, development and policies for ICT growth. NITDA would then wield enormous authority over the sector, including infrastructure development and management—areas previously under the purview of the NCC. This would lead to a dirge for the foremost regulator of repute.
The new bill, once passed into an Act of Parliament, would gradually confine the NCC to the annals of history. The document is so skillfully crafted that even legal experts are bewildered.
