The Nigerian Information and Technology Development Agency (NITDA) wants to gain more control over Nigeria’s technology sector and thus seeks for an amendment of its 2007 regulatory Act.
Unlike the 2007 regulatory act, NITDA is proposing that technology companies begin to pay high-end fees, undergo sanctions for breach of certain rules as well as a clear-cut requirement for registration. To further clarify, the proposed bill will enlist the duties and obligations which all tech organisations must follow to facilitate independence for the technology sector and also get rid of impartiality.
Speaking, NITDA Director-General, Mallam Kashifu Inuwa Abdullahi opined that “the amendments are crucial for the agency to keep up with the accelerating changes in the global IT ecosystem. It is imperative if Nigeria is to secure a place in the emerging global digital economy.”
Debatable Parts of the Proposed Bill
Parts of the bill raising dust include Sections 6, 13, and 22.
In Section 6, NITDA will issue new licenses for technology companies wishing to operate in Nigeria’s technology space. This means that even companies who have been long in business will get new licenses from NITDA.
Sub-section 5, grants NITDA the authority to fix license charges and monies for penalties.
An establishment of a National Information Technology Development Fund to be funded through levies, fees, grants-in-aid and gifts, is stated in Section 13.
Under sub-section 2a, tech companies with annual turnover summing ₦100,000,000 are mandated to pay 1% of their profit before tax as levies. All tech companies including startups will also be paying 30% company income tax.
In Section 22, failure to pay levies will attract a 0.5% increase per lapsed day. Also, a fine of ₦3,000,000 for individuals and ₦30,000,000 for cooperate will be issued for breach of NITDA directives.
The Differences and Similarity With the 2007 Act
In the 2007 Act tech companies that were not part of categories listed under the act did not pay levies. It had different categories namely e-commerce companies, foreign digital platforms targeting the Nigerian market, and fintech.
Also unlike Section 22 of the proposed bill, the 2007 Act for fines for the same offence is ₦200,000 and ₦500,000 for corporate bodies.
However, the similarities between both acts apart from fining is imprisonment. Tech company owners who put up a force against certain rules will be jailed.