The National Information Technology Development Agency, NITDA, has reportedly leaked its proposed bill that got the entire Nigeria tech community displeased with the agency’s terms. Several reactions have continued to push support for amending the NITDA’s bill that appears to be unfavourable to the Nigerian technology sector.
The Nigerian government’s regulatory practice has an all-time inhumane response focusing on digital media which could either be via radio or the internet. While NITDA’s established bill is expected to drain the national digital economy whereby the likes of digital MSMEs and content creators productivity will gravely regress.
NITDA’s proposed bill requires tech companies based in Nigeria to duly obtain a license ordained by the agency as well as sorting its pre-tax profit levy. The tech agency’s proposed bill also warned defaulters of its regulations are liable to experience the consequential outcome.
On the other hand, neither big tech companies, start-ups nor employees are preferential to NITDA’s proposed policy which is consequential to incarceration. With such outraging demand, the Nigerian licensing agency remains vague about providing in-depth facts about its Licence which currently awaits amendment.
Still, NITDA proposes to issue an unprecedented format of licensing which could either be categorized as a “Platform Provider License, Product License, or a Service Provider License.” Remember the NITDA is yet to clarify the concept of their proposed policy that is expected to generate a lot of revenue, Techbooky writes.
The reaction of several services providers and other technology companies in the Nigerian tech community has instigated the support for an amended policy. These Nigerian-based tech companies have also queried NITDA about the criteria for eligibility to access its license service.
If you can see through the bigger picture, you would comprehend the fact that NITDA needs the funds generated from its licensing business to fund its agency, Techbooky reports. Remember, a typical Nigerian government-ruled agency has reportedly failed with finance management overtime.
Tech companies are obliged to remit 1% of their profits — a levy that is quite different from its tax policy. For context, start-up companies that record up to a hundred million Naira as annual turnover are eligible for NITDA’s 1% levy, per the provision of the proposed Act.
The penalty for contradicting NITDA’s policy demands two or three years of incarceration service or sorting the fine that is worth N30 million — for corporate defaulters. While individuals will be fined up to N3 million and incarcerated for a year.
In line with NITDA’s inhumane regulations, several tech companies have tagged the policy as a wicked deranged scheme to drain the Nigerian digital economy that is currently in its bloom season. Still, the current presidential administration of Nigeria is yet to assign a tangible bill to promote growth in each economical sector.
NITDA’s terms of licensing are purportedly wicked — with a regressive outcome
The licensing agency will yield more profit while its subjects will continue to decline with economic growth. The National Information Technology Development Agency will be gravely disappointed when they realize 80 percent of tech companies operating in Nigeria are incorporated abroad.