Digital Trade Protectionism In Nigeria Under The Nigerian Data Protection Act 2023: Lessons From European Union
Olumuyiwa Bankole, B.A (ed) English Language, Ekiti State University, Ado-Ekiti, Nigeria
ABSTRACT
Digital trade governance in Nigeria is still novel and significantly leverages on data collections, analyses and processes into policy decisions. Nigeria historically migrated into data governance in 2023 upon enactment of the Data Protection Act, aligning domestic data regulation with the global standards. However, the strict provisions of data localization and sector- specific restriction of cross-border data transfers have enabled de facto digital trade protectionism hobbling Nigeria’s commitments to the regional digital trade captured under the AfCFTA Digital Trade Protocol. This paper critically analyses ways the Data Protection Act supports protectionism, evaluates its impact on digital trade, and glean lessons from the European Union’s GDPR towards enhancing digital market integration and liberalization. The paper reveals that the Nigeria Data Protection Act 2023 invents digital trade protectionism in the pattern of sector-specific data localization, and restrictive data transfer, undermining digital trade liberalization and limiting the expansion of Nigeria’s digital economy which should naturally thrive on multilateralism or trade freedom. The paper therefore proposes an EU Model of harmonizing its interoperability instruments—adequacy decisions, standards contractual clauses, and risk- layered data localization--with the NDPA 2023 to achieve its AfCFTA obligations and unwind its digital trade for global competition.
Keywords: Digital Trade, Protectionism, Data Protection Act and EU.
