Nigeria’s telecom operators has warned lawmakers, declaring the country’s ambitious $1 trillion digital economy blueprint a “house built on a faulty foundation” unless urgent fixes are made to a sweeping new bill that risks regulatory chaos and investor exodus.
The Association of Licensed Telecom Operators of Nigeria (ALTON), representing carriers including MTN Nigeria and Airtel Africa Ltd., told BusinessDay in an exclusive interview, said the National Digital Economy and E-Governance Bill, 2025, contains dangerous overlaps between the National Information Technology Development Agency (NITDA) and the Nigerian Communications Commission (NCC).
Without clear demarcation, the group said, the legislation will undermine rather than accelerate the government’s digital transformation agenda.
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“What gives investors confidence is when regulatory functions are properly defined and clearly separated. This bill, in its current form, creates duplication, overrides existing laws, and threatens the very growth it seeks to enable,” Gbenga Adebayo, ALTON chairman said during the interview.
The bill, now in its final legislative stage and expected to reach President Bola Tinubu’s desk by week’s end, aims to consolidate Nigeria’s fragmented digital governance under NITDA, granting it sweeping powers to regulate everything from artificial intelligence and cloud computing to e-signatures and public-sector ICT procurement.
Section 62 explicitly states that the act “shall prevail” over conflicting provisions in other laws, a clause critics say elevates NITDA into a de facto super-regulator.
But ALTON argues this approach ignores the NCC’s statutory mandate over telecommunications infrastructure, spectrum, and digital services. The overlap, Adebayo warned, will lead to bureaucratic gridlock, conflicting directives, and increased compliance costs—burdens ultimately passed to consumers. “We are not opposed to the vision. We commend the sponsors for seeking to modernize Nigeria’s digital ecosystem. But the bill must complement, not override, sectoral laws,” Adebayo stressed.
The operators’ concerns were amplified by high-profile industry voices.
Basil Udotai, former secretary to the Office of the National Security Adviser and founder of Creative Africa, took to LinkedIn to demand the bill’s immediate withdrawal and restructuring. Labeling its central ambition “fatally undermined. A $1 trillion digital economy cannot be built on fragmented regulatory architecture. This bill avoids the hard work of structural reform and is doomed to inefficiency,” Udotai wrote.
Deolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS), echoed the critique, warning that regulatory inconsistencies will put pressure on operators and, ultimately, on subscribers through higher costs and poorer service.
Recall ALTON told a joint National Assembly committee on Monday that the bill vests NITDA with broad authority over artificial intelligence without distinguishing between policy guidance, which should fall under NITDA, and technical regulation, which belongs to the NCC.
ALTON pointed to the UK, EU, and India as models where dual structures balance innovation and accountability. New certification and liability rules for trust service providers risk imposing duplicate compliance on telecom firms already licensed and monitored by the NCC.
According to the organization, Section 82 allows ministerial directives that could erode regulatory independence, clashing with global best practices. Most critically, the bill lacks a formal National Digital Cooperation and Interoperability Framework to align NITDA, NCC, the Nigeria Data Protection Commission, and the Office of the National Security Adviser.
Adebayo urged lawmakers to embed such a framework directly into the legislation to prevent policy fragmentation.Minister of Communications, Innovation and Digital Economy Bosun Tijani remained upbeat at the hearing, saying he looked forward to celebrating this bill once signed.
“It is a testament to the leadership and shared commitment of everyone involved in shaping Nigeria’s digital future,” he said.
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Yet behind the optimism, fault lines are deepening. Nigeria’s digital sector is overseen by at least nine agencies, a sprawl one anonymous industry executive called dysfunctional.
Proponents of the bill argue consolidation under NITDA is long overdue in a converged digital age.Critics counter that centralization without clarity breeds confusion.
“Institutional roles must be crystal clear to build investor confidence,” Adebayo said, noting that ALTON members have invested over $70 billion in Nigeria’s networks since 2001.
Lawmakers signaled openness to amendments. Committee members said revisions could clarify inter-agency roles and safeguard NCC autonomy in core telecom functions. But with the bill fast-tracked for presidential assent, time is short.
As Nigeria races to catch up with global digital leaders, where Kenya’s M-Pesa and India’s UPI have transformed economies, stakeholders warn that getting the regulatory foundation wrong could stall progress for years.
“Fix the foundation now or watch the trillion-dollar dream collapse under its own contradictions, Udotai wrote.
