E-Business
Spontaneous Deregulation Tests Regulatory Gaps on Digital Platforms

By Austin Okere
There is a perfect storm brewing between Regulators and Technology Platforms. Regulators should ordinarily be one of the most critical enablers of a society.

Austin Okere
They, however, tend to be either a source of support or a headwind against progress. The regulator should not constrict the pursuit of opportunity nor act in a manner to entrench protectionism.
While Nigeria has become one of the world’s fastest-growing technology markets, attracting investments of over $216m in the first quarter of 2021 alone, there is a palpable apprehension among technology start-ups, after a series of regulatory headwinds from different government bodies.
These include the Central bank of Nigeria’s ban on cryptocurrency trading and the Security and Exchanges Commission’s clampdown on technology platforms for purchasing shares in foreign companies outside the Commission’s regulatory purview and registration.
In August 2021, the Central Bank of Nigeria froze the bank accounts of six fintech platforms for 180 days, saying it was investigating “illegal foreign exchange trading”.
“The party’s over: China clamps down on its tech billionaires” was the screaming headline in the Guardian of August 21, 2021. In the article, Vincent Ni reported that Tencent had announced fresh restrictions on the number of time children can spend playing its online games shortly after state media labelled gaming “spiritual opium”.
The major news last October was Alibaba’s fintech spinoff Ant Group suspending its IPO shortly before it went public after high-flying founder Jack Ma expressed dissent against regulators.
In July, the country’s largest ride-hailing company, Didi, became a regulatory target less than 48 hours after it floated in New York. It was ordered to withdraw from app stores and banned from accepting new users pending a review of security risks and data management.
The news wiped $22bn from its market value. Individuals have also been affected.
Last July, Colin Huang, founder of e-commerce platform Pinduoduo, stepped down as chief executive. He later relinquished his chairmanship. In May, Zhang Yiming, boss of TikTok’s parent company, Bytedance, announced his resignation to focus on “reading and daydreaming”.
Further afield in America, the story is not much different. “The Trump-Twitter fight ropes in the rest of Silicon Valley” was the headline on Politico.com on Sunday, May 30, 2020. President Donald Trump tweeted about mail-in voting, alleging without evidence that the effort would lead to voter fraud.
For the first time, Twitter marked the tweet with a small notice that read “Get the facts about mail-in ballots,” which linked to facts-based reporting on the subject. Twitter’s fact-check led Trump to issue an executive order targeting social media companies.
In early June 2021, Nigerian President Muhammadu Buhari announced the indefinite suspension of Twitter after the platform deleted one of his tweets and temporarily suspended his account.
The relationship between platforms and regulation has been thorny right from the start and can at best, be described as a keg of gunpowder waiting to be triggered. Has the time come for the trigger to be pulled?
I wrote this article five years ago in June 2016, and it still captures the essence of this fractious relationship.
I facilitated a seminar for the Lagos Judiciary at the Lagos Business School in May 2016, with the theme Digital Economy and Legal Regulation. The aim of the program was to share insights on the emerging Digital Economy with their Lordships and draw attention to the imperative for regulatory evolution in the face of the pervasiveness of Online Platforms of the kind operated by technology giants such as Facebook, Google, Uber and Airbnb.
There is hardly an area of economic and social interaction these days that is left untouched by these Platforms in some shape or form.
Regulatory Gaps
To fill the regulatory gaps in the digital economy, these behemoths have resorted to what could be referred to as spontaneous deregulation. I first encountered this term in an article by Benjamin Edelman and Damien Geradin and has arisen as a result of digital disrupters ignoring laws and regulations that appear to preclude their business model, which is typically based on providing platforms for crowdsourcing and giving rise to the sharing economy.
Believing in the efficacy of their utility model and its appeal to pent-up global demand, these disrupters seem to see many rules and regulations as belonging to the past and impractical for today’s innovative clime. They therefore simply ignore them, opting for their own version of self-regulation, usually based on a mutual rating system between service providers and consumers.
It is this skirting of existing regulation that is referred to as spontaneous private deregulation.
These disrupters make the rules for themselves as they go along, because in fairness to them, as their platforms reshape markets, the scope of activity subject to regulation tends to decrease, and various forms of protection disappear.
These companies operate in interstitial areas of the law because they present new and fundamentally different issues that were not foreseen when the governing statutes and regulations were enacted.
The major areas in which these digital czars have riled the establishment are in transportation embodied by UBER, hospitality embodied by AirBnB and FINTECHs, with their foray into cryptocurrencies, particularly Bitcoin and Ethereum.
The need for ‘platform fairness’
Axelle Lemaire, French secretary of state in charge of all things digital, insists that France is open to platform operators, but consumers have to be protected. She is sponsoring a law to be passed by the French Parliament which will create the principle of ‘Platform Fairness’.
Karnataka state in India, where Uber piloted its India service two years ago has directed taxi aggregators such as Uber to stop operations in the state until they secure a licence from the government, triggering sharp reactions from the corporate world.
Getting a licence would mean no more surge pricing, complying with the maximum fares fixed by the government periodically and registering with local transport authorities.
The question is why has it taken the Karnataka government such a long time to wake up to regulatory gaps in her transport sector? And how many other cities are in this quagmire?
The U.S Supreme Court recently ended a decade-long battle over Google’s massive book-scanning project, declining to take up an appeal by authors who claimed the company violated copyright law ‘’on an epic scale’’.
The justices denied certiorari in Authors Guild v. Google, 15-849, leaving in place a ruling last year by the U.S. Court of Appeals for the Second Circuit that said Google’s project was permissible. The appeals court decision invoked the ‘’Fair Use’’ doctrine, which permits some ‘’socially beneficial’’ use of published works such as news reporting or research, that would otherwise constitute copyright infringement.
Airbnb has had its fair share of issues with one of her largest markets, New York. A major concern is a legal regime within which Airbnb operates; one that is marked by poorly drafted laws that fail to account for challenges presented by the sharing economy.
As explained by Airbnb cofounder Brian Chesky, “There were laws created for businesses, and there were laws for people. What the sharing economy did was create a third category: people as businesses,” to which the application of existing laws is often unclear.
These new business models raise complex questions that have not yet been addressed by either legislatures or courts.
Because the threat of enforcement actions can have a chilling effect on start-ups and their users, state and local government officials should consider how their actions may affect burgeoning businesses. Officials should encourage the sharing economy’s growth through collaborative efforts rather than seek to protect incumbent businesses.
Until more people think they can successfully start businesses and prosper, we will not have enough jobs in the economy
Regulation seems too slow in catching up
The slow pace of regulation evolution seems to strongly suggest that the legal profession itself is ripe for a technology revolution that will optimise the largely manual and laborious process of enacting laws and regulation in the face of the aggressive pace of digital innovation.
I recall the indignation of their Lordships when I cautioned that the learned profession could be more vulnerable than they think when it comes to disruption. Emerging technologies like cognitive computing and other forms of machine learning can help narrow the gap between regulation and innovation.
Green shoots of technology in Law and Regulation
My take expressed to their Lordships after the seminar was that the digital revolution is like a train whose drivers are the entrepreneur disrupters. The passengers are the global customers with pent-up demand for the value and convenience that Platforms provide.
Staying on the right side of the law in a digital world
Naysayers to this phenomenon can stand in front of the train and be crushed, stay on the platform and be left behind, or come on board for a ride into progressive partnerships. Regulators still have much to learn about how to deal with platforms. They have no choice but to get more involved and get the needed expertise. But will they? The jury is still out.
Austin Okere is the Founder of CWG Plc, & Entrepreneur in Residence at CBS, New York. Austin also serves on the Advisory Board of the Global Business School Network.
E-Business
NITDA Introduces Cloud Certification Boost Data Localisation Compliance

National Information Technology Development Agency (NITDA) has introduced so-called Nigeria’s Certified Cloud Register, regulatory framework developed under the agency’s National Sovereign Cloud Initiative to determine which cloud providers are authorized to handle sensitive data, such as banking records.

In effect, from October, NITDA requires banks, fintech companies and other regulated organisations to source cloud infrastructure providers from a national register of certified firms approved to host sensitive financial and government data.
The Certified Cloud Register, is expected to strengthen data sovereignty, improve regulatory oversight and support the implementation of the Central Bank of Nigeria’s (CBN) data localisation policy, which takes effect on January 1, 2027.
Under the framework, banks, fintechs, government institutions and other regulated entities will be able to verify whether cloud service providers, data centre operators, managed service providers and Artificial Intelligence (AI) infrastructure companies have met NITDA’s certification requirements before entrusting them with critical digital workloads.
The initiative is expected to provide regulated institutions with a standardised process for selecting cloud infrastructure providers that satisfy Nigeria’s technical, security and regulatory requirements.
According to NITDA, the framework establishes “a common national standard, an independent assessment process and a public register of approved providers that banks, fintechs and government institutions can rely on when selecting cloud infrastructure partners.”
The register is expected to become a key compliance tool ahead of the CBN’s directive, which requires all payment transaction data generated within Nigeria to be stored and processed locally, effective from January 1, 2027.
The policy applies to deposit money banks, microfinance banks, mobile money operators, payment service providers, switching companies and other financial institutions.
The certification regime is also expected to reshape Nigeria’s cloud computing ecosystem, making regulatory approval a major requirement for cloud providers seeking to handle sensitive data for regulated industries.
Figures cited by NITDA showed that Nigeria’s 10 largest banks spent about N177.91 billion on information technology in the first quarter of 2026, representing a 31 per cent increase over the corresponding period last year.
A sizeable portion of the investment currently supports cloud infrastructure hosted outside Nigeria, a trend the new certification framework is expected to address by encouraging greater utilisation of compliant local infrastructure.
NITDA said the certification programme will apply the same technical and regulatory standards to indigenous cloud providers and international hyperscale operators, creating a level playing field for all companies seeking to provide cloud services to regulated sectors.
The agency also disclosed that more than 85 per cent of Nigerian businesses currently rely on cloud services, with the majority using infrastructure hosted outside the country.
It said the new framework is aimed at improving confidence in Nigeria’s digital infrastructure while promoting local capacity and enhancing oversight of critical national data.
Speaking on the objective of the initiative, Kashifu Inuwa Abdullahi, director-general of NITDA, said the programme is designed to strengthen Nigeria’s position in the global digital economy rather than exclude foreign technology companies.
According to him, the initiative is intended “to redefine the terms under which Nigeria participates in the global digital economy rather than isolate the country from international technology providers.”
The Certified Cloud Register forms part of broader efforts by the Federal Government to deepen digital trust, strengthen cybersecurity and ensure that critical financial and public sector data are managed in line with Nigeria’s evolving data governance and sovereignty objectives.
E-Business
Firm Advocates Healthy IT Habits to Strengthen Cyber Resilience

At the recent Cyber Security Weekend 2026 conference, Kaspersky shared the findings from its survey titled “Cybersecurity in the workplace: Employee knowledge and behaviour” which was conducted among employees from the Middle East, Turkiye and Africa (META) region.

The study highlights that everyday IT habits, including decluttering computers and reducing digital fatigue, can have a direct and often underestimated impact on an organisation’s cyber resilience.
The Kaspersky survey points to a growing challenge of digital fatigue in the workplace. 13.5% of employees surveyed in the META region confirmed that they made IT-related mistakes due to a lack of cybersecurity knowledge – a figure that shows the critical importance of continuous cybersecurity training and awareness programmes.
Among other reasons behind IT mistakes, respondents cited being in a hurry (30%), oversight (14%), being tired or stressed (12.9%) and having too many notifications (10%). The constant barrage of alerts, messages, and on-screen clutter is becoming an acute problem that can lead to costly IT errors, overlooked social engineering attacks, and even to cyber breaches.
The survey also examined employees’ digital workspace habits. An overwhelming 44.5% of respondents in the META region reported having between 10 and 20 icons on their desktop, while 30% admitted to having even more – with half to a full screen covered in them.
Meanwhile, 33% of respondents also keep more than 10 tabs open in their browser at any given time. Excessive icons and open tabs do more than distract attention and fuel procrastination – they can slow device performance and, in the case of unused applications, quietly collect data.
Interestingly, most employees regularly disinfect their keyboards and phone surfaces (21.5% have adopted this habit since the COVID pandemic). However, digital cleanliness has not kept pace: 55% of respondents remove needless files once a month or more often; the rest perform digital clean-ups far less frequently – once a quarter, or even once a year.
Managing digital noise is key to staying alert: only essential notifications should remain active, especially during periods of deep focus on critical project deliverables. Regular breaks are just as vital for maintaining both well-being and cyber vigilance.
According to the survey, 78% of respondents spend their work breaks eating or drinking, while 58% chat with friends and colleagues. However, stretching and physical exercise is a more effective way to relieve stress and recharge focus – a habit adopted by only 14% of employees.
“It is important to recognise that digital fatigue is a real and growing stress factor: the constant stream of notifications, cluttered screens, and information overload gradually erode focus and make employees far more susceptible to mistakes and social engineering attacks. Simplifying your digital environment is not just a productivity tip, it is a cybersecurity measure”, says Brandon Muller, senior security consultant for the META region at Kaspersky.
E-Business
Extremist Groups Are Using Social Media to Recruit African Youth, New Report Warns

Pan-African digital rights organisation Paradigm Initiative (PIN) has warned that violent extremist groups are increasingly exploiting digital platforms to recruit, radicalise and manipulate young people across the Sahel region.

The organisation raised the concern in a new policy brief titled “Digital Frontlines: Countering Online Radicalisation and Violent Extremist Narratives in the Sahel.”
According to the publication, extremist groups are shifting from traditional recruitment methods to digital platforms, including social media, encrypted messaging applications, short-form video platforms and online financial incentives, to target vulnerable populations.
PIN noted that unemployed youths and people facing insecurity and limited economic opportunities are particularly susceptible to online recruitment campaigns.
The organisation said that although governments have intensified efforts to combat violent extremism, responses to the digital dimension of the threat have failed to keep pace with rapidly evolving online tactics.
It argued that addressing online radicalisation requires more than surveillance and restrictive measures, recommending investments in digital literacy, stronger community resilience, improved early-warning systems and credible counter-narratives.
PIN also urged governments to work closely with technology companies and civil society organisations to disrupt extremist recruitment while protecting citizens’ digital rights.
The report further highlighted the growing convergence between organised crime and violent extremist groups, noting that online propaganda increasingly promises financial rewards, belonging and purpose to vulnerable young people.
According to the organisation, this trend underscores the need for policymakers to prioritise prevention alongside conventional security responses.
Speaking on the findings, Moussa Waly SENE, Programmes Officer for Francophone Africa at Paradigm Initiative, described the digital space as a new frontline in the fight against violent extremism.
“As more young Africans come online, stakeholders must ensure that digital platforms remain spaces for opportunity, innovation and civic participation, not recruitment grounds for violent extremist groups. Protecting digital rights and protecting vulnerable communities should be mutually reinforcing objectives,” he said.
Among its recommendations, the policy brief called for stronger regional cooperation to tackle cross-border online extremist networks, rights-respecting content moderation and greater accountability by digital platforms.
It also advocated expanded digital literacy programmes to strengthen resilience against online manipulation and community-led initiatives that empower young people to identify and reject extremist narratives.
The organisation further urged policymakers to develop security measures that balance national security objectives with the protection of privacy, freedom of expression and access to information.
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