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The Law and the Use of Computers in Nigeria (1)

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People are currently serving jail terms in the UK and the US because they infiltrated other people’s computers that they weren’t told to. Similarly in Nigeria, some people’s liberty is currently being restricted because they use the computer to make   phony deals online. In Microsoft vs.  Alexander Pononsov, a  Russian court passed a  verdict  of  guilty  on a rural  school teacher  that  unknowingly  used  pirated Microsoft operating  systems.   The common denominator in the above scenarios is that the law took over, reduced all the computing technicalities into the desiccated vernacular of its trade and made prosecutions. But how effective and comprehensive are computers laws in Nigeria and  the  developing  world  at large as   compared to the advance countries. Remember we are all players in the same cyberspace, and hence faces the same threats.
The computer law in Nigeria is  way  underdeveloped and  hence  do not  meet  with the  contemporary  requirements of  the modern  information  and  technology age. We  lack  the  technical  resources,  expertise as  well as the  legal  framework to  tackle  cyber crimes  and  computer  crimes at  large. The  business environment  in  any country  is  greatly  strengthened by  the  security environment: therefore, serious  Techno-legal  ICT  training is required  for  judges, lawyers, law students, law  professors and corporate  executives in  Nigeria. A wise litigator now  in  Nigeria will be  looking  forth  to  writing  his MCP- Microsoft  Certified Professional which will  be  a stepping  stone  to  acquiring Techno-Legal  trainings. An MCP  attached  to  his   name  a  lone is an  intimidation  to  other litigator.
Now that the infrastructures in any country can no longer function without computers and networks, a well regulated computing industry instills a lot of confidence in computer related transactions and help guard against IT risk complexities. When the internet was  first introduced , it was  like a state of nature where internet browsers have unlimited freedom but gradually laws came up that limited what people can and cannot do on the computer. I often participate in a hackers forum on a website floated from Germany, today legislative laws  came up in Germany that  prohibited that site from being floated from Germany.
Computer law is mostly an eclectic amalgamation of concepts from existing law, which are applied to the relatively new technologies of computer hardware and software, e-mail, and the Internet. (Google tech Dictionary). However, there are several reasons why it is convenient to have a separate classification for computer law:
1. Solving legal problems that arose from the use of computers often requires some legal principles that are rarely encountered in the practice of law. For example:
A. Disputes about e-mail and web pages on the Internet extend across state lines, and may even extend across national borders. For example, there are technical issues in personal jurisdiction and which state’s law should be applied to the resolution of the dispute. To solve these legal problems, one must understand principles of an abstruse area of law, called Conflicts of Law. Instead of relatively firm rules with predictable results, as in most other areas of law, conflicts analysis can be characterized as choosing from a menu of possibilities.
B. Information stored on computers (e.g., software, data, trade secrets, confidential personal information) is generally much more valuable than the computer hardware. In order to protect this information, many of the concepts in the practice of computer law involve the specialized area of Intellectual Property Law, which includes copyrights, trademarks, and patents. Take the US for instance, in order to practice before the U.S. Patent Office; an attorney must have at least a bachelor’s degree in some area of science or engineering, a requirement that excludes nearly all attorneys.

2. Traditional concepts in law are being expanded by events in the area of computer law. For example:
A. Computer software is legally considered a "good". Unlike other goods, the "purchaser" only owns the floppy diskette or compact disk that contains the software, plus a license to use the software. The Uniform Commercial Code was amended by including Article 2B in the US patent  law to cover licensing of computer software.
B. Computer databases that contain erroneous information (e.g., false credit reports) can be harmful to people, which may give rise to a new class of torts, called infotorts
C. Hackers who use a modem to enter a computer without authorization and either (1) use its services or (2) alter records are committing a crime similar to burglary, but the traditional notion of burglary requires the criminal personally to enter the victim’s premises, which is not satisfied in the case of entry via data to/from a modem. Therefore, new laws were enacted to define computer crimes (Personally, I think it would have been preferable to change the definitions in existing concepts, instead of create new concepts, but no one would accuse the legal profession of honoring simplicity and economy.)
D. Authentication of evidence contained in files on a computer presents some new problems, because of the ease with which data in the file can be altered, and also because it is easy to alter the operating system’s date and time stamp in the directory.
E. Searches of computer databases provide access to information that was difficult to locate in the pre-computer age, which makes computer databases a major new threat to privacy of individuals.
The Internet has been revolutionary in giving anyone with a website the equivalent of a printing press or television transmitter: now anyone can broadcast their information or opinion to the whole world, without first going through formal review by a publisher. Many governments have reacted to the Internet with new censorship of both websites and readers’ access to the Internet. Furthermore, there has been widespread copyright infringement by people who post material at their website that was copied from other websites, or copied from books, without written permission of the copyright owner.

Law reacts slowly to new technology, With the exception of the telephone and typewriter, the technological revolution of the past century has left the law untouched. Law has dealt at arm’s length with technology, making new rules to cover air travel, genetic engineering, and the like, while the lawyers who do the work carry on with paper and pencil – until the advent of the computer.
The case in the developing world  need a deep focus, perhaps I might be wrong , maybe  a  deeper focus. Judging computer related crimes need  players with  adequate computer knowledge on  the technical  side. In Nigeria, law enforcement agent have little or no computer education  to combat  rising computer related crimes. We need a separate court for trials regarding computer related crimes and judges that are conversant with  bits  and  bytes, like  the juvenile court system in which lots  of  proceedings in the normal court  system doesn’t  apply  there. Surprisingly, the issue of laws  regarding computer crimes have not had adequate attention even in developed world. This is as a result  of  different interpretation of what  constitutes  a  computer  device and computer crimes at  large. For instance the newly elected state law in West Virginia  regarding computer crimes  states that :
Any person who, knowingly and willfully, directly or indirectly accesses or causes to be accessed any computer, computer services r computer network for the purpose of (1) executing any scheme or artifice o defraud or (2) obtaining money, property or services by means of fraudulent pretenses, representations or promises shall be guilty of a felony, and upon conviction thereof, shall be fined not more than ten thousand dollars or imprisoned in the penitentiary for not more than ten years or both.
In the Alabama Computer Crime Act, the same issue has a different punishment and interpretation. Also, issues’ regarding definitions as regards to what is a data, computer network, computer programs etc have been interpreted in different ways under different State Laws in the US. This variance stress from Texas Statutes and Codes Annotated,, the State of Wisconsin Statutes, Washington Criminal Code in the revised code of Washington Annotated, and the Arizona Revised Statutes Annotated under Organized Crime and Fraud and so on.
Computer users and law enforcement agents in Nigeria need serious awareness by concerned agencies as regards to what constitute a computer crime locally and  in the cyberworld. Initially,  I  stressed on  the technical abilities  of all players involved in pinning  a computer crime, this  is  because  technical issues  are paramount  in both the investigation and prosecution  phase of  the crime . I was in a  cybercafé in Ikeja, then EFCC officials  stormed into  the café and instructed  every body  to pause, they  then  move  round to check  what  people are doing. I laughed because this is highly  unskillful and untechnical way of tackling a computer incident on the side of the law enforcement agents. People like us whether you shutdown your PC , we  can still backtrack what you were  doing . If you like unplug the power cord so that the system suddenly dies off I can still trace back your  activities  on the system. In fact format your hard drive I can still retrieve data from it.


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NIA Questions Legality of Reps’ Financial Probe

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The Nigerian Insurers Association has urged the House Committee on Capital Market and Institutions to respect the constitutional separation of powers as it carries out a probe on over 20 insurance firms.

In a statement on Tuesday night, the Director General/Chief Executive Officer of NIA, Mrs Bola Odukale, said the decision of NIA and the affected firms to approach the court was to seek clarity on the constitutional limits of the House Committee’s probe.

It would be recalled that the House of Representatives on Monday is investigating no fewer than 25 insurance companies operating in the country for various financial infractions spanning financial reporting, claims settlement, premium remittance, and issuance of policies.

The Chairman, House Sub-Committee on Capital Market and Institutions, Kwamoti Laori, during a meeting with the management of the insurance companies at the National Assembly Complex in Abuja, said the meeting was convened following the receipt of a petition on infractions by the insurance companies.

In the statement, Odukale said, “The Association wishes to state unequivocally that all actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators, such as the National Insurance Commission, Securities and Exchange Commission, Nigerian Exchange, Financial Reporting Council, Nigeria Data Protection Commission, and the National Information Technology Development Agency.

“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.”

Odukale maintained that the NIA was committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution.

“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” Odukale concluded.

17 of the companies that went to court were represented by their lawyer, Mr Abimbola Kayode, at the meeting with the committee.


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Horn of Africa Leaders Seek Enhanced Digital Integration for Increased Regional Growth

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Finance ministers and development partners from the Horn of Africa have called for enhanced digital integration to boost trade, drive economic growth and promote regional stability during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI).

Held in Nairobi, on July 14, the meeting was co-chaired by the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo and Somalia’s Minister of Finance, Bihi Iman Egeh. Discussions underscored the critical role of digital integration in reducing trade barriers, boosting government service delivery and creating employment — particularly for the region’s youth.

“Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can not only improve inclusion but also leapfrog outdated development models,” said Nwabufo.

She called for digital integration a “central enabler” in each of the Horn of Africa Initiative’s pillars – trade, infrastructure, resilience, and human capital,

Learning through experience

Drawing from global and regional success stories, speakers highlighted the transformative potential of technology-led development. The ministers pointed to the Philippines as a strong example, where ICT has generated millions of jobs in business process outsourcing. Similarly, Kenya’s fintech innovation—especially the success of M-PESA—was cited as a model for scaling digital financial services across the region.

Participants urged governments to proactively foster digital ecosystems by capitalizing on the demographic dividend, identifying infrastructure upgrades, tighter regulatory reforms, and digital skills trainings as priorities to enable broader participation in the digital economy.

Minister Egeh reiterated the need for more coordinated regional efforts to create the enabling environment required for accelerated digital integration and expansion. He referenced the HoAI Digital Policy Matrix, adopted in 2023 which provides a blueprint on how to address key obstacles to achieving effective digital integration across the region.

Barack Makokha, Kenya’s Cabinet Secretary for National Treasury, underscored the importance of regionally-aligned public private partnerships and advocated for blended financing to reduce investment risk and expand digital access in underserved areas.

World Bank Vice President for Eastern and Southern Africa, Ndiame Diop, called for a comprehensive multi-pronged approach, combining cross-border coordination, large-scale financing, robust policy support, and digital infrastructure investments. He pointed out that such measures could transform digital integration into, “a powerful engine of economic transformation” for the Horn of Africa—ensuring no one is left behind in the digital era.

The meeting concluded with a shared recognition that sustained political will and the determination to implement a multifaceted approach are essential to unlocking the region’s economic potential and driving long-term growth.

The event also welcomed observers from the East African Community, Agence française de développement, and Shelter Afrique, reflecting strong regional and international backing for the HoAI in the development community.


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CSCS Inaugurates Custodian Portal to Enhance Digital Access, Operational Efficiency

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Central Securities Clearing System Plc (CSCS), Nigeria’s capital market infrastructure provider, has launched its Custodian Portal, a user-centric digital solution designed to optimise custodian operations through intuitive, secure and efficient features.

Haruna Jalo-Waziri, Chief Executive Officer (CEO), CSCS, announced this in a statement on Monday.

The CSCS is a Public Limited Company with a diversified shareholder base, which serves as the Central Securities Depository for the Nigerian Capital Market.

It serves as the Central Depository for Equities, Commercial Papers, Corporate Bonds, Sub-National Bonds, certain Sovereign Bonds like the FGN Sukuk and the FGN Savings Bond, Equity-traded Funds, Real Estate Investment Trusts, Mutual funds and Commodities.

Jalo-Waziri said that the custodian portal offered a streamlined experience for market participants with powerful tools that facilitate comprehensive portfolio and trade management, document tracking, share transfer operations, client symbol search, and real-time access to vital data.

He explained that the portal, designed to operate through a flexible subscription-based model, empowered users to manage their records effortlessly and securely through convenient payment channels such as GTPay and Paystack.

According to him, “Digital transformation remains at the core of our strategy to enhance the efficiency, transparency and accessibility of Nigeria’s capital market services.

“The custodian portal is a significant leap in that direction, offering custodians a centralised platform to manage critical processes in real-time.

“We are excited about the value this innovation brings to our stakeholders, and we will continue to evolve the platform in line with users’ needs and industry trends.”

The CEO also explained that the portal was designed with user experience in mind with feature tools like portfolio viewing and downloads in PDF or Excel format.

He further said that it also featured tracking of stock movements across date ranges, inbox messaging and request tracking, as well as robust user management capabilities including role assignment and status tracking.

Similarly, the Divisional Head, Business Technology and Digital Innovation, CSCS Plc, Tobe Nnadozie, said that the portal aligned with CSCS’s drive to automate the market.

“In addition to the normal features, the platform is a part of an omnichannel platform for custodians, and includes API services.

“It also connects to the market-wide workflow, which CSCS has built to ensure secured communication and approvals across all major stakeholders in the market.

“The platform is well secured with best-of-breed cybersecurity solutions and our SOC,” he said.

The Custodian Portal reinforces CSCS’s commitment to leveraging technology to streamline back-office functions and support a more agile, data-driven capital market ecosystem.

All custodians in the Nigerian capital market have now been successfully on-boarded on the Custodian Portal, marking a significant milestone in CSCS’s ongoing drive to enhance collaboration, standardise operational processes, and promote digital adoption across the market.


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