Abstract
Data localization is a growing trend around the world, as governments seek to protect personal data and national sovereignty in the digital age. However, data localization measures can also hinder cross-border trade and economic growth. Nigeria is facing this challenge as it seeks to promote its digital economy. This paper examines the impact of data localization on international trade obligations in the context of Nigeria’s digital economy. The paper finds that Nigeria’s data localization measures may conflict with its obligations under the World Trade Organization’s General Agreement on Trade in Services (GATS) and the African Continental Free Trade Area (AfCFTA). These agreements prohibit measures that restrict the free flow of data across borders. The paper also finds that data localization can increase operational costs for businesses and stifle innovation. The paper concludes that Nigeria must find a balance between data sovereignty and trade facilitation to ensure the full benefits of the digital economy are realized. The paper recommends that Nigeria adopt a data-driven approach to policymaking, conduct thorough impact assessments, and engage in active dialogue with stakeholders. The paper also recommends that Nigeria strengthen its cybersecurity infrastructure and promote digital literacy among its citizens. By implementing these recommendations, Nigeria can create a data localization framework that is balanced, transparent, and effective. This framework will help to protect personal data and national sovereignty while also facilitating trade and economic growth in the digital economy.
Keywords: Data Localisation, Digital Economy, Nigeria, Trade facilitation