Perchstone & Graeys Tech Regulatory Report for Q2 2023
The second quarter of 2023 was remarkable due to the change in government in Nigeria at
the national level following the last general elections. In this report, we highlight fintech-
related laws, regulations, frameworks, circulars, draft instruments, etc. which were issued
by regulators in the second quarter of 2023.
Private Blockchain Independent of Public Land Administration
According to Businessday’s publication of June 14, 2021, opportunity in the Nigerian real estate industry is worth an estimated US$56billion. And yet, the potential has barely scratched the surface of possibility. Contemporary real estate deals are limited to the most basic transactions conducted by the brave, at considerable risk. Unreliable record keeping is widespread across the country, and unscrupulous middlemen make it difficult for stakeholders to make informed commercial decisions.
Tech Regulatory report Q4 2023
The year 2023 marked another historic period for Nigeria, serving not only as an election year
but also witnessing a surge in regulatory activities within the fintech sub-sectors. Notable
among these initiatives is the CBN Circular dated June 22, 2023, titled “Guidance Note on
Politically Exposed Persons (PEPs),” which introduces measures to mitigate potential money
laundering. Additionally, the CBN issued a Press Release to Authorized Dealers and the public
in June 2023, announcing operational changes to the Nigerian Foreign Exchange Market.
These changes resulted in the consolidation of all segments in the foreign exchange market in
Nigeria into the Investors’ and Exporters’ Window (I&E Window). Other significant
developments include the enactment of the Nigerian Data Protection Act, 2023, the
formalization of the Copyright Act 2022, and the launch of the Licensing, Approvals, and
Other Requests Portal (LARP) for Micro-Finance Bank Licenses by the CBN.
Resolving Persistent Frictions Between the Music Label Companies and the Artists
The music industry thrives on the creativity and talent of artists who bring melodies, lyrics,
and emotions to life. However, an ongoing issue that persists in this industry involves the
frictions between artists and music label companies. These frictions primarily revolve
around issues of fairness, transparency, and the distribution of power and revenue. In this
article, we will explore some of the key challenges faced by artists and propose potential
solutions to bridge these gaps and foster healthier relationships within the music industry.
Overview of the salient provisions of the nigeria data protection act, 2023
The Nigeria Data Protection Act, 2023 (“NDPA”) was signed into law on June 12, 2023, by
President Bola Ahmed Tinubu. Prior to the enactment of the Act, the Nigeria Data
Protection Regulation of 2019 regulated data protection in Nigeria.
Technological advancements have created an increased need for the security and protection
of personal data. The main objective of the Act is to safeguard the fundamental rights,
freedom and the interest of data subjects as guaranteed under the Constitution of the Federal
Republic of Nigeria, 1999
1
. The Act further establishes the Nigeria Data Protection
Commission
2 with functions geared towards effecting implementation, enforcement and
actualization of the objectives of the Act. This article presents an overview of the salient
provisions of the Act.
Review of CBN operational changes on the foreign exchange market
In a bid to address the extant economic gaps that exist in the Nigerian Foreign Exchange
Market (the “FX Market”), the Central Bank of Nigeria (“CBN”) released a circular
dated June 14, 2023 titled “Operational Changes to the Foreign Exchange Market” (the
“Circular”). This Circular introduces notable changes to the country’s FX Market and its
operations. The purpose of this paper is to highlight the changes and impact of the
introduced changes on the foreign exchange market as well as its interplay with the
Nigerian economy.
Revisiting the cybercrimes (prohibition, prevention, etc.) act 2015
Before the Cybercrimes (Prohibition, Prevention, etc.) Act 2015 (“the Act”) was enacted, Nigerian
law enforcement and prosecutors were hamstrung in prosecuting cybercrimes, due to
inherent limitations in ‘prior era’ legislation like the Economic and Financial Crime Commission
(Establishment) Act 2004. The EFCC Act could not cater for prevention of threats to
communication system and digital crimes. In the wake of increasing digitalization, the need
for responsive legislative initiatives to deter ingenious cybercrimes became painfully evident.
Hence, the Act. This article reviews the Act, and highlights areas of improvements through
legislative amendment.
Legal and commercial implications of the sale of music catalogue: Justin bieber as a case study
On January 24, 2023, Justin Bieber reportedly sold all the rights to his music catalogue;
including his masters, publishing rights and all monies generated from the writer’s share of
his public performance royalties, to Hipgnosis Song Management (“Hipgnosis”). The deal
was valued at a whopping $200,000,000 (Two Hundred Million Dollars). Since his music
career took off in 2010, Justin has had major international hits to his credit; like ‘Baby’, ‘Stay’,
‘Sorry’, among other singles and successful collaborations. These hits have spawned 6 studio
albums and several compilation albums. His $200M deal grants Hipgnosis, all Justin’s rights
to a catalogue containing about 291 songs released before December 31, 2021
The transformative potential of artificial intelligence (AI) in alternative dispute resolution
Alternative Dispute Resolution (ADR) methods, such as mediation and arbitration, have gained
significant traction as efficient and cost-effective alternatives to traditional litigation. Of course,
this is not without its pitfalls, some of which include cost and time. Nevertheless, with the rapid
advancements in technology, particularly in the field of Artificial Intelligence (AI), it has become
important to interrogate the cause and effect of AI in shaping and engaging the ADR framework
for effective resolution of disputes.
Navigating the Intersection of Data Protection and Privacy in the Age of Blockchain Technology
In the rapidly evolving digital landscape, the convergence of data protection and privacy faces heightened complexity, particularly with the rise of groundbreaking technologies such as blockchain. Originally conceived for cryptocurrencies like Bitcoin, blockchain has matured into a disruptive force, prompting organizations to adopt it for improved transparency, security, and efficiency. This article explores the intricate relationship between blockchain technology and data protection, emphasizing the challenges, privacy concerns associated with smart contracts, legal and regulatory compliance issues, and potential strategies to enhance privacy within the blockchain ecosystem.
The review begins with an overview of blockchain technology, emphasizing its decentralized and transparent nature, which, while advantageous, raises concerns about the privacy of sensitive information. The discussion delves into the challenges posed by smart contracts, self-executing codes embedded in blockchain transactions, and their operation on public blockchains. The transparency inherent in these contracts, coupled with pseudonymous identification and potential exposure of sensitive data, highlights the delicate balance needed between transparency and data protection.
A significant legal and regulatory compliance challenge is explored, focusing on the difficulties organizations face in aligning with data protection laws such as GDPR. The decentralized and immutable nature of blockchain poses obstacles in meeting regulatory requirements, especially concerning the “right to be forgotten.” Privacy-enhancing strategies are then introduced as potential solutions, including off-blockchain storage for sensitive data and the implementation of privacy-focused protocols like zero-knowledge proofs and homomorphic encryption.
The path forward involves collaborative efforts between regulatory bodies, industry experts, and blockchain developers to establish tailored frameworks that uphold the unique characteristics of blockchain while safeguarding individual privacy rights. Raising awareness and educating stakeholders on the importance of data protection and privacy in the decentralized landscape is deemed crucial, empowering individuals to understand and assert their rights.
In conclusion, the article underscores the inevitability of blockchain integration into the digital infrastructure and the unparalleled innovation it offers. However, it advocates for a vigilant approach, emphasizing the need to address challenges, employ privacy-enhancing strategies, and foster collaboration to ensure a harmonious coexistence of blockchain and data protection in the digital age.