THE EMERGENCE OF A GLOBAL ECONOMY: THE DATA LOCALISATION PARADOX
By Victoria Oloni
It is pertinent to adopt policies that encourage globalisation and transnational relations in the information age, not policies that restrict global trade. This article examines the concept of Data Localization, the objectives and implications of Data Localization. It examines the current legal framework for Data Localization in Nigeria, showing the long-term challenges it may pose to development. It also provides alternative policy measures that may be adopted in place of strict localisation laws. The article also examines data localisation policies from select countries in the world. This study employs secondary and qualitative research methods to arrive at its findings. From the research conducted, we found that mandatory data localisation creates several challenges, especially for developing economies like Nigeria, which include: negative economic impact, increased organisational cost, data vulnerability, an impediment to global trade and increased difficulties in the financial services sector. It is recommended that in place of data localisation, the Government should explore policy alternatives like conditional (soft) localisation, sectoral localisation or incentivising local storage of Data through tax incentives and improved infrastructure facilities.