ARTICLE
21 February 2025

TEMS Sector 2024 Round-up And 2025 Forecast

The Technology, Entertainment, Media, and Sports (TEMS) sector in 2024 stood at the crossroad of innovation, regulation, and industry evolution
Worldwide Technology

Introduction

The Technology, Entertainment, Media, and Sports (TEMS) sector in 2024 stood at the crossroad of innovation, regulation, and industry evolution. Across the globe and within Nigeria, significant developments defined the year, including the adoption of landmark international treaties, transformative court rulings, and the strategic restructuring of key institutions. Regulatory bodies and corporate players alike embraced the challenge of navigating complex landscapes and addressing issues such as data protection, intellectual property, competition, and governance. From the Supreme Court of Nigeria's decision to reshape the gaming industry in Nigeria to the global AI treaty and FIFA's transfer rule reform, the year was marked by a convergence of local and international efforts to foster accountability, inclusivity, and sustainability within the sector. This roundup captures the year's pivotal moments, reflecting the dynamic interplay of innovation and regulation while setting the stage for emerging trends in 2025.

Key Highlights - Technology and Telecommunications

NCC Orders Telcos to Bar Subscribers Not Linked to NIN

In February 2024, the Nigerian Communications Commission (NCC) mandated telecom operators to disconnect subscribers who failed to link their SIM cards to their National Identification Numbers (NIN). This policy aimed to strengthen national security, curb identity theft, and enhance the integrity of Nigeria's digital ecosystem. By enforcing the NIN-SIM linkage, NCC sought to reduce fraudulent activities and align telecom regulations with global digital identity trends. This directive was a significant step toward creating a harmonized digital economy, ensuring robust data protection, and safeguarding the integrity of telecommunications networks.

Key Publications of NDPC: Strategic Roadmap, Guidance Notices and Implementation Directive

Notable regulatory advancements in the technology sector include Nigeria Data Protection Commission's (the "NDPC") publication of its strategic roadmap and action plan in February 2024, the Guidance Notice on the Registration of Data Controllers and Data Processors of Major Importance (DCPMIs) and the draft Nigeria Data Protection Act General Application and Implementation Directive (GAID) 2024. The strategic roadmap and action plan provides a structured approach to implementing the Nigeria Data Protection Act (NDPA), while the Guidance Notice on DCPMIs ensures that major data controllers and processors are properly registered and monitored. GAID clarifies the application of the NDPA, addressing ambiguities and ensuring consistent implementation. These measures were introduced to cure defects such as regulatory uncertainty, weak enforcement mechanisms, and inadequate oversight of entities handling large volumes of personal data. Another significant development was the launch of NDPC's registration portal, marking a significant step toward streamlining compliance processes. These initiatives further emphasize NDPC's commitment to the effective implementation of the NDPA and its ongoing efforts to enhance awareness and ensure compliance within the industry.

NCC Suspends Licensing of Mobile Virtual Network Operators (MVNOs)

In May 2024, NCC announced an indefinite suspension of MVNO licensing, citing the need to assess market saturation and competition dynamics. MVNOs, introduced in 2022, were expected to expand telecom penetration, particularly in underserved regions. However, after issuing over 43 licenses, NCC halted new approvals to prevent an unsustainable industry landscape. The decision reflects broader concerns about market stability and fair competition, as existing telecom giants dominate the sector. While the review may lead to stricter regulatory frameworks, the pause could also slow digital inclusion efforts, particularly in rural areas where MVNOs were positioned to bridge connectivity gaps. During the course of the year, our team analysed the move by NCC and our thoughts can be found in this article – NIGERIAN COMMUNICATIONS COMMISSION SUSPENDS LICENSING OF MOBILE VIRTUAL NETWORK OPERATORS (MVNOS)

EU, US, UK Sign the First Legally Binding AI Convention

In May 2024, the European Union, United States, and United Kingdom signed the world's first legally binding international Artificial Intelligence (AI) treaty, setting a precedent for global AI regulation.

The convention focuses on balancing innovation with accountability, ensuring AI aligns with human rights principles and ethical standards. This development signals a major shift in global AI governance, with significant implications for Nigerian AI startups, financial services, and cybersecurity. As AI-driven automation expands in sectors like fintech, healthcare, and entertainment, local regulatory bodies are likely to introduce compliance frameworks mirroring international AI policies in the near future. The treaty also increases the likelihood of global tech firms adjusting their AI operations to align with stricter ethical standards, impacting businesses leveraging AI-generated content, predictive analytics, and data-driven marketing.

NDPC and FCCPC Fine Fidelity Bank and Meta for Data Privacy Violations

In August 2024, Nigerian regulators made bold moves in data privacy enforcement, with NDPC fining Fidelity Bank for violating data protection laws, and the Federal Competition and Consumer Protection Commission (FCCPC) imposing a $220 million penalty on Meta for breaching Nigerian users' privacy rights. The sanctions reflect Nigeria's growing regulatory stance on consumer data rights and the government's commitment to holding corporations accountable for data misuse. It also highlights the rising legal risks for companies that fail to secure consumer data and sets a new benchmark for enforcement actions in Nigeria's data privacy landscape.

Cybercrimes (Prohibition, Prevention, Etc.) (Amendment) Act2024

The Maiden Cybercrimes (Prohibition, Prevention, Etc.) Act 2015 (the "Act") was amended within the year, introducing key updates within the sector. Highlights of the Act include but not limited to, the imposition of a 0.5% cybersecurity levy on electronic transactions to fund cybersecurity initiatives; compulsory reporting of cyber threats within a 72- hour timeline and the imposition of penalties for non-compliance; and broadening of the category of members of staff of companies who can be held liable for identity theft and impersonation, beyond financial institutions to include individuals engaged in public and private sector services.

Significantly, the Act explicitly recognized the new data protection regime under the NDPA, and aligned with the provisions of the Act, requiring data retention and protection systems in line with the Act. This Act is indeed a welcome development as it signifies Nigeria's attempt to strengthening its cybersecurity framework while fostering a more secure digital economy.

UN AdoptsLandmark Cybercrime Convention

In December 2024, the United Nations General Assembly adopted a cybercrime treaty, marking a global effort to combat digital threats. The convention aims to enhance international cooperation, assist developing countries in cybersecurity enforcement, and address cyber-related financial crimes such as fraud, hacking, and online money laundering. For Nigeria, where cybercrime remains a pressing issue, the treaty is expected to drive stricter national policies, encourage cross-border law enforcement partnerships, and boost corporate investment in cybersecurity infrastructure.

Key Highlights - Entertainment and Media

National Film and Video Censors Board Implements Stricter Content Regulations

In July 2024, the National Film and Video Censors Board (the "NFVCB") strengthened its regulatory oversight by expanding its censorship and classification policies to include a wider range of audiovisual content, including skits, short films, and online streaming content. The Board aimed to curb the portrayal of drug use, offensive language, nudity, harmful rituals, sexual violence, and discriminatory content, aligning with global efforts to promote responsible media consumption. To modernize its enforcement mechanisms, NFVCB announced plans to transition to a digital platform, allowing filmmakers to register and submit films online for classification and approval within 6 to 48 hours. While this initiative is yet to be fully implemented, it reflects the growing influence of digital compliance frameworks in Nigeria's entertainment industry.

Federal Government Approves Creative Economy Development Fund

The Federal Executive Council approved the Creative Economy Development Fund (the "CEDF"), designed to support the creative sector through financial instruments such as debt and equity funding. Backed by the African Development Bank through the Investment in Digital and Creative Enterprises program, the initiative includes an Intellectual Property Monetisation Framework, allowing creatives to leverage intellectual property as collateral. This innovative approach aims to enhance access to funding, drive growth, and professionalize Nigeria's creative economy, positioning it for global competitiveness.

Federal Government to Launch a National Intellectual Property Policy for the Creative Industry

In August 2024, the Ministry of Art, Culture, and the Creative Economy announced plans to launch Nigeria's first comprehensive Intellectual Property (IP) Policy. This initiative, developed in collaboration with the Ministry of Industry, Trade, and Investment, aims to establish a structured framework for protecting intellectual property rights in Nigeria's creative industry. With the creative economy being one of Nigeria's fastest-growing sectors, this policy is expected to address copyright enforcement, content monetization, licensing regulations, and anti-piracy measures. The move aligns with global trends, as regulators worldwide are strengthening IP protections to safeguard creators and attract foreign investment in their entertainment industries. By October 2024, the Federal Government reaffirmed its commitment to IP protection through the revalidation of the National Intellectual Property Policy and Strategy Paper, a document aimed at harmonizing existing IP laws with international best practices. If effectively implemented, the policy will encourage innovation and enhance Nigeria's positioning as a hub for digital and creative content.

Alcon Entertainment Sues Elon Musk Over Unauthorized Use of Blade Runner 2049 Imagery

In October 2024, Alcon Entertainment filed a lawsuit against Tesla, Elon Musk, and Warner Bros., alleging unauthorized use of imagery from Blade Runner 2049 in Tesla's robotaxi launch campaign. The lawsuit claimed that Tesla's use of Blade Runner's visuals misled the public into associating the film with its product, causing financial losses and potential reputational harm. This legal battle highlighted the increasing scrutiny around unauthorized commercial use of copyrighted materials and the importance of upholding intellectual property in digital marketing and branding. Given the rapid expansion of AI-generated content and brand collaborations, this case serves as a cautionary tale for businesses leveraging pop culture references in advertising without obtaining proper licensing rights.

Key Highlights - Sports

Court of Arbitration for Sport Upholds IOC's Decision to Derecognize the International Boxing Association (IBA)

In April 2024, the Court of Arbitration for Sport (CAS) upheld the International Olympic Committee's (IOC) decision to revoke the recognition of the International Boxing Association (IBA) due to persistent financial irregularities and governance failures. The ruling signaled the IOC's increasing intolerance for mismanagement within global sports federations and raised concerns about boxing's future in the Olympic Games. This decision may influence Nigerian sports regulatory bodies to tighten compliance measures for national sports federations, ensuring greater financial transparency and governance accountability.

President Bola Tinubu Scraps Sports Development Ministry

In October 2024, President Bola Tinubu dissolved the Sports Development Ministry, transferring its responsibilities to the National Sports Commission (NSC). The move was part of a broader government restructuring strategy aimed at reducing administrative redundancies and enhancing sectoral efficiency. The initiative reflects the government's broader strategy to consolidate overlapping functions across ministries.

European Court Ruling in Lassana Diarra Case Prompts FIFA Transfer Rule Reforms

In a landmark decision, the Court of Justice of the European Union (CJEU) ruled in favour of former French footballer Lassana Diarra, declaring FIFA's Article 17 of the Regulations on the Status and Transfer of Players (RSTP) incompatible with EU law. The ruling prompted FIFA to suspend all transfer-related cases under Article 17, forcing the organization to revise its transfer rules to align with European legal standards. This decision reflects the growing legal challenges faced by sports governing bodies and may influence Nigerian football authorities to adopt stronger regulatory frameworks for player contracts and transfer disputes.

Supreme Court Voids National Lottery Act, Grants States Control Over Gaming Regulations

In a landmark ruling, the Supreme Court of Nigeria declared the National Lottery Act unconstitutional, stating that gaming and lotteries fall under the exclusive jurisdiction of state governments. This decision effectively removes federal oversight of lotteries and betting operations, granting states autonomy in gaming regulation. The ruling is expected to reshape Nigeria's gaming industry, allowing state governments to enact tailored regulatory frameworks and potentially attract more gaming investments.

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