The Future of Blockchain Litigation: Trends to Watch in 2025
October 20, 2025The rapid advancement of technology, particularly artificial intelligence (AI), big data, and digital platforms, has transformed societies globally, including Nigeria. As Africa’s largest economy and most populous nation, Nigeria stands at a critical juncture where technology can drive economic growth, improve public services, and enhance global competitiveness.
However, the unchecked deployment of technology without robust governance frameworks poses significant risks, including litigation arising from ethical violations, data breaches, and societal harm. Strong governance ensures that technology aligns with legal, ethical, and cultural norms, mitigating risks that could lead to costly legal disputes or societal unrest. In Nigeria, where regulatory frameworks are evolving but often lag behind technological innovation, the need for governance is urgent. This article explores why technology must be backed by strong governance, with a focus on litigation risk assessment, addressing the legal, economic, and social implications of ungoverned technology.
Nigeria’s technological landscape is vibrant yet fragmented. The country boasts a burgeoning tech ecosystem, with Lagos often dubbed the “Silicon Valley of Africa” due to its thriving startups, fintech innovations like Paystack and Flutterwave, and increasing adoption of digital platforms. However, this growth is accompanied by risks such as cyberattacks, data privacy violations, and algorithmic biases, which can trigger litigation. For instance, the absence of comprehensive data protection laws until the Nigeria Data Protection Regulation (NDPR) in 2019 left consumers vulnerable to exploitation by tech firms. Even with NDPR, enforcement remains weak, as evidenced by frequent data breaches in financial institutions, which have led to lawsuits and eroded public trust.
Strong governance—through clear regulations, independent oversight bodies, and judicial enforcement—can mitigate these risks by setting standards for data handling, algorithmic transparency, and accountability. Without such frameworks, Nigerian businesses face potential lawsuits from consumers, regulators, or international partners, particularly as cross-border data flows increase under frameworks like the African Continental Free Trade Area (AfCFTA).
From a litigation risk perspective, ungoverned technology amplifies exposure to legal challenges. In Nigeria, the legal system, rooted in common law, is increasingly confronted with technology-related disputes, such as intellectual property theft, cybercrimes, and breaches of contract in tech-driven transactions.
For example, fintech companies operating without clear regulatory oversight have faced lawsuits over unauthorized deductions or service failures, as seen in cases involving mobile banking apps. Governance frameworks, such as licensing requirements, mandatory cybersecurity audits, and consumer protection policies, reduce these risks by ensuring compliance with legal standards. Moreover, Nigeria’s judiciary is under-resourced, with slow case resolution times, which exacerbates litigation risks for tech firms operating in a regulatory vacuum. A robust governance structure, including specialized tribunals for tech disputes, could streamline resolutions and deter frivolous lawsuits while protecting consumers and businesses alike.
The socio-economic context of Nigeria further underscores the need for governance. With a youthful population—over 60% under 25—and high internet penetration (over 50% as of 2025), Nigeria is a prime market for digital platforms. However, widespread poverty, low digital literacy, and infrastructural deficits create vulnerabilities that ungoverned technology can exploit.
Besides, social media platforms have been used to spread misinformation, inciting violence during elections, as seen in the 2020 #EndSARS protests, which led to legal actions against platforms for failing to moderate content. Strong governance, including content moderation policies and collaboration with law enforcement, can mitigate such risks, reducing the likelihood of lawsuits from affected parties. Additionally, governance ensures equitable access to technology, addressing Nigeria’s digital divide, where rural areas lag behind urban centers in connectivity and tech adoption. Failure to address these disparities could lead to class-action lawsuits from marginalized groups, claiming exclusion from technological benefits.
From a global perspective, Nigeria’s integration into the international tech ecosystem necessitates governance aligned with global standards. The country’s participation in AfCFTA and partnerships with global tech firms require compliance with international regulations like the EU’s General Data Protection Regulation (GDPR). Non-compliance risks litigation from foreign entities, as seen in cases where Nigerian firms faced penalties for data mishandling in cross-border transactions. Governance frameworks that align with global best practices—such as regular audits, ethical AI guidelines, and transparency in data usage—can shield Nigerian businesses from such risks. Furthermore, Nigeria’s ambition to become a digital economy leader, as outlined in its National Digital Economy Policy and Strategy (NDEPS), hinges on governance that fosters trust and accountability. Without it, the country risks reputational damage and legal challenges that could deter foreign investment.
In conclusion, strong governance is indispensable for Nigeria’s technological advancement. It mitigates litigation risks by ensuring compliance with legal and ethical standards, protecting consumers, and fostering trust in the tech ecosystem.
As Nigeria navigates its digital transformation, governance frameworks must evolve to address local challenges—such as weak enforcement and digital illiteracy—while aligning with global norms. By prioritizing governance, Nigeria can harness technology’s potential while minimizing legal and societal risks, positioning itself as a leader in Africa’s digital economy.
