The University of Aberdeen's Centre for Commercial Law launched “The Evolving Commercial Law Landscape” series during the 2024/25 academic session to unpack contemporary issues within its key areas of focus. The inaugural contribution to the series is by Davidson Oturu. Davidson Oturu is the Managing Partner at Nubia Capital, a US-based Venture Capital Firm specialising in funding and investing in tech-enabled startups in Africa. He is also part of different angel investment syndicates and SPVs that invest in tech businesses in North America and Africa. He was previously a Partner at AELEX, a law firm in Nigeria and Ghana, where he headed the firm's Intellectual Property, Startups, Innovation, and Technology Practice and has been recognised in legal directories such as Chambers Fintech Guide, IFLR 1000, Legal 500, Who’s Who Legal, WTR 1000, IP Stars, and Chambers Global.
Davidson is a non-executive director in different companies and mentors entrepreneurs on matters related to regulatory compliance, board management, intellectual property, and startup-related challenges. He also serves as a mentor at the Founder Institute and Techstars, which are renowned international pre-seed accelerators. His involvement in shaping the entrepreneurial landscape in Africa saw him play a pivotal role in heading the drafting team that drafted the Nigeria Startup Act, addressing regulatory and financial challenges faced by tech-enabled startups. He was appointed to the country’s National Council for Digital Innovation & Entrepreneurship for the Act's implementation and monitoring. Additionally, he was an executive member of the committee set up by the Securities & Exchange Commission to set up a framework for fintech usage in the Nigerian capital market, which led to the creation of a roadmap for the introduction of cryptocurrencies, robo-advisory and other emerging technologies.
In 2022, he launched the Davidson Oturu Law School Scholarship, supporting scholars from underprivileged backgrounds to attend the Nigerian law school. He also runs a mentorship program for young professionals. His academic background includes an LLB from the University of Ibadan, an LL.M in International Business Law from the University of Cumbria, and an MBA from Queen Mary University of London. He writes and speaks on law, finance, and technology, contributing significantly to these discourses.
How are New and Emerging Technologies Reshaping the Orthodoxies of Commercial law? Discuss Examples from your Areas of Expertise and Practice.
New and emerging technologies are fundamentally altering the traditional frameworks of commercial law in several areas, particularly in intellectual property (IP), data protection, fintech, and corporate governance. A key shift is occurring in intellectual property law due to artificial intelligence (AI). For example, AI systems are now capable of creating artwork, software code, and even inventions. Traditional IP law, which focuses on human creators and inventors, is struggling to adapt to the question of how to allocate ownership of AI-generated content. Should the AI itself be an inventor, or should the ownership revert to the developers or users of the AI? In data protection, technologies such as big data analytics and blockchain are raising significant challenges. The General Data Protection Regulation (GDPR) in Europe, as well as similar regulations/legislation on data protection released by several countries, requires businesses to safeguard personal data, but blockchain’s decentralised and immutable nature complicates compliance. As a result, the intersection of privacy laws and blockchain technology is reshaping how commercial entities engage with data. In the fintech space, the rise of decentralised finance (DeFi) and cryptocurrencies is disrupting traditional banking and financial services, which were previously regulated by clear-cut rules. Regulators are still trying to catch up with how to supervise crypto assets, especially in the areas of anti-money laundering (AML) and taxation.
How can Legal Frameworks Effectively Address the Opportunities and challenges that arise from the Incursion of New and Emerging Technologies? Discuss Examples from your Areas of Expertise and Practice.
Legal frameworks must evolve to address the dual forces of innovation and risk brought by new technologies. One approach is adaptive regulation, which allows legal structures to evolve alongside technological advances. This has been particularly important in sectors like fintech. For instance, the introduction of regulatory sandboxes by financial authorities in the UK and Singapore has allowed fintech companies to test innovative products in a controlled environment without being subjected to full regulatory compliance from the outset. This approach encourages innovation while managing risk. Another strategy is the development of technology-specific regulations. The European Union’s Artificial Intelligence Act is an example of how a proactive legal framework can address risks such as bias, privacy violations, and safety concerns associated with AI. In intellectual property law, a new category of rights may be necessary to clarify ownership issues regarding AI-generated creations. In data protection, revisiting the application of laws like the GDPR to blockchain technology is essential. Smart regulations that can accommodate decentralised systems while protecting consumer rights will prevent stifling innovation in this space.
Discuss Pertinent Effects of Climate Change and Global Economic Shifts, alongside Recommendations on Ways to Address Them.
Climate change has a profound effect on commercial law, particularly in terms of sustainability, corporate responsibility, and finance. Many jurisdictions are integrating environmental, social, and governance (ESG) standards into corporate law, requiring companies to adopt more sustainable practices. For example, the rise of green bonds and other sustainable financing mechanisms allows businesses to raise capital for environmentally responsible projects. However, the lack of a unified global standard for ESG criteria is causing confusion and inconsistency in reporting and compliance. Another impact is on supply chains, where climate change has forced companies to adopt more resilient and sustainable practices. Laws mandating climate-related disclosures, such as the Task Force on Climate-Related Financial Disclosures (TCFD) framework, are pushing businesses to be more transparent about their climate risks.
Global economic shifts, particularly the rise of economic nationalism and protectionism, are reshaping international commercial law. Tariff wars, the reshoring of manufacturing, and increased government intervention in domestic industries present challenges to free trade. This trend is evident in the trade tensions between the US and China, where companies are now facing regulatory uncertainty due to tariffs, sanctions, and export controls.
To address these shifts, legal frameworks must carefully balance domestic economic priorities with international trade commitments. This can be achieved by updating bilateral trade agreements to reflect the evolving needs of national industries while fostering mutually beneficial relationships. Bilateral agreements allow countries to tailor trade terms and protect local economies without undermining global commerce. Additionally, multilateral cooperation through platforms like the World Trade Organisation (WTO) and regional trade blocs is essential to maintain a fair, rules-based trading system, ensuring that protectionist measures do not disrupt global economic integration. Together, these strategies promote economic growth, safeguard domestic interests, and uphold global trade obligations.
Highlight the Latest Legal Developments in your Areas of Expertise and Practice.
I have quite a number of areas I would say my expertise cover, but in areas such as fintech, technology, intellectual property, and venture capital, several significant legal developments are reshaping the landscape:
1. Fintech
- Regulatory Sandboxes: Countries are increasingly adopting regulatory sandboxes to foster innovation while ensuring compliance. These regulations, such as the Central Bank of Nigeria’s framework for regulatory sandbox operations, allow emerging fintech solutions to be tested in a controlled environment before full regulatory approval. This promotes innovation while safeguarding consumer protection.
- Cryptocurrency Regulation: The legal status of cryptocurrencies continues to evolve, with governments grappling with balancing regulation and fostering innovation. For example, Nigeria’s SEC rules for digital assets provides a more structured regulatory environment, ensuring investor protection while supporting blockchain technology’s growth.
2. Technology
- AI and Data Governance: Legal frameworks are catching up with the rise of artificial intelligence (AI) and big data. The European Union’s AI Act aims to regulate AI applications, ensuring they are ethical, transparent, and non-discriminatory. Similarly, data protection laws, such as GDPR in Europe and its growing influence in other jurisdictions, are central to regulating data-driven technologies.
- Digital Services Regulations: The growing prevalence of digital platforms has led to regulatory initiatives such as the EU’s Digital Services Act, which imposes greater responsibility on digital platforms for content moderation and transparency in business practices. This aims to address concerns around misinformation and monopolistic behaviours.
3. Intellectual Property (IP)
- AI-Generated IP: The rise of AI in creative processes has raised questions about IP rights, particularly in the ownership of creations generated by AI. Jurisdictions like the UK Intellectual Property Office are examining whether AI-generated works should be granted IP protections and, if so, to whom those rights should belong—the creator or the AI system’s developer.
- IP Protection in Emerging Markets: Many African countries are updating IP laws to support innovation and attract foreign investment. For instance, Nigeria recently modernised its Copyright Act in 2022, expanding protection for copyright to cover digital and online infringements, which is crucial in today’s tech-driven marketplace.
4. Venture Capital
- Diversity and Inclusion in Investment: Legal frameworks and institutional policies are now focusing on increasing diversity in VC funding, particularly for underrepresented founders. Programs such as Diversity Riders (clauses requiring VC funds to include minority-led investments) are being adopted across North America and Europe, promoting equity in startup ecosystems.
- Alternative Funding Models: The rise of Special Purpose Acquisition Companies (SPACs) and Decentralised Autonomous Organisations (DAOs) is reshaping how startups raise capital. These models often operate in grey legal areas, leading regulators to catch up. In the U.S., the SEC has introduced stricter disclosure requirements for SPACs to ensure transparency and protect investors.
Please share any Additional Insights on the Issues Raised Above.
A significant insight from these discussions is the importance of collaboration between the legal profession, policymakers, and the tech industry. The pace at which new technologies and global challenges are evolving requires dynamic, flexible, and responsive legal frameworks that do not hinder innovation while ensuring the protection of public interests. Legal practitioners must stay proactive by engaging in multi-stakeholder dialogues and contributing to the formation of laws and regulations that anticipate future trends.
Another key observation is the need for a global harmonisation of laws—particularly in areas like data protection, artificial intelligence and climate change. Fragmented regulations across jurisdictions create compliance burdens for companies operating internationally, and efforts like the OECD’s work on global taxation of digital companies show that multilateral approaches can bring greater certainty to businesses.
In summary, while these global shifts pose significant challenges, they also offer a unique opportunity for the legal profession to drive positive, forward-looking change that benefits both the economy and society.
