What to Know About Data Privacy in Nigeria for Businesses

Data privacy is one of the biggest issues for companies in the modern world, and Nigeria is no exception to that. As the user base of internet-based businesses continues to rise and encroach into all sorts of industries, ranging from marketing to finance, the protection of customer data is crucial. This becomes important as organizations in Nigeria gather and store progressively more customers’ data; adherence to data privacy laws is not only about legal issues, it is about maintaining customers’ confidence in organizations.

In this blog post, we seek to understand what Nigerian businesses need to know about data privacy, the laws that govern it, and best practices that should be applied to protect customers’ data. As a startup or as a large enterprise, knowing data privacy in Nigeria means escaping the legal traps, gaining a more trustful customer base, and getting a higher business reputation.

 

The Importance of Data Privacy for Nigerian Businesses

The Nigerian digital economy being in a relatively young space in the country has seen a rapid evolution over the last few years, especially within the Fintech, e-Commerce and telecommunication industries. With each business receiving and storing more specific information about its customers, including names addresses and banking details, the threat of data loss has grown.

With businesses engaging in more delicate customer data from names and addressing to even banking data the risk of the data being leaked has been felt. To Nigerian businesses, data privacy is not only about the prevention of hackers from accessing the flow of information; it is about addressing how customer data is managed which is in line with rules at national and international levels.

A failure to observe the best practices in data privacy in Nigeria will lead to hefty fines and loss of customer trust and business reputation. Businesses involved in the process of customer interaction must realize that data protection is not a technical problem only, but a business one.

 

Nigerian Data Protection Regulations: What You Need to Know

In a bid to ensure that business organizations respect the rights of customers to have their data protected, the Nigerian government has put in place several laws on data protection; the most recent being the Nigeria Data Protection Regulation. The NDPR was issued by the National Information and Technology Development Agency (NITDA) aimed at the protection of the citizens’ and residents’ personal data. There are standards to regulate how businesses obtain, use, store and transmit customer information and must be clear and secure.

According to the Nigerian data privacy law, any organisation is allowed to collect and process personal data from customers following customer approval, store the data safely, and alert the authorities in the unfortunate instance of data leakage. Other provisions that businesses have to fulfil according to the NDPR include; a data privacy policy that should contain information on how customer data is collected, processed, and protected.

The issue with the NDPR is that businesses involved in any line of business in Nigeria must adhere to the provisions of the law. Failure leads to fines that may be as high as halting operations in some industries. Also, if consumers continue to become aware of their rights to data privacy, more enterprises that effectively protect consumers' data enjoy a competitive advantage when it comes to customer loyalty.

 

GDPR Compliance for Nigerian Businesses

There is no gainsaying that the GDPR of the European Union has become the benchmark for data privacy across the globe and this has ramifications for Nigerian businesses which process the personal data of citizens of the European Union. Though the law is not Nigerian, every business that processes data that originates from customers from Europe, or any businessperson conducting business within the boundary of the EU, has to adhere to these provisions of the GDPR.

Most of the principles listed in the GDPR in Nigeria are similar to the NDPR like the ability to gain customer consent, ensuring data protection and ability to allow individuals to have the right to access or erase their data. Companies that are already in compliance with the NDPR will therefore have an easier time adopting GDPR. However additional care must be taken for the cross-border data transmission because the GDPR significantly restricts the way data is processed abroad.

First of all, compliance with both NDPR and GDPR requirements can be an interesting opportunity for Nigerian companies to access new markets and gain added credibility which would be interesting for companies planning to enter the European market. 

 

Key Business Data Security Practices in Nigeria

To ensure that its customers’ data is not violated and to assure compliance with Nigerian law, companies have to employ high levels of data protection. Here are some data privacy best practices in Nigeria that every business should consider:

1. Encrypt Sensitive Data: Security, of most data being transferred and stored is highly imperative as it involves the use of codes. Whether performing monetary operations or forwarding customers’ messages, encryption guarantees that access to the information will be available only to those who need it.

2. Use Secure Passwords and Multi-Factor Authentication (MFA): Password security is one of the most rudimentary measures of data security but a measure that is most times taken lightly. Ensuring the users follow the standard password procedures and incorporating MFA can reduce ruthless access to the organization’s networks.

3. Employee Training on Data Privacy: Another consideration which gives credence to the idea that human beings are a weak link is the fact that human error is one of the biggest causes of data breaches. Even if firms are not supposed to provide training to their workers concerning the provisions of the laws on information privacy, they ought to make slow but constant attempts to do so as this assists in eliminating incidents of leakage of sensitive data. There is a need for employees to understand what is required of them to protect the privacy of business data in Nigeria.

4. Implement Data Governance Policies: Data governance is the practice used to ensure that data is available, usable, accurate, and secure for an organization. The principles of data access, storage, and deletion mean compliance with Nigerian data privacy requirements and creating clear policies. This is useful for maintaining that data remains well-managed and protected.

5. Conduct Regular Audits and Risk Assessments: Data audits conforming to an organization’s regulatory requirements or normal risk assessments are effective in pointing out loopholes in any system. As long as a business processes its data securely and assesses and amends its data protection regularly, it can avoid data breaches and be on the right side of the NDPR.

 

Preventing Data Breaches in Nigerian Businesses

Crimes against data security and privacy may still take place despite higher safeguards. When they do, there is usually little that can be done to prevent substantial damage to the businesses involved. The law demands that the data breaches of companies are to be reported to the Nigerian Data Protection Commission and the users concerned.

Here are some key steps for data breach prevention in Nigeria:

- Monitor Data Pipelines: Monitoring of the data systems daily can assist businesses in identifying any discrepancies, or third-party access, occasions for corrective measures.

- Have a Response Plan: In the case where businesses confront data breaches, the companies need to have a prepared strategy to follow. This is in terms of learning who has compromised the security, limiting the effects that arise from the next step and informing the various regulators and consumers.

 

Challenges and Opportunities in Nigerian Data Privacy

Nigeria has made a lot of effort in the advancement of data protection and privacy; nonetheless, some challenges persist. Businesses are always challenged when it comes to the costs of implementing a reliable data security solution, especially SMEs. In addition, there is a lack of awareness about data privacy rights among consumers plenty of times.

But all these are a challenge and at the same time offer opportunities. As the reason many companies in Nigeria started focusing on the protection of data some of them will be able to establish an advantage by providing the customers with more security and increased transparency of the information. In addition, businesses that operate within compliance with data protection laws in Nigeria and other jurisdictions are likely to venture into the international markets easily.

 

Conclusion

More so, it needs to be pointed out that data privacy is not a luxury but a necessity for every Nigerian business that deals with customers’ data. Concerning the NDPR and GDPR for example, firms must go the extra mile to ensure their customers are not compromised and that their reputation does not hit rock bottom as is the case with recent data breaches.

However, data privacy for Nigerian companies must transcend the non-adherence to the law to avoid getting caught and having to pay fines but is rather part of a long-term Nigerian firm’s success strategy that involves a focus on building trust.  By implementing the data privacy standards of this study, Nigerian businesses will benefit from customer loyalty, operational international markets and leadership in the digital economy.

As the world continues to advance in the digital space, any business organization that is serious about data protection in Nigeria will be well prepared to tackle other emerging problems in future with more optimal gains on the other side of the protection trajectory is the establishment of a better and more trusting relationship between the customers and the businesses.