Banks, institutions pay over N200m fines for breaching privacy rights of Nigerians

The Federal Government has collected a total sum exceeding N200 million from at least seven banks and various institutions.

The Federal Government collected these payments from these financial institutions as a consequence of their infringement upon the data privacy rights of Nigerian citizens.

Vincent Olatunji, the national commissioner of the Nigeria Data Protection Commission (NDPC), made this known while speaking with journalists at NDPC's headquarters in Abuja after President Bola Tinubu signed the commission's Act.

Cracking down on data breaches in Nigeria

According to The Nation, Olatunji highlighted that the penalties imposed on the institutions were the outcome of extensive investigations conducted by the commission within a year of the committed infractions.

Without disclosing the specific names of the banks and other institutions involved, Olatunji clarified that more than 100 private sector entities underwent investigations for diverse levels of personal data privacy breaches and infringements on personal data privacy.

Olatunji cited several cases wherein individuals' data was erroneously captured by banks, resulting in difficulties for affected individuals to access funds from their bank accounts.

Furthermore, he highlighted instances where customers experienced the unfortunate consequence of having money removed from their bank accounts due to breaches in personal data security.

NDPC investigating private universities, insurance companies and MDAs

Olatunji emphasised that ongoing investigations were being conducted regarding data breaches involving private universities and certain insurance companies.

He cautioned that all organisations acting as data processors and controllers must appoint data protection officers (DPOs) within their respective establishments.

The NDPC boss warned that the heads of government ministries, departments, and agencies (MDAs) would now be held accountable and subject to prosecution for data privacy breaches committed by their respective institutions in accordance with the provisions of the new law.

He further highlighted that compliance with the data privacy law by MDAs has shown improvement, rising from 4% to 9%.

Olatunji also elucidated that adherence to the primary legislation endorsed by President Tinubu would not only enhance the nation's digital economy but integrate the country into the global stage, thereby elevating its recognition and fortifying its position in the global digital economy landscape.