DistantNews
Support us
🇳🇬 Nigeria /Economy & Trade

States risk losing investors over weak data protection — NDPC

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • States in Nigeria risk losing investors if they do not establish robust data protection systems, the Nigeria Data Protection Commission (NDPC) warned.
  • Effective data privacy can enhance state credibility, public trust, and attractiveness to foreign investors.
  • The NDPC urged state governments to implement the national data protection law rather than create separate legislation.

Nigerian states face the risk of deterring investors and missing out on crucial economic opportunities if they fail to implement strong data protection and privacy systems. The Nigeria Data Protection Commission (NDPC) issued this warning, emphasizing that as economic activities increasingly move online, robust data security is paramount for attracting investment.

A lot of countries that don’t have your data protection law, no party is ready to do business with you. Because if there’s possible to transfer data, how are they going to ensure that data is in Nigeria?

— Vincent OlatunjiExplaining the international implications of weak data protection laws.

Vincent Olatunji, the National Commissioner and CEO of the NDPC, stated that effective personal data protection can significantly boost a state's credibility and public trust. This, in turn, makes them more appealing to foreign investors. Olatunji highlighted that many countries are hesitant to engage in business with nations lacking comprehensive data protection laws, especially concerning cross-border data transfers.

Speaking at a workshop for state governments, Olatunji urged them to prioritize the implementation of the Nigeria Data Protection Act. He stressed that states, as major data controllers through their ministries, departments, and agencies, must establish clear frameworks, policies, and institutional structures. This proactive approach, he explained, builds confidence among businesses and investors, assuring them that their data will be secure.

It builds trust and confidence that, yes, what we are doing with these states, we are secure, we are safe.

— Vincent OlatunjiDescribing the benefits of strong data protection for states.

The NDPC noted a substantial growth in Nigeria's privacy ecosystem, with over 38,000 organizations registered and a significant increase in employment within the sector. Olatunji pointed out that this expansion offers states opportunities for job creation and revenue generation. The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, also cautioned that weak privacy protection could impede Nigeria's digital development and investment flow.

We want to see action at the state level in terms of compliance.

— Vincent OlatunjiUrging state governments to take concrete steps towards data protection compliance.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog