Nigeria Data Protection Act: States Warned on Compliance Risks

• The Nigeria Data Protection Commission has warned states that failure to establish strong data protection systems may lead to loss of investor confidence and investment opportunities.
• Effective protection of personal data can improve the credibility of states, strengthen public trust, and make them more attractive to foreign investors.
• States must align their regulatory systems with the national framework to attract private capital and foster innovation.

effective protection of personal data can improve the credibility of states, strengthen public trust, and make them more attractive to foreign investors

The Nigeria Data Protection Commission (NDPC) has warned states that failure to establish strong data protection systems may lead to loss of investor confidence and investment opportunities. The warning was made by the National Commissioner and Chief Executive Officer of the NDPC, Vincent Olatunji, at a workshop for state governments on data privacy implementation. According to Olatunji, effective protection of personal data can improve the credibility of states, strengthen public trust, and make them more attractive to foreign investors. He emphasized that the growing movement of personal and commercial information across borders has made data protection an important consideration for businesses seeking to invest or enter partnerships.

The Nigeria Data Protection Act 2023 provides the legal foundation for data governance in Nigeria, while the General Application and Implementation Directive 2025 provides an operational framework. The NDPC has registered over 38,000 organizations and licensed 346 data protection compliance organizations, with more than 27,000 people working in the ecosystem. This growth highlights the potential benefits of implementing strong data protection systems at the state level, including job creation and revenue generation. However, inadequate privacy protection can slow investment and Nigeria's digital development.

States must establish strong data protection systems to strengthen credibility, public trust, and attract foreign investors. Failure to comply with the Nigeria Data Protection Act may lead to loss of investment opportunities. The NDPC has urged state governments to move beyond discussions and establish frameworks, policies, and institutional structures for implementing the national law rather than enacting separate state data protection laws. By aligning their regulatory systems with the national framework, states can provide the legal clarity necessary to attract private capital and foster innovation.

States must establish strong data protection systems to strengthen credibility, public trust, and attract foreign investors; failure to comply with the Nigeria Data Protection Act may lead to loss of investment opportunities.

Source: Original reporting via States risk losing investors over weak data protection — NDPC