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Introduction
Once considered futuristic, biometric technology is now part of everyday life in Nigeria's digital landscape. From unlocking phones with a face scan to authorising payments with a thumbprint, Nigerians are quickly embracing biometric authentication. Adoption is accelerating across fintech, insurtech, healthtech, and digital marketplaces, creating new opportunities for Biometrics-as-a-Service providers.
Biometrics uses measurable physical, physiological, or behavioural traits to identify or verify individuals. It relies on data derived from processing unique features such as fingerprints, facial images, iris or retinal patterns, voice, blood type, or DNA. When analysed with specialised technology, these traits can accurately confirm a person's identity.
But with opportunity comes risk. Unlike a password that can be changed, biometric data is permanent. Once leaked or stolen, it cannot be replaced. A single breach can expose users to identity theft or multiple unauthorised transactions and for startups, the resulting loss of trust can be far more damaging than any regulatory fine.
In this edition of TechBrief by TALP, we explore key considerations for startups integrating biometrics into their solutions.
Key Considerations
So, your startup is using biometrics or thinking about it. Here are a few considerations to ensure you are not putting your users or your business at risk:
- Do you really need biometrics?
Before jumping in, ask yourself and your team if biometrics are essential to your solution. Could a less intrusive method work just as well? Data protection laws and regulations emphasise data minimization, meaning you should only collect what is necessary and keep it only for as long as needed.
Biometric data is not just another dataset. Under most data protection frameworks, such as Nigeria's Data Protection Act ("NDPA") and the EU's General Data Protection Regulation ("GDPR"), it is treated as sensitive or special category data. This means it can only be processed under strict conditions. Using biometrics just because it feels cutting-edge can quickly turn into a costly compliance headache. Always weigh the convenience and "wow" factor against the regulatory and reputational risks.
- Have you assessed the associated risks?
If you are dealing with sensitive data like biometrics, a Data Privacy Impact Assessment is not optional, it is essential. It helps you identify possible impact, spot vulnerabilities and reduce risks before rollout. Think of it as your system's health check-up before launch.
- What internal safeguards are in place?
Once you have identified the risks, it is time to build strong defences. Start by encrypting biometric data both in transit and at rest, and store it separately from other personal information. Limit access to authorised personnel only, and layer on extra protection through multifactor authentication, and regular security reviews.
Have a clear incident response plan so your team knows exactly what to do if something goes wrong and maintain a practical security policy that everyone (not just IT) understands. Most importantly, invest in regular staff training to keep privacy and security top of mind. These steps help keep you compliant, protect your users, and build long-term trust in your brand.
- Do you have a legal basis for processing biometrics?
That little "I agree" checkbox would not cut it. Under the NDPA (and most global standards), consent must be informed. Your users need to clearly understand what biometric data you are collecting, why you need it, how it will be used, and any potential risks involved. A case in point is Meta's Texas settlement in 2024, where the company paid $1.4 billion for collecting and processing users' biometric data without proper informed consent.
There are other valid legal bases for processing biometrics, such as performing a contract with the user, protecting someone's vital interests, for substantial public interest, medical or public health purposes or performing legal obligations or for legal proceedings. If you are not sure what your basis for processing is, get proper legal advice before your "innovation" becomes the next headline.
- Is your biometrics provider compliant?
Your security is only as strong as your weakest service vendor. Choose providers that are ISO-certified and have solid privacy credentials. Review service contracts carefully and seek legal assistance where necessary. Ensure your service contracts clearly allocate liability to your service providers and indemnify your startup in the event of a data breach. Do not be the one paying for data breach resulting from your service provider's negligence.
- Are you compliant with the law?
Tech companies that process personal data of more than 200 individuals, or operate in regulated sectors like finance, insurance, health, education, e-commerce, aviation, power, communication, or hospitality, qualify as Data Controllers or Processors of Major Importance ("DCPMI") under Nigerian law. If your startup falls in any of the above categories, you need to register with the Nigeria Data Protection Commission and comply with compliance obligations of DCPMIs under the NDPA. To know more on the compliance obligations of DCPMIs you can read our publication here.
- Are you holding on to old biometric data?
Data minimization is not just a buzzword, it is a risk management tool. If a client is no longer active and there is no legal reason to keep their biometric data, delete it. Holding onto it "just in case" is not only unnecessary, but also a potential lawsuit waiting to happen.
- Do your clients know their rights?
Your users are not just data points on your dashboard, they are real people with real rights. Under the law, they have rights to access, correct, erase, or even have their data "forgotten." Make sure your privacy policy made available to users outline these rights. Also ensure that your systems enable the exercise of these rights and foster quick response to complaints. Ignoring your users' feedback is not just bad service, it is a fast track to reputational damage.
- How often do you audit your operations?
Regular audits help you catch weaknesses before hackers (or regulators) do. Work with a licensed DPCO and consider penetration testing to spot vulnerabilities early. Prevention is cheaper and quieter than crisis management.
Conclusion
Biometrics can be a game-changer for startups, but it is a double-edged sword. Handle it carelessly, and it could cut deep financially, legally, and reputationally.
To view original Tope Adebayo article, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
