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You wake up to see your company's name splashed all over the news.
Not because you closed that huge funding round...
But because thousands of your customers' private data has leaked online.
Regulators are knocking. Lawyers are calling. Customers are tweeting. Investors are backing away.
Sounds dramatic? Ask the CEOs who thought it couldn't happen to them.
How It Starts
I've seen this happen to fast-scaling tech companies, respected groups, and unlimited liability firms in Nigeria.
They build brilliant products, sign up thousands of users, roll out flashy marketing...
But somewhere in that rush, they forget one critical truth: every piece of customer data is a secret that must be protected or risk losing everything.
Think About It This Way:
Getting robbed on an expressway is terrifying.
Getting robbed while leaving your vault wide open?
That's negligence. And the law doesn't forgive negligence.
The Hard Truth
The Nigeria Data Protection Act (NDPA) is not optional.
The NDPA is Nigeria's law that sets the rules for how companies must handle personal data.
It protects your customers' private information and sets penalties for anyone who mismanages it. Think of it as the fence that keeps your company from legal trouble and reputational ruin.
Under the NDPA, you must:
- Process data lawfully, fairly, and transparently
- Collect only what you need
- Keep data accurate and up to date
- Protect it with strong security measures
- Delete it when no longer relevant
Miss even one, and penalties come knocking.
What The NDPC Can Do
The NDPC is the government agency responsible for enforcing the NDPA.
They audit companies, investigate breaches, issue fines, and ensure everyone handling personal data is playing by the rules. They don't play favorites. They are of the school of thougths that believe that compliance is mandatory for all companies operating in Nigeria.
Many founders shrug and think: "It's just data." You will need to think again. The Nigeria Data Protection Commission can:
- Audit your company at any time
- Fine you ₦10 million or 2% of annual revenue, whichever is bigger
- Publish your name publicly
- Suspend your data processing
- Invite lawsuits from customers
Imagine explaining that to your foreign investors.
Also Read: The Nigerian Data Protection Commission (NDPC)
Your Customers Have Power Too
They can:
- Know what data you hold
- Correct or delete errors
- Block or restrict usage
- Object to marketing
- Lodge complaints directly with the NDPC
Ignore these rights, and they won't ignore you. Regulators, courts, and public opinion will.
How It Usually Happens
Companies often think a privacy policy is a website formality.
They:
- Copy a generic policy online
- Don't appoint a trained DPO
- Sign third-party contracts without DPAs
- Skip DPIAs for risky product rollouts. A DPIA is like a pre-flight safety check for your data.
Before launching a new product, system, or feature, it identifies risks that could expose personal data. Skip it, and you might be blind to vulnerabilities. Suddenly, fines, lawsuits, and PR nightmares can hit.
- Have no 72-hour breach reporting plan
Then a breach happens. A vendor slips, a hacker breaks in, or an employee leaks data.
The clock starts ticking. Fines stack up. PR nightmares explode.
A Lesson From Moniepoint
Even multi-billion-naira fintechs face fines. Moniepoint scaled fast, but behind the growth was strict legal diligence.
They didn't just launch products, they checked every box regulators, investors, and banks demanded.
Even they learned compliance gaps can cost millions.
The Real Cost of Non-Compliance
Non-compliance isn't just about fines. It's:
- Lost trust
- Lost customers
- Lost funding
- Potentially the beginning of the end
One small slip, and your company could vanish from investors' radars overnight.
Fix It Before It Breaks You
If you run a tech company, unlimited liability company, or a group of companies in Nigeria:
- Conduct a legal audit of your data privacy posture
- Draft NDPA-compliant, tailored policies
- Appoint a certified DPO (not just a title)
- Sign solid DPAs with vendors
- Train staff to prevent human error
- Have a breach plan for when, not if a leak happens
Your Vault Is Your Responsibility
At Charis Legal Practice, we help companies plug these gaps before disaster strikes.
We know what the NDPC looks for and what global investors demand.
Don't wait to be the headline.
Your company's data fortress can be secure but only if you act today.
Click here to speak to a business lawyer in Lagos who will protect your data like it's their own.
Happy reading!
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.
