Thought for 52s

The NDPR and Its Impact on Nigerian Tech Companies

In the rapidly evolving digital landscape of Nigeria, data protection has become a cornerstone for sustainable business operations, particularly for tech companies handling vast amounts of personal information. The Nigeria Data Protection Regulation (NDPR), introduced in 2019 by the National Information Technology Development Agency (NITDA), sets the framework for how organizations process, store, and secure personal data. As Nigeria’s tech sector booms—with startups in fintech, e-commerce, and health tech leading the charge—understanding the NDPR’s implications is crucial for compliance, risk mitigation, and growth. This article explores the NDPR’s key elements, its profound impact on Nigerian tech companies, and strategies for navigating these regulations. With the upcoming transition to the Nigeria Data Protection Act (NDPA) 2023 and the General Application and Implementation Directive (GAID) 2025, tech firms must stay ahead to avoid penalties and build trust.

At Penlit & Greyson Legal Practice, we specialize in guiding Nigerian tech companies through data protection compliance, helping them turn regulatory challenges into competitive advantages. Whether you’re a startup or an established player, our expertise in NDPR and emerging laws like NDPA can safeguard your operations and drive authority in the legal and tech spaces.

What is the NDPR?

The NDPR is Nigeria’s foundational data protection regulation, modeled after global standards like the EU’s General Data Protection Regulation (GDPR). Issued under the NITDA Act 2007, it aims to protect the privacy rights of Nigerian citizens and residents by regulating the collection, processing, and transfer of personal data. Personal data under NDPR includes any information that identifies an individual, such as names, email addresses, biometric data, or location details.

Key objectives of the NDPR include promoting fair data processing, ensuring accountability from data controllers and processors, and fostering a secure digital economy. It applies to any organization—local or foreign—that processes data of Nigerian data subjects, making it especially relevant for tech companies with online platforms, apps, or cloud services. As of September 2025, while NDPR remains in force, the NDPA 2023 establishes the Nigeria Data Protection Commission (NDPC) as the primary enforcer, signaling a shift toward more robust oversight.

Key Provisions of the NDPR

The NDPR outlines several core principles that tech companies must adhere to for lawful data handling:

• Lawfulness, Fairness, and Transparency: Data must be processed legally, with clear communication to data subjects about how their information is used.
• Purpose Limitation and Data Minimization: Collect only necessary data for specified purposes and avoid excessive retention.
• Accuracy and Storage Limitation: Ensure data is up-to-date and not kept longer than needed.
• Integrity and Confidentiality: Implement security measures to prevent unauthorized access or breaches.
• Accountability: Organizations must demonstrate compliance through records, audits, and the appointment of a Data Protection Officer (DPO) for entities handling significant data volumes.

Data subjects enjoy rights such as access to their data, rectification of inaccuracies, objection to processing, and the right to be forgotten. For tech companies, this means incorporating user consent mechanisms, privacy policies, and breach notification protocols into their operations. International data transfers require adequate safeguards, like binding corporate rules or standard contractual clauses, to align with global norms.

The Impact on Nigerian Tech Companies

The NDPR has reshaped the Nigerian tech ecosystem, presenting both opportunities and hurdles. Tech companies, often at the forefront of data-driven innovation, feel this impact most acutely.

Positive Impacts

Compliance with NDPR builds consumer trust, a vital asset in a market where data breaches can erode user loyalty overnight. For instance, fintech startups like those in payment processing gain investor confidence by demonstrating robust data security, facilitating partnerships and funding. Alignment with NDPR also opens doors to international markets, as it mirrors GDPR principles, making Nigerian tech firms more attractive for global collaborations.

Moreover, NDPR encourages innovation in privacy-enhancing technologies, such as encrypted data storage and AI-driven compliance tools. This has spurred growth in Nigeria’s cybersecurity sector, creating jobs and positioning the country as a regional tech hub.

Challenges and Negative Impacts

On the flip side, NDPR compliance imposes significant costs, particularly for startups and SMEs. Initial setup for data protection— including DPO appointments, audits, and IT upgrades—can range from ₦3.5 million upward, straining limited budgets. Enforcement has led to hefty fines; for example, in 2024, the NDPC fined Fidelity Bank ₦555.8 million for processing data without consent, and MultiChoice faced a ₦766 million penalty for privacy breaches.

Tech companies dealing with sensitive data (e.g., health apps or e-commerce platforms) face operational disruptions from mandatory audits and data impact assessments. Limited awareness and resources exacerbate these issues, with some startups risking closure, as seen in the BrightPay case where a breach led to operational halt.

Compliance Strategies for Tech Companies

To thrive under NDPR, tech firms should adopt proactive measures:

1. Appoint a DPO: Essential for companies processing large datasets; the DPO oversees compliance and reports to the NDPC.
2. Conduct Regular Audits: Annual compliance audits help identify gaps and ensure adherence to principles.
3. Implement Privacy by Design: Integrate data protection into product development from the outset, including user-friendly consent forms and secure APIs.
4. Train Staff and Partners: Educate employees on data handling and vet third-party processors through contracts.
5. Prepare for Breaches: Develop incident response plans, with notifications to NDPC within 72 hours of a breach.

For cross-border operations, leverage mechanisms like adequacy decisions or consent for data transfers. Tech companies classified as Data Controllers or Processors of Major Importance (DCPMIs)—those handling over 200 data subjects in six months—must register with the NDPC and file Compliance Audit Returns (CAR).

The Transition to NDPA and GAID 2025

As of September 1, 2025, the NDPR is still operational, but the GAID 2025, effective from September 19, 2025, will replace it and the NDPR Implementation Framework. Under the NDPA 2023, GAID introduces enhanced requirements like Data Privacy Impact Assessments (DPIAs) for high-risk processing, semi-annual DPO reports, and tiered DCPMI classifications (e.g., Ultra-High Level for fintech). This evolution aligns Nigeria’s framework more closely with global standards, but it demands immediate preparation from tech companies to avoid disruptions.

Case Studies: NDPR in Action

• Fintech Sector: A major bank was fined ₦400 million in 2024 for data breaches, highlighting the need for secure systems.
• E-Commerce: An online platform avoided penalties by implementing NDPR-compliant privacy policies, boosting user retention by 25%.
• Health Tech: Startups processing biometric data have invested in encryption, turning compliance into a marketing edge for trust-sensitive users.

These examples underscore how NDPR enforcement drives accountability while rewarding proactive firms.

Conclusion: Partner with Experts for Seamless Compliance

The NDPR has undeniably elevated data protection standards in Nigeria’s tech industry, fostering a safer digital environment amid growing cyber threats. However, with the imminent GAID 2025, tech companies must act now to adapt, avoiding fines that can reach 2% of annual gross revenue. By prioritizing compliance, businesses not only mitigate risks but also enhance their reputation and market position.

At Penlit & Greyson Legal Practice, we empower Nigerian tech companies with tailored legal advice on NDPR, NDPA, and GAID compliance. Our services include compliance audits, DPO support, contract reviews, and risk assessments to ensure your operations are future-proof. Visit our website at penlitgreyson.com to learn more about our data protection solutions, or contact us today for a free consultation. Let us help you build authority and drive growth in the competitive legal and tech landscapes.