What Businesses Need to Know

In Nigeria, the surge in digital transformation has brought unprecedented opportunities for businesses, but it has also heightened the risks of data breaches. With cyber threats on the rise, understanding the legal consequences of data breaches is critical for organizations aiming to protect sensitive information and maintain compliance. At Penlit & Greyson Legal Practice, we specialize in guiding businesses through Nigeria’s data protection landscape, ensuring robust compliance and minimizing risks. This article explores the legal ramifications of data breaches in Nigeria, key regulations, and actionable steps to safeguard your organization.

The Growing Threat of Data Breaches in Nigeria

Nigeria has witnessed a sharp increase in data privacy breaches, with a 64% surge in incidents in Q1 2023, compromising 82,000 accounts, according to cybersecurity firm Surfshark. These breaches expose sensitive personal and financial data, leading to identity theft, financial fraud, and reputational damage. The Nigeria Data Protection Act (NDPA) 2023 and the Nigeria Data Protection Regulation (NDPR) 2019 form the backbone of the legal framework governing data protection, holding organizations accountable for breaches that compromise data subjects’ rights.

Legal Framework Governing Data Breaches in Nigeria

Nigeria Data Protection Act (NDPA) 2023

The NDPA, signed into law on June 12, 2023, strengthens Nigeria’s data protection regime by outlining obligations for data controllers and processors. It defines a data breach as a security incident leading to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure, or access to personal data. Under the NDPA, organizations must:

• Notify the Nigeria Data Protection Commission (NDPC) within 72 hours of becoming aware of a breach if it poses a risk to data subjects’ rights and freedoms.
• Inform affected data subjects immediately if the breach is likely to result in high risk, using clear language and suggesting mitigation measures.
• Implement technical and organizational controls to prevent and mitigate breaches.

Nigeria Data Protection Regulation (NDPR) 2019

The NDPR, issued by the National Information Technology Development Agency (NITDA), complements the NDPA by mandating lawful data processing and requiring organizations to appoint Data Protection Officers (DPOs). Non-compliance can lead to significant penalties, including fines and legal action.

Other Relevant Laws

• Cybercrimes (Prohibition, Prevention, Etc.) Act 2015: Criminalizes unauthorized access to data and imposes penalties, including fines and imprisonment.
• Constitution of the Federal Republic of Nigeria 1999 (As Amended): Recognizes the right to privacy, allowing data subjects to seek redress for violations through fundamental rights enforcement actions.

Legal Consequences of Data Breaches

Data breaches in Nigeria carry severe legal, financial, and reputational consequences for organizations. Below are the key implications:

1. Regulatory Fines and Penalties

The NDPC has intensified enforcement, investigating 1,369 companies in 2025 for privacy violations and imposing significant fines. For example, Multichoice Nigeria was fined ₦766.2 million in July 2025 for failing to obtain user consent and illegally transferring data abroad. Non-compliance with the NDPA or NDPR can result in:

• Fines up to 2% of annual gross revenue or ₦10 million, whichever is higher, for data controllers of major importance.
• Additional penalties for failing to report breaches within the mandatory 72-hour window.

2. Civil Actions and Damages

Data subjects affected by a breach can file civil lawsuits for damages caused by loss, injury, or harm. Courts have recognized data privacy as part of the constitutional right to privacy, as seen in cases like Incorporated Trustees of Digital Rights Lawyers Initiative & Ors v. NIMC. Affected individuals may seek compensation for financial losses, emotional distress, or identity theft.

3. Criminal Liability

Under the Cybercrimes Act, individuals or organizations involved in unauthorized data access or cybercrimes may face criminal charges, including imprisonment for up to 7 years or fines of ₦7 million. This applies to cases involving hacking, phishing, or ransomware attacks.

4. Reputational Damage

Beyond legal penalties, data breaches erode public trust, leading to customer loss and damaged business relationships. The 2024 NDPC Annual Report highlighted how non-compliance undermines consumer confidence, impacting Nigeria’s digital economy.

5. National Security and Economic Risks

Breaches involving sensitive data, such as National Identification Numbers (NINs) or Bank Verification Numbers (BVNs), can compromise national security and destabilize the financial sector. Paradigm Initiative reported in 2024 that unauthorized websites were selling sensitive data for as low as ₦100, posing risks of fraud and criminal exploitation.

Steps to Mitigate Legal Risks

To avoid the severe consequences of data breaches, businesses must adopt proactive measures. Penlit & Greyson Legal Practice recommends the following steps:

1. Engage a Data Privacy Lawyer: Consult with experienced legal professionals to assess breaches, ensure compliance, and navigate legal proceedings. Our team at Penlit & Greyson provides expert counsel tailored to your business needs.
2. File a Complaint with the NDPC: Report breaches to the NDPC within 72 hours to demonstrate compliance and initiate investigations.
3. Conduct Regular Audits: Perform data protection audits to identify vulnerabilities and ensure adherence to NDPA and NDPR standards.
4. Appoint a Data Protection Officer (DPO): A DPO ensures ongoing compliance and serves as a point of contact for regulatory authorities.
5. Implement Robust Cybersecurity Measures: Use encryption, access controls, and employee training to prevent breaches.
6. Notify Affected Parties Promptly: Transparent communication with affected data subjects helps rebuild trust and meets legal obligations.

How Penlit & Greyson Legal Practice Can Help

At Penlit & Greyson Legal Practice, we understand the complexities of Nigeria’s data protection laws and the devastating impact of data breaches. Our services include:

• Compliance Audits: Assessing your organization’s data protection practices to ensure NDPA and NDPR compliance.
• Legal Representation: Defending your business in regulatory investigations or civil lawsuits arising from data breaches.
• Policy Development: Crafting tailored data protection policies and breach response plans.
• Training Programs: Educating your staff on data privacy best practices to prevent violations.

Visit our website at www.penlitgreyson.com to learn more about our data protection services and schedule a consultation today.

Conclusion

Data breaches in Nigeria carry far-reaching legal consequences, from hefty fines to reputational damage and criminal liability. With the NDPA and NDPR enforcing strict compliance, businesses must prioritize data protection to avoid penalties and protect their stakeholders. Partnering with Penlit & Greyson Legal Practice ensures your organization stays ahead of regulatory requirements and mitigates risks effectively. Contact us today to safeguard your business and build trust in Nigeria’s digital economy.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized guidance, consult with our data privacy experts at Penlit & Greyson Legal Practice.