NDPC Probes Top Nigerian Banks Over Alleged Data Breach

According to the Nigerian Data Protection Commission (NDPC), it is currently looking into possible data breaches at three deposit money institutions, one university, and other suspects.

Among others, the panel named Zenith, Fidelity, Guarantee Trust Banks, Babcock University, and Leadway Insurance as potential offenders.

This was disclosed by the National Commissioner of NDPC, Dr Vincent Olatunji, according to a statement released by the commission’s Head of Media, Mr Itunu Dosekun, on Thursday in Abuja.

Unlawful data processing complaints

Olatunji said the investigation of these organizations came following complaints from data subjects, explaining that with the new Nigerian Data Protection Act (NDPA), the commission had been empowered with a legal framework to address issues of citizens’ data breach.

He said, “In the last few weeks, the NDPC has received complaints bothering on unlawful data processing, unauthorised access to personal data and violation of data subjects’ rights.

“Under Part 10 of the newly-signed NDPA Act 2023, a data controller with a turnover of N200 billion yearly may pay as high as N2 billion, which represents two per cent of the gross revenue.

“Not only that, but offenders also risk up to a one-year jail term.

“We are currently investigating Guarantee Trust Bank, Fidelity, Unity, Zenith banks, Leadway Insurance and Babcock University, among others, for a data breach.’’

Online money-lending banks to seek clearance from NDPC

Many micro-finance banks, according to Olatunji, have not yet adapted their practices to the needs of data privacy and protection.

Further, he stated that the Federal Competition and Consumer Protection Commission’s (FCCPC) new authority will subject lending businesses to the law.

Before approving applications from online lenders, Olatunji said the mandate requires loan businesses to obtain compliance and clearance from NDPC.

The NDPC National Commissioner said,

• “The commission is investigating over 400 complaints in the online lending sector.
• “Soko Loan is already working on a comeback to the digital lending market, but yet to be approved.’’

He, however, said that the commission was engaging in serious sensitisation exercises to ensure that data controllers understood the implications of data breaches, noting that it prioritizes awareness more than the scorched earth enforcement process.

More News On RNN

World Bank to give Ukraine $1.5 bln in support for reconstruction

World Bank Pledges $750 Million to electrify rural Nigeria

Removal of fuel subsidy in 2023 could save Nigeria N3.9 trillion -World Bank