What does the Enactment of the Nigeria Data Protection Act mean for your Startup?

The Federal Government of Nigeria has introduced an additional legal mechanism to the existing arsenal for safeguarding data within the country. Despite the Nigeria Data Protection Regulation (NDPR) addressing this need to a certain extent, it holds the status of a supplementary legal source with comparatively less robust legal and judicial authority. This framework fails to offer adequate reassurance to international investors and collaborators who are progressively apprehensive about operating within data-vulnerable environments and markets.

This Act seeks to provide a legal framework for the protection of personal information and establish the Nigeria Data Protection Commission for the regulation of the processing of personal information and related matters

The importance of privacy and data protection has risen to the forefront for many countries, businesses, and individuals alike in the modern digital landscape where significant volumes of data are being collected, stored, and processed online.

The Act applies to businesses that are legally incorporated and established in Nigeria to conduct business as well as those that are not legally incorporated or established in Nigeria but have operations that regularly use the personal data of Nigerian citizens and residents.

It is significant to note that the Act supersedes all other laws and regulations that are directly or indirectly related to the processing of personal data of data subjects in Nigeria and that the Act’s provisions take precedence over any inconsistencies in those laws and regulations.

For entrepreneurs, the Act’s adoption means two key things: first, a more favourable and well-regulated environment for the use of data to advance the company in line with global best practices. Second, it means that entrepreneurs and business owners who rely on data to advance their operations must now step up their compliance efforts by attempting to comply with the Act’s requirements.

References

  1. https://fpf.org/blog/nigerias-new-data-protection-act-explained/ accessed 23rd August 2023
  2. https://assets.kpmg.com/content/dam/kpmg/ng/pdf/nigeria-data-protection-act2023.pdf accessed 23rd August 2023

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