NDPA 2023 Explained: Everything Nigerian Businesses Need to Know About Data Privacy

As data continues to drive business decisions across Nigeria, the Nigeria Data Protection Act (NDPA) 2023 has become one of the most important laws for companies handling personal information. Whether you run a small online store or a multinational corporation, the NDPA directly affects how you collect, process, and protect customer data.

In this article, we’ll break down everything Nigerian businesses need to know about the NDPA 2023 — in simple, practical terms — and how to stay compliant in an evolving data protection landscape.

1. What is the NDPA 2023?

The Nigeria Data Protection Act (NDPA), signed into law in June 2023, provides a comprehensive legal framework for data protection in Nigeria. It strengthens the previous NDPR (Nigeria Data Protection Regulation) and aligns Nigeria’s data privacy standards with international best practices like the EU’s GDPR.

The NDPA establishes the Nigeria Data Protection Commission (NDPC) as the main regulatory authority, responsible for ensuring compliance and enforcing penalties against violations.

2. Why the NDPA Matters for Nigerian Businesses

Data is now one of the most valuable assets in the digital economy — but also one of the most regulated. The NDPA ensures that individuals’ personal data is handled lawfully, fairly, and securely.

For businesses, this means:

• Building trust with customers.
• Reducing cybersecurity risks.
• Avoiding financial penalties and reputational damage.

Under NDPA 2023, data privacy is no longer optional — it’s mandatory.

3. Key Principles of the NDPA 2023

Here are the foundational principles every business must understand and apply:

NDPA Principle	Meaning	Example
Lawfulness, Fairness & Transparency	Process data only for legitimate purposes, with full disclosure.	Inform customers how their data is used during sign-up.
Purpose Limitation	Collect data only for specific, stated reasons.	Don’t use customer emails collected for newsletters to run unrelated ads.
Data Minimization	Gather only the data necessary for the intended purpose.	Request only essential details during account registration.
Accuracy	Keep data up-to-date and correct errors quickly.	Allow users to update their phone numbers or addresses.
Storage Limitation	Don’t retain data longer than needed.	Delete inactive user accounts after a set period.
Integrity & Confidentiality	Secure data against unauthorized access or breaches.	Use encryption and secure cloud storage.
Accountability	Be responsible for all data processing actions.	Document policies and demonstrate compliance when audited.

4. Rights of Data Subjects Under NDPA 2023

Individuals have more control over their personal data than ever before. Nigerian citizens can:

• Access their personal data from any organization holding it.
• Correct or delete inaccurate or outdated information.
• Withdraw consent for data processing at any time.
• Request data portability, transferring their information to another service provider.
• Object to the use of their data for direct marketing or profiling.

Businesses must have mechanisms to handle these requests within specified timelines.

5. Obligations for Businesses Under the NDPA

To comply with the Act, organizations must:

1. Appoint a Data Protection Officer (DPO) – for oversight and compliance.
2. Register with the NDPC – showing commitment to lawful data handling.
3. Conduct Data Protection Impact Assessments (DPIA) – especially when processing sensitive data.
4. Implement strong security measures – encryption, access control, and incident response protocols.
5. Maintain records of processing activities – to demonstrate accountability.

Failing to meet these obligations can lead to severe penalties, including fines and reputational damage.

6. NDPA Enforcement and Penalties

The NDPC has the power to investigate, audit, and sanction organizations that violate the Act.
Penalties depend on the severity of the breach, but they can reach:

• ₦10 million or 2% of annual gross revenue (for small and medium enterprises).
• ₦100 million or 2% of annual gross revenue (for large enterprises).

In addition to financial penalties, the NDPC can order suspension of data processing activities and public disclosure of violations — which can seriously harm business reputation.

7. Real-Life Example: Lessons from a Nigerian Fintech

In 2024, a popular Nigerian fintech startup was fined after failing to obtain explicit consent from users before sharing personal data with third-party marketing partners.

The company’s reputation suffered a massive blow, forcing it to overhaul its data policies and retrain staff.
This incident highlights how compliance is not just a legal requirement but a business survival strategy.

8. How to Stay NDPA-Compliant

Here’s a practical checklist for Nigerian organizations:

Step	Action
1	Appoint a qualified DPO.
2	Audit all data collection and processing activities.
3	Update privacy policies and terms of service.
4	Ensure explicit consent is obtained and recorded.
5	Train employees on data protection best practices.
6	Implement strong cybersecurity and breach response plans.
7	Regularly review and update compliance documentation.

9. Future Outlook: Nigeria’s Data Privacy Landscape

The NDPA 2023 marks a new era for data governance in Nigeria. As more businesses digitize their operations, compliance will not only protect customers but also build global competitiveness.

Organizations that proactively embrace data protection will enjoy increased trust, stronger partnerships, and better opportunities for international expansion.

Frequently Asked Questions (FAQs)

1. Who enforces the NDPA in Nigeria?
The Nigeria Data Protection Commission (NDPC) is the main regulatory body enforcing compliance.

2. Does the NDPA apply to small businesses?
Yes. All organizations — big or small — that process personal data of Nigerian citizens are covered.

3. What’s the difference between NDPR and NDPA?
The NDPA replaces the NDPR, expanding its scope, enforcement power, and penalties.

4. What happens if my business violates the NDPA?
You may face investigations, fines, or public sanctions, depending on the nature of the violation.

5. Is having a privacy policy enough for compliance?
No. A privacy policy is just one step — businesses must implement real data protection practices.

Final Thoughts

The NDPA 2023 is not a law to fear — it’s an opportunity for Nigerian businesses to modernize their data management practices and build deeper trust with customers.

Those who take compliance seriously today will lead Nigeria’s digital economy tomorrow.