Data Protection Bill: Know It Guidelines, Objectives and Penalties
In recent times, Nigerian businesses have been fighting a battle against data threats of all kinds. And the odds are not in their favor. In 2021, 71% of Nigerian firms were hit by ransomware. Small and medium businesses have it even worse. Phishing attacks on SMEs grew by 87% in 2022 , compared to 37% in 2021. These attacks had terrible consequences. Scams, impersonations, and loss of privacy became the norm. All these discouraged foreign organizations from investing seriously in the country. The Director of Research and Development, Mr. John Dumesi, said, “Part of the findings and key threat trends we discovered are that data protection policies, enforcement, and disclosure practices are grossly lagging; there is a surge in corporate phishing attacks.” It was obvious that Nigeria needed a strong data protection policy. In 2023, a data protection bill was passed by the Nigerian government and in this article, you’ll learn what the Data Protection Bill means for Nigerians. The Objectives of Data Protection Bill 2023 The data protection bill for 2023 came on the heels of the NDPR (Nigerian Data Protection Regulation). Eventually, the NDPR was replaced by NDPA (Nigerian Data Protection Act), due to insufficient policies and weak enforcement. The primary objective of the data protection bill is to protect the fundamental rights and freedoms of data subjects by regulating the processing of personal data. The following objectives are as stated in the document: – “Protecting data subjects’ rights as well as providing means of recourse and remedies in the event of breaches; ensuring that data controllers and data processors fulfill their obligations to data subjects” – “Promoting data processing practices that safeguard the security of personal data and the privacy of data subjects; ensuring that personal data is processed in a fair, lawful, and accountable manner.” – “Strengthen the legal foundations of the national digital economy and guarantee the participation of Nigeria in the regional and global economies through the beneficial, trusted use of personal data.” – And finally , “Establishing an impartial, independent, and effective regulatory commission to superintend over data protection and privacy issues and supervise data controllers and data processors.” Major Highlights of the Data Protection Bill Establishment of the Nigerian Data Protection Commission (NDPC) A law is only as effective as its enforcement. This statement is a known fact all over the world. As a matter of fact, lack of proper enforcement led to the NDPR cancellation. The Data Protection Bill made the necessary provisions for its own enforcement. According to Section 7 of the bill, the NDPC is to: 1. Promote awareness of risks to personal data and data protection measures. Including the rights and obligations granted under the Act. 2. Ensure the use of technological and organizational data protection measures. 3. Foster the development of personal data protection technologies in accordance with recognized international good practices and applicable international law. 4. Promote awareness of data controllers and processors’ obligations under the Act. Data Processing Guidelines The guidelines are very straightforward. Data controllers and processors are not allowed to process sensitive personal data themselves or by a third party unless: – The processing is necessary for exercising or performing the rights or obligations of the data controller or the data subject to underemployment, social security laws, or any other similar laws. – The data subject has given and not revoked consent to the processing for the specific purpose or purposes for which it will be processed. – It is necessary to protect the vital interests of the data subject or of another individual where the data subject is physically or legally incapable of giving consent. In the situations above, the Data Protection Bill has the following principles: 1. Data can only be processed for lawful purposes, which must be stated clearly beforehand. 2. The data subject must have consent before to the use of his or her data. Data subjects also have the right to withhold or withdraw consent at any point. 3. The data collected must not be used for any other purpose other than the stated one. 4. For no reason should personal data be stored beyond the necessary timeframe. Also, data subjects can request deletion or destruction of their data by data controllers. 5. All data must be accurate, with inaccuracies corrected immediately. 6. Lastly, the integrity of personal data must be kept with the utmost priority. The NDPC is responsible for enforcing compliance with the rules. Child Consent The data protection bill also caters to the data of all Nigerian children. According to the Bill, a child is an individual under the age of 18. Section 33 of the bill states that “The data controller must obtain the child’s parent or legal guardian before processing personal data.” It also emphasizes the use of government-approved identification documents to prove the child’s age and consent. Although, this does not apply when: 1. Processing is necessary to protect the interests of the child, 2. The processing is for medical or social care purposes by a professional or similar service provider with a duty of confidentiality. Data Protection Impact Assessment Section 28(1) requires data controllers to conduct a DPIA on every project likely to cause high-risk to the rights of data subjects. This is to identify and reduce the risks to data. In the event of identified high risk, controllers are mandated to consult the NDPB. Data Breach Management Data breaches, as a constant threat, have gained the attention of the Nigerian government. So, the bill laid out a proper guide for Its management. The Data Protection Bill mandates data controllers and data processors to keep a record of all personal data breaches. In addition, data controllers are to report every data breach that occurs to the NDPC within 72 hours. However, this timeframe can be extended due to the legal needs of law enforcement. Data Protection Officer and Compliance Services Section 33 of the bill mandates data controllers and processors of “major importance” to have a data protection officer well-versed in the data protection laws and practices.
An Overview of The Nigeria Data Protection Act
On June 12, 2023, the Nigerian government took a bold step towards achieving maximum data protection. While the European Union (EU) was miles ahead, Nigeria began to measure up to the world’s standard. The Nigerian Data Protection Act (NDPA) was that bold step. It was established to provide a legal and comprehensive framework for safeguarding the data of Nigerian citizens, both home and abroad. Prior to this, there have been attempts by the Nigerian government to protect personal data. One notable mention is the NDPR. The NDPR full meaning, Nigerian Data Protection Regulation, was issued in February 2019. It was established by the NITDA (Nigerian Information Technology Development Agency). Putting into consideration the intensity of data threats, regulations like the NDPR are not enough. As a secondary law with a weaker legal and judicial stance, foreign organizations were unable to trust the Nigerian market. This situation birthed the Data Protection Bill,2023 which established the NDPA. This article will provide an overview of the NDPA, its objectives, basic terminologies, scope of application, principles, and penalties. Objectives of the Nigerian Data Protection Act (NDPA) According to Forbes, the world generates 2.5 quintillion bytes of data daily. Why? Data is an important part of any organization’s growth. Companies process data to know what service to promote, which product to make, and, most importantly, digital marketing. For all the positive uses of data, the threats to data are on the increase. Organizations have to implement data protection systems against unauthorized access, loss, or compromise of data. The objectives of the NDPA are: Basic terminologies in NDPA. The Nigerian Data Protection Act has unique terminology. Here are some definitions you should get familiar with. Data controller Is an individual, private entity, public commission, agency, or any other body that, alone or jointly with others, determines the purpose and means of processing data. Data Processor The act describes a data processor as an individual, private entity, public authority, or any other body who processes data on behalf of a data controller or another data processor. Personal data Any information that relates directly or indirectly to an identified or identifiable individual by reference to an identifier, e.g., name, age, identity number, location ID, factors specific to the physical, psychological, cultural, social, or economic state of the individual. Sensitive personal data The act defined sensitive data as personal data relating to an individual’s And other information deemed sensitive by the commission. Scope of Application of the Nigerian Data Protection Act The primary goal of the NDPA is to protect personal data belonging to citizens of Nigeria. Its application extends beyond the borders of Nigeria. The NDPA applies in the following instances where: The Nigerian Data Protection Act does not apply when personal data processing is carried out for personal or household purposes. It is important to know that this exemption is applicable only when the right to privacy of the data subject isn’t violated. In a nutshell, every data controller or processor (home or abroad) processing Nigerian data is subject to the NDPA. Except for personal and household purposes, so far, the rights of the data subjects have been upheld. Basic Principles of the Nigerian Data Protection Act (NDPA) Just like most data protection regulations around the world, the NDPA has principles guiding organizations to compliance. Consent Organizations must get the full consent of the data subjects before collecting, processing, and storing data. The subjects must give consent freely with no trace of foul play. The data subjects also have the right to withdraw their consent. Now data processing is lawful without consent when carried out:
NDPR: An Overview of The Nigeria Data Protection Regulation
Organizations all over the world are facing a great challenge, “how to safeguard data”. The process of safeguarding data, known as data protection, is a delicate one. Companies, small, medium, and large, are exposed to data threats like cyberattacks, accidental loss, and compromise. Where the wrong persons access data, forgeries, targeted attacks, and impersonations are some of the consequences. This pushed countries—Nigeria included—to lay ground rules to guide organizations through protecting the data of their citizens. Examples are the NDPR, GDPR, UK GDPR, etc. In this article, you’ll learn all there is to know about the Nigerian Data Protection Regulation(NDPR) What is the NDPR? The full NDPR meaning is NIGERIAN DATA PROTECTION REGULATION. It is a set of rules guiding the protection of Nigerian data by organizations. The Nigerian Data Protection Regulation has four objectives, which are: Territorial scope of the NDPR Just like most data protection laws, its reach extends beyond Nigerian borders. The NDPR applies to any organization processing the personal data of Nigerian citizens (home or abroad), regardless of its geographical location. For instance, If an organization in the EU wants to process the personal data of a Nigerian citizen, it has to follow the NDPR. When was the NDPR Established? The establishment of the Nigerian Data Protection Regulation occurred in January 2019 by the National Information Technology Development Agency (NITDA). Who Regulates NDPR? In the initial stages, the NITDA was the regulatory body. However, there was a need to create a separate body for the NDPR. The NITDA was stretched beyond what was necessary. The Nigeria Data Protection Bureau (NDPB) was established as the regulatory body. The purposes of NDPB are: Principles of the NDPR The Nigerian Data Protection Regulation has some principles guiding organizations (data controllers) Consent Organizations must get the full consent of the data subjects before collecting, processing, and storing data. The subjects must give consent freely with no trace of foul play. The data subjects also have the right to withdraw their consent. Lawfulness Data can only be collected for lawful purposes. Organizations must clarify the reasons for data collection, processing, and storage. Such purposes should be clearly disclosed to the data subjects. Accuracy Another principle is Accuracy. All the data collected by organizations must be correct. Any inaccuracy should be rectified immediately. Data minimization Data collected can only be processed for the stated purposes. It is unlawful to process data for any reason contradicting the initial purposes. Security Organizations must take specific precautions to ensure data security. This includes measures against unauthorized access, disclosure, loss, and alterations of personal data. Rights of data subjects. Also, the NDPR has provisions for data subjects. Individuals have the clear right to halt the processing of their data. They can also request access, erasure, and correction. Differences between the NDPR and NDPA. NDPA stands for the Nigerian Data Protection Act. Its issuance was in February 2023. The NDPA is the current data protection law in Nigeria. Its issuance did not completely overrule the previous laws—NDPR and the Data Protection Bill. Rather, they were placed under its umbrella. While the NDPA covers most of the NDPR, it lacks the specificity of the latter. The major difference between the two lies in the definition of terms. In summary, the NDPA and NDPR are more similar than different. In times where there is a conflict between the two, the NDPA is supreme. NDPR and GDPR The Nigerian Data Protection Regulation (NDPR) and the General Data Protection Regulation (GDPR) are the regulations for data protection in Nigeria and the EU, respectively. When it comes to it, the penalties are different. Non-compliance with the GDPR comes with a fine of up to 4% of the annual global profit or €20 million, whichever is higher. The NDPR non-compliance penalty is less severe. A fine of up to 2% annual global profit or 10 million Naira, whichever is greater. Nigerian Data Protection Regulation is an adaptation of the GDPR. GDPR is more comprehensive, with a broader scope. In conclusion The Nigerian Data Protection Regulation is important for safeguarding data in Nigeria, and meeting international standards while addressing local needs. Compliance with the NDPR will help organizations avoid penalties and foster trust among the client community. Are you an organization looking to scale up your NDPR and GDPR compliance? You can reach out to us at Johan Consults and be sure to get the best.
