President Bola Tinubu recently signed the Nigeria Data Protection Bill, 2023 into law, creating excitement among data and technology experts who anticipate a surge in investment similar to other countries with comparable legislation.
This new law establishes the Nigeria Data Protection Commission, replacing the NDPB established by former President Buhari in February 2022. The commission will be led by a National Commissioner responsible for overseeing the processing of personal information.
Since the enactment of this law, optimistic forecasts have emerged, suggesting that it has the potential to triple the industry's current value of over N5.5 billion, potentially reaching a valuation of over N16 billion in the near future.
Former Minister of Communications and Digital Economy, Professor Isa Pantami, recently stated that Nigeria's Data Protection Sector market value stands at N5.5 billion and predicted a significant increase once the data protection law takes effect.
Pantami believes that the law will instil confidence in foreign investors, encouraging them to engage in business activities in Nigeria.
Pantami said: “The Data Protection Bureau created many jobs in 2022. The value of the sector today is around 5.5 billion naira and could triple if a full law comes into effect.
It is a global best practice to have a data protection law in place; otherwise, you will find it difficult to attract interventions that are of benefit to your country.
Secondly, even potential investors today may ask questions whether you have data protection laws in your country or not; if you don’t have any data protection law in place, they will feel uncomfortable coming to invest in that country, because today, data is critical”, he added.
Additionally, Pantami's perspective is not unique in this regard. All the experts interviewed by Hitech magazine perceive this action as a positive development, citing its potential to enhance market confidence.
According to Davidson Oturu, a technology lawyer and the Managing Partner at Nubia Capital, an investor in technology companies, the laws will play a vital role in establishing market confidence, especially considering the expansion of data-driven businesses in areas such as financial technology, e-commerce, and other online services.
“For instance, we saw a situation where following Kenya’s introduction of its Data Protection Act, Amazon Web Services, AWS, announced new investments in the country, including establishing part of its data cloud infrastructure in Nairobi.
“There were indications that the data protection law was what spurred AWS to invest in the country as it had been waiting for about seven years for the passage of such a law that would boost its confidence.
“The law can also assure the citizens and investors that the government will not exploit their personal information for unauthorised profiling, spying, or other forms of discrimination.
“With market confidence, will come trust, especially as some consumers may have lost faith in the ability of the government to protect their data following the recent surge of privacy infractions and data breaches by large internet companies and loan apps.
“Therefore, consumers may be more willing to participate in online activities like e-commerce, digital transactions, and online services when they have confidence that their data will be protected, which can help the economy,” Oturu stated.
In commenting on the provisions of the law, Oturu said: “Some of the provisions of the law include the fact that before organisations transfer personal data, they have to comply with certain provisions or risk sanctions.
“In terms of penalties, there are fines introduced and where someone’s personal data is infringed and used for profiting, the aggrieved person can get part of the profits made from the infringement.
“This would definitely work in situations where we see some of these loan sharks and other players who manipulate data and carry out unethical activities.
“Furthermore, at a time when artificial intelligence, AI, is on the rise with its potential for data manipulation and deep fakes, having strong data protection laws will be crucial for responsible AI development and deployment as it will uphold ethical principles, preserves privacy, ensures compliance with regulations, fosters trust, and mitigates risks associated with data use,” he added
Chief Revenue and Data Officer of Enterprise Business Information Systems, Wale Awosokanre, expressed his views by highlighting the significance of data as a valuable asset that can be monetized through effective management and dissemination.
Awosokanre emphasized that the implementation of the data protection law would enable the government to ensure proper control and regulation of data usage, leading to positive economic impacts for Nigeria.
According to Wale, “Till date, data is sometimes used to the disadvantage of the owner, which creates a negative view of Nigeria and impacts investments coming into the country; if we are able to reverse this, then positive investments can be attracted into Nigeria.”
Nonetheless, Awosokanre expressed apprehension regarding the effective execution of the legislation, emphasizing that without proper implementation, any law remains mere words on a page.
He posed several inquiries, such as how to guarantee compliance and what measures or mechanisms would be established to ensure strict adherence to the law and competent management of the Data Commission.
In the meantime, Gbenga Sesan, the Executive Director of Paradigm Initiative, emphasizes the urgent need for the Nigeria Data Protection Commission to initiate a comprehensive campaign of education and awareness targeting both citizens and data handlers. The aim is to ensure that everyone is well-informed about their rights and responsibilities in relation to data protection.
“One of the challenges that this new law has immediately addressed is the need for an independent data protection regulatory agency because it is the right way to do it and also because all violators must be checked, including government agencies themselves.
“The independence will not come easy though, the Commission must defend it, especially considering the contradictory Section 55 of the Act that gives the Minister power to dictate to the Independent Commission,” he advised.
The implementation of the Data Protection Act in Nigeria presents significant opportunities for the country's economy.
With the potential to triple the market value of the data protection sector, Nigeria stands to make over N16 billion in the near future.
The new law, coupled with increased market confidence and the attraction of foreign investments, is set to bring about positive transformations in data-driven industries such as fintech, e-commerce, and online services.
However, the successful realization of these benefits relies heavily on effective implementation, compliance, and widespread education and awareness campaigns. By leveraging the power of data and ensuring its proper management, Nigeria can pave the way for economic growth, innovation, and increased privacy protection for its citizens.
0 Comment(s)
SPONSORED
HEADLINE
TRENDING