The Federal Government of Nigeria, through the National Data Protection Commission, has imposed a fine of N555.8 million on Fidelity Bank for violating customer data protection laws.
Vincent Olatunji, the National Commissioner of the Data Protection Commission, made this announcement during the Validation Workshop on the Nigeria Data Protection Act General Application and Implementation Directive held in Abuja on Wednesday.
Olatunji explained that Fidelity Bank’s breach of the National Data Protection Act (NDP Act) 2023 and the Nigeria Data Protection Regulation (NDPR) 2019 led to the hefty fine. The penalty, which amounts to 0.1% of the bank’s annual gross revenue for 2023, marks the highest fine ever levied by the commission.
“Data protection compliance is crucial, and we have made it clear that non-compliance will be penalized,” Olatunji stated. “Our penalties range from N10 million to up to two percent of gross earnings from the previous year.“
Olatunji emphasized that the commission’s approach has primarily focused on raising awareness and educating organizations about their responsibilities. However, in Fidelity Bank’s case, the breach’s severity, the impact on affected data subjects, and the bank’s lack of cooperation led to the decision to impose the total penalty.
“Since we began our investigation in April 2023, we noticed serious breaches. Despite working closely with the bank, they became uncooperative, and we were left with no choice but to enforce the maximum penalty,” Olatunji added.
One of Nigeria’s most prominent opposition politicians is a majority shareholder of the bank. Some analysts will certainly read political motives into the extreme measure.
The bank has not responded whether it intends to challenge the penalty in court or simply comply, but it has 14 days maximum to pay.
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