Why This Law Affects Your Business
The Nigeria Data Protection Act for Businesses has made one thing clear: data protection isn’t just a big-company concern anymore. With the Nigeria Data Protection Act (NDPA) 2023 now in effect, every organization that handles personal information—no matter the size—has legal responsibilities. This includes businesses managing customer details, staff records, marketing databases, and contact information collected through online forms and support channels, all of which fall under the Nigeria Data Protection Act for Businesses.
Whether you’re running a growing startup, an NGO, or a small business with a digital presence, this guide explains what the Nigeria Data Protection Act for Businesses means for you and the steps you can take to meet its requirements clearly and practically.
I. You Need to Get Clear Consent
Clear, informed consent is your starting point.
Under the NDPA, you need to ask people for consent (permission) before collecting or using their data. That consent has to be clear, informed, and freely given. A simple checkbox with a clear explanation works. This excludes methods such as pre-ticked boxes or hiding consent in lengthy terms and conditions, as those approaches don’t meet the NDPA’s standards.
So if you’re collecting emails for a newsletter, running a promo sign-up form, or using cookies on your website, now’s the time to check that your language complies with the Nigeria Data Protection Act for Businesses — plain, direct, and gives people real choice based on a clear understanding of what you’re collecting and how you’ll use it. Read more about user rights and transparency under the NDPA.
II. Customers Can Ask About Their Data — And You’ll Need to Respond
Be prepared to handle data requests professionally and in a timely manner.
People can now request to see the personal data you hold about them. They can ask you to delete it, fix errors, restrict how you use it, or even stop using it for marketing. These are referred to as data subject rights, and the NDPA states that businesses must respect them.
If someone emails or calls you with this kind of request, you’ll need to act fast. Your team should be aware of how to handle it, and the Nigeria Data Protection Act for Businesses allows you up to 30 days to respond. That means having a basic system in place, even if it’s just a simple log or template.
Learn more about how the NDPC protects data subject rights.
III. You Might Need a Data Protection Officer
Someone in your organization should be responsible for overseeing data privacy compliance.
The term might sound formal, but the role is manageable and essential. A Data Protection Officer (DPO) is someone in your business or an external consultant who oversees how personal data is handled.
You’re more likely to need a DPO if your business works with a lot of data, collects sensitive information like health records, financial details, or biometric data, or monitors users’ behavior. This person ensures you’re following the rules, advises your team, and serves as your liaison to the NDPC. For many small businesses, this can be an existing staff member with the proper training or an affordable external consultant. What matters is having someone responsible and informed.
Understand when a DPO is required and how they help with compliance.
IV. Your Vendors Matter Too
If they handle your data, their compliance standards affect you.
Many businesses use platforms like Mailchimp for email campaigns, Zoho as a CRM, or Google Drive for document storage. These tools all process your customers’ data. Under the NDPA, you’re still accountable for how that data is handled.
That’s why it’s important to work only with vendors that follow good data protection practices. Ask if they’re compliant with NDPA or GDPR. Look for a signed Data Processing Agreement (DPA). If a vendor won’t commit to protecting your customer’s info, it’s a red flag.
Explore the essentials of vendor compliance under Nigerian data law.
V. If You’re Sending Data Abroad, You Need a Plan
International data transfers come with extra responsibilities.
Many of the tools Nigerian businesses use store data outside the country. That’s fine as long as certain safeguards are in place. The NDPA requires that:
- The destination country has an adequate level of data protection (as determined by the NDPC)
- You’ve implemented safeguards like NDPC-approved Standard Contractual Clauses (SCCs)
- You’ve got the user’s permission, in some cases
So before using a new app or cloud service, ask: where’s the data going, and is it protected?
Review cross-border requirements on the European Commission’s SCC page.
VI. Data Breach? You Have 72 Hours
Act fast: you have a limited window to report and respond.
No one wants to deal with a data breach. However, if it does happen, the NDPA provides you with a short timeline. You’ll need to notify the Nigeria Data Protection Commission (NDPC) within 72 hours of becoming aware of the breach and, if applicable, inform the affected users as well.
To be ready, every business should have a simple checklist: what was breached, how did it happen, what did we do, who was affected, and who needs to be notified (internally/externally)? Even a basic incident plan can make a huge difference in how fast you recover and avoid fines.
Check global breach notification practices at DLA Piper’s Data Protection site.
VII. Ignoring the Law Can Cost You
Non-compliance can result in fines, audits, and reputational damage.
The penalties for non-compliance aren’t just theoretical. Businesses can face real consequences: fines based on annual revenue (potentially up to 2% of annual gross revenue!), audits, damage to your brand, and even legal action. This isn’t something to leave for later. If you’re serious about building trust and protecting your business, now’s the time to act.
Read how other businesses are managing NDPA risks effectively.
VIII. Where to Begin (Without Getting Overwhelmed)
Start small, stay consistent, and build momentum.
Start with the basics:
- Take stock of what data you’re collecting, where it’s stored, and who has access
- Review how you ask for consent and update it if needed
- Look at your vendors and make sure they’re aligned with NDPA standards
You don’t need to do it all at once, but you do need to start. Break it down, assign responsibility, and build from there.
Need a Partner to Help You Get It Right?
At PlanetWeb, we help Nigerian businesses simplify compliance without stress. From policy audits to vendor reviews, we guide you through the NDPA in a way that makes sense.
- Explore our NDPA compliance checklist.
- Read our law summary.
- Sign up for our newsletter to stay in the loop.
This isn’t just about following the rules. It’s about running a business your customers feel safe with.
