Following investigations into violations of the Nigeria Data Protection Act of 2023 and the Nigeria Data Protection Regulation of 2019, the Nigeria Data Protection Commission has ordered Fidelity Bank PLC to pay a fine of N555,800,000 (five hundred and fifty-five million, eight hundred thousand naira) within 14 days of receiving the notice.
This amount represents 0.1 per cent of the bank’s annual gross revenue in 2023.
The investigation into the data processing activities of Fidelity Bank PLC was initiated by a complaint from an individual whose personal data was collected without proper authorisation for opening an account. This complaint was filed with the commission in April 2023.
The commission discovered that Fidelity Bank processed personal data without informed consent in certain critical cases. Data processing tools such as cookies and banking apps were used in violation of the NDP Act. Additionally, the bank’s banking App had been downloaded over one million times.
Aside from internal non-compliance, the bank also relied on non-compliant third-party data processors. The law not only requires an organisation to be compliant but also mandates its relevant vendors, agents, or contractors to be accountable when handling personal data.
The commission’s initial decision was issued in July 2023 and a directive to pay the remedial fee was issued in December 2023. Despite repeated warnings and opportunities for accountability over a year, Fidelity Bank did not provide a satisfactory remedial plan.
The national commissioner of the Nigeria Data Protection Commission, Dr. Vincent Olatunji urged data controllers and data processors to avoid actions that may undermine trust and confidence in Nigeria’s ability to protect data-driven decisions and transactions. He emphasised that without demonstrable assurance of accountability in the exchange of goods and services, economic growth would be severely hindered.
In addition, a statement by the commission’s head of legal enforcement and regulations, Babatunde Bamigboye pointed out that compliance with laws protecting individuals’ freedoms, lives and livelihoods will lead to more momentum for sustainable development in Nigeria.
