States risk losing investors over weak data protection — NDPC

States that neglect robust data protection and privacy measures may experience a decline in investor trust and an influx of investment opportunities, as the digital economy becomes more prevalent, warns the Nigeria Data Protection Commission (NDPC). Vincent Olatunji, the National Commissioner and CEO of the NDPC, emphasized that robust data protection could bolster a state's credibility, foster public confidence, and make it more appealing to foreign investors.

Speaking at a data privacy implementation workshop for state governments, Olatunji stressed that the surge in the movement of personal and commercial information across borders has made data protection a crucial factor for businesses seeking investment or partnerships. He stated, "A lot of countries that don’t have your data protection law, no party is ready to do business with you.

Because if there's possible to transfer data, how are they going to ensure that data is in Nigeria?" Effective implementation of the Nigeria Data Protection Act at the state level, according to Olatunji, would strengthen credibility, public confidence, and investment prospects. The NDPC boss also urged state governments to shift from mere discussions and establish frameworks, policies, and institutional structures for implementing the national law rather than creating separate state data protection laws.

He pointed out that states serve as significant data controllers, as their ministries, departments, and agencies amass vast amounts of information while delivering public services and employing workers. Olatunji commended the growth of Nigeria's privacy ecosystem, which now comprises over 38,000 registered organizations and 346 licensed data protection compliance organizations, with the workforce in this sector expanding from less than 1,000 to over 27,000 in three years.

Meanwhile, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, cautioned that inadequate privacy protection could impede investment growth and Nigeria's digital development. Tijani emphasized that public and investor confidence forms the foundation of a competitive digital economy. He highlighted that the Nigeria Data Protection Act 2023 and the General Application and Implementation Directive 2025 constitute the legal framework for data governance across various government levels.

The NGF-NDPC partnership aims to provide states with a unified implementation platform, enhance institutional understanding, and promote uniform compliance.