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At Oluwadamilola Sodipo & Co., we understand that data is the lifeblood of modern business. How organisations collect, store, share, and secure personal information directly affects legal compliance, customer trust, and corporate reputation.
In today’s digital economy, transparency is no longer optional—it is a competitive advantage. A clear and well-structured privacy policy demonstrates accountability and protects businesses from regulatory penalties and disputes.
What Is a Privacy Policy and Why Is It Important?
A privacy policy is a public-facing document that explains:
- What personal data you collect
- Why you collect it
- How the data is used
- Who it is shared with
- How individuals can exercise their rights
For Nigerian businesses, this is not merely best practice—it is a legal requirement under Nigeria’s evolving data protection framework, including the Nigeria Data Protection Act (NDPA) and related regulations.
A compliant privacy policy helps to:
- Build user and customer trust
- Support investor and partner due diligence
- Reduce regulatory and litigation risk
- Promote sound corporate governance
Key Elements Every Privacy Policy Should Contain
Many businesses shy away from privacy documentation due to perceived legal complexity. However, an effective privacy policy should be clear, concise, and understandable to both users and regulators.
At a minimum, it should address the following:
1. Types of Data Collected
Your privacy policy should clearly distinguish between:
- Personally identifiable information (such as names, addresses, phone numbers, email addresses, and identification details)
- Non-personal or anonymised data
- Sensitive personal data, where applicable
Nigerian law requires organisations to collect only data that is necessary, lawful, and relevant to their operations.
2. Purpose of Data Collection and Use
Businesses must clearly explain why personal data is collected.
Common lawful purposes include:
- Service delivery
- Customer support
- Marketing communications (with consent)
- Transaction and payment processing
Personal data must not be used for unrelated purposes without obtaining additional consent.
3. Data Storage, Processing, and Transfers
A compliant privacy policy should disclose:
- Where personal data is stored
- Whether third-party processors are engaged
- Whether data is transferred outside Nigeria
- The security safeguards in place
With regulators increasingly focused on data sovereignty and cross-border transfers, transparency in this area is essential.
4. Rights of Data Subjects
Individuals whose personal data is processed must be informed of their rights, including:
- The right to give or withdraw consent
- The right to access personal data
- The right to request correction or deletion
- The right to lodge complaints with relevant authorities
Where there is no legal basis for continued retention, data must be deleted upon request.
5. Contact Details and Data Protection Officer (DPO)
Businesses operating in Nigeria are expected to designate a Data Protection Officer (DPO). This may be:
- An in-house staff member
- An external consultant
- A licensed data protection compliance organisation
Your privacy policy must clearly provide contact details for privacy-related enquiries and complaints.
Keeping Your Privacy Policy Up to Date
A privacy policy is a living document. It should be reviewed and updated whenever your business model or data practices change, including when you:
- Launch new features or services
- Onboard new partners or data processors
- Expand into additional jurisdictions
- Change account management or data retention practices
Importantly, your actual data practices must always align with what your privacy policy states.
Should You Use Online Templates or AI-Generated Policies?
While templates and AI-generated policies are widely available, they often fail to reflect:
- Nigerian legal requirements
- Industry-specific obligations
- The realities of your business operations
Because data protection laws are jurisdiction-specific, businesses are strongly advised to seek legal guidance when drafting or reviewing privacy policies to avoid unintended non-compliance.
The Human Element: Training Your Team
Compliance goes beyond documentation. Employees—particularly developers, customer support staff, and sales teams—must understand:
- Internal data handling procedures
- Confidentiality obligations
- Consequences of data breaches
A privacy policy is only effective when the people implementing it are properly informed and trained.
Regulatory Spotlight: Recent Nigerian Enforcement Actions
Recent developments highlight Nigeria’s growing commitment to digital and data regulation.
A Federal High Court in Lagos recently issued a temporary restraining order against the enforcement of a ₦60 billion fine imposed on Facebook by the Advertising Regulatory Council of Nigeria (ARCON), pending the determination of the case.
Separately, Meta and WhatsApp are contesting a $220 million fine issued by the Federal Competition and Consumer Protection Commission (FCCPC) in relation to alleged data protection and competition concerns.
These developments underscore one key point: data protection and digital market regulation in Nigeria are being actively enforced.
How We Can Assist
At Oluwadamilola Sodipo & Co., we provide comprehensive advisory and compliance services, including:
- Drafting privacy policies and terms of service
- NDPA and NDPR compliance support
- Appointment and outsourcing of Data Protection Officers
- Data breach advisory and response
- Regulatory representation and filings
- Staff data protection training
If your business requires guidance tailored to its operations and risk profile, our data protection and compliance team will be pleased to assist.