The Nigeria Data Protection Commission (NDPC) has imposed a fine of ₦555,800,000 (Five Hundred and Fifty-Five Million Eight Hundred Thousand Naira) on Fidelity Bank PLC. This fine represents 0.1% of the bank’s annual gross revenue for 2023 and must be paid within 14 days upon receipt of the notice.
The penalty follows an investigation by the Commission into violations of the Nigeria Data Protection Act, 2023, and the Nigeria Data Protection Regulation, 2019. The investigation was triggered by a complaint lodged in April 2023 by a data subject who alleged that their personal data was collected without a lawful basis for the purpose of opening an account.
Upon reviewing Fidelity Bank’s data processing practices, the Commission found that the bank had, in several critical instances, processed personal data without the informed consent of the data subjects. This included the use of data processing tools such as cookies and banking apps, which were deployed in violation of the NDP Act. At the time of the investigation, Fidelity Bank’s app had been downloaded over one million times.
Furthermore, the Commission discovered that the bank relied on non-compliant third-party data processors. According to the law, organizations must ensure that their vendors, agents, or contractors are also compliant when handling personal data.
The initial decision by the Commission was issued in July 2023, with a directive to pay a remedial fee in December 2023. Despite over ten correspondences and repeated warnings, Fidelity Bank failed to provide a satisfactory remedial plan over the course of more than a year.
Dr. Vincent Olatunji, the National Commissioner and CEO of the NDPC, urged Data Controllers and Data Processors to adhere strictly to data protection laws. He emphasized that non-compliance undermines trust and confidence in Nigeria’s capacity to protect data, which is crucial for economic growth. Compliance with these laws is essential for protecting the freedoms, lives, and livelihoods of individuals, and will help foster sustainable development in Nigeria.
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