Nigeria Boosts Data Protection For SMEs

Na'ankwat Dariem

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The Nigeria Data Protection Commission (NDPC) signed a Memorandum of Understanding (MOU) with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to drive data privacy and protection compliance in the small and medium business ecosystem in the country.

This will also raise awareness and drive sensitization on the responsible use of data and the implementation of the Nigeria Data Protection Act 2023 among SMEs.

It is expected that the Act will boost the confidence of all Nigerian citizens and residents to fully support the country’s digital economy.

 

The MoU was signed by the National Commissioner of the NDPC, Dr. Vincent Olatunji, and the Director General of SMEDAN, Mr. Charles Odii, on behalf of the two federal government agencies in Abuja, Nigeria’s capital.

According to the National Bureau of Statistics, SMEs contribute about 48% of Nigeria’s GDP, making them a critical driver of economic growth and development. SMEs also account for 96% of businesses and 84% of employment. It is projected that SMEs will contribute 49.5% to Nigeria’s GDP in 2024, which is an indication that Nigerian SMEs are in for another impactful year.

To this end, the NDPC boss, Dr. Olatunji, underscored the vital role SMEs play in revitalising the Nigerian economy, which he said aligns with President Bola Ahmed Tinubu’s Renewed Hope agenda, which focuses on growth-oriented economic reforms.

According to him, data provides diverse opportunities for driving efficiency, improving productivity, and accelerating growth for SMEs, hence the need to create awareness to enable them to be proactive as well as seize the opportunities to boost their businesses.

On his part, the DG of SMEDAN, Charles Odii, expressed appreciation to Dr. Olatunji for the NDPC’s readiness to collaborate.

He emphasised the significance of data protection and complying with the Nigeria Data Protection Act, 2023, in preparing for international business.

Mr. Odii noted that this MOU is among the top 10 signed by SMEDAN, adding that his agency aims to guide SMEs in data protection and lead them in the right direction.

With the MoU in place, a working group was established to kick-start the partnership, focusing on capacity-building in data protection to educate SMEs on taking appropriate measures in this regard.

The partnership would also help SMEs deal with the challenges and keep up with the evolving and diverse data protection and privacy regulations across different jurisdictions and sectors, as well as their ability to make effective data-driven decisions.

The Nigeria Data Protection Act 2023 established the Nigeria Data Protection Commission, which is an independent body that governs data protection and regulation in the country.

In addition to defining sensitive personal data as including an individual’s genetic and biometric data as well as their race, ethnicity, and health status, among other things, the act also provides specific grounds for the processing of this sensitive personal data.

According to the act, such data can be processed where consent is provided or where processing is necessary for social security or employment laws.

 

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