Nigeria's Reps Propose N500m Fine for Data Violations

A bill currently before the House of Representatives in Nigeria proposes severe penalties for unauthorized transfers of strategic payment transaction data outside the country. Sponsored by Lanre Okunlola (Rep, Surulere Ii), the bill suggests a 10-year prison term and a minimum fine of N500 million for individuals who violate this regulation.

Additionally, financial institutions, including banks and fintech companies, would be required to store their primary payment data infrastructure within Nigeria, facing fines of at least N1 billion for non-compliance. The proposed legislation aims to establish the National Payment Data Protection and Sovereignty Commission, which would oversee the protection and regulation of payment transaction data.

The bill, introduced during a plenary session last week, is set to be debated by lawmakers in the coming weeks. It emphasizes the importance of local data storage and processing, declaring all payment transaction data generated in Nigeria as a "Strategic National Economic and Security Asset.".