GROWING CONCERNS ABOUT DATA PRIVACY AND SECURITY ARE NOW EMERGING AS MAJOR OBSTACLES TO NIGERIA’S PUSH FOR FINANCIAL INCLUSION, DESPITE YEARS OF INVESTMENT IN DIGITAL INFRASTRUCTURE AND CONNECTIVITY.
While efforts have long focused on expanding broadband, increasing mobile access, and fostering fintech innovation, experts now emphasize that trust — especially regarding how personal data is collected, stored, and used — could be the key factor in whether millions of Nigerians adopt formal financial services.
The Central Bank of Nigeria, in 2012, aimed to cut the country’s adult financial exclusion rate to 20 per cent by 2020 under its National Financial Inclusion Strategy. Yet, reports from 2022 reveal that the exclusion rate remained at 36 per cent in 2020, highlighting ongoing gaps in access and adoption.
Industry leaders now argue that infrastructure alone is no longer the main hurdle.
“Increasing connectivity is important, but it is only the first step,” said Uchenna Agbo, Chief Commercial Officer at Optasia. “Real inclusion requires active participation, and that participation depends heavily on trust.”
In major commercial centers like Balogun Market, traders who predominantly use cash are still hesitant to embrace digital financial services. Many have mobile phones and are familiar with mobile money platforms, but fears of fraud, account hacking, and misuse of personal information continue to limit adoption.
Incidents of compromised accounts and data leaks have been widely reported, reinforcing apprehension among small business owners who fear that using digital financial systems could expose sensitive personal and financial data.
For low-income earners, privacy concerns are not abstract regulatory matters but tangible threats to their livelihoods.
The issue has gained further attention following the Nigeria Data Protection Act and the creation of the Nigeria Data Protection Commission, tasked with enforcing data protection standards and promoting responsible handling of data across sectors.
Analysts stress that while regulations are important, they are not enough. Financial service providers must integrate privacy protections directly into the design of their products — an approach often called “privacy-by-design.”
“Data privacy should not be treated merely as a compliance requirement or a technical add-on,” Agbo said. “It must be regarded as core infrastructure, as essential as the networks and platforms that deliver the services.”
Optasia, which operates in 38 countries and serves over 120 million active users monthly, highlights that trust directly affects digital adoption, especially among underbanked populations.
Consumer advocates point out that for lower-income users, breaches of privacy can have serious consequences. Misuse of biometric data, unauthorized sharing of financial histories, or predatory lending driven by data analytics can erode confidence and discourage people from joining formal financial systems.
