NDPC plays hardball

Nigeria’s Data Protection Commission (NDPC) is on the lookout for some unlucky scapegoats—1,369 of them to be precise. According to a statement on Monday, the country’s data protection watchdog has commenced a probe into 1,369 Nigerian companies over suspected violations of data privacy regulations. 

ICYMI: The Nigeria Data Protection Act (NDPA) was enacted in 2023 to safeguard Nigeria’s data sovereignty. For the past two years, the NDPC has been patient with violators, using a ‘remediation’ approach to warn companies of violations instead of abruptly imposing penalties. But in July, things changed. It slammed MultiChoice, the pay TV giant, with a ₦766.2 million fine ($498,000) for violations after repeated warnings. 

State of play: The targeted companies in the latest regulatory clampdown include 795 financial institutions, 392 insurance brokers, 35 insurance companies, 10 pension companies, and 136 gaming firms. NDPC is giving them three weeks to prove they have appointed Data Protection Officers, filed their 2024 compliance audits, and implemented proper data protection measures. Companies that fail this test will likely join MultiChoice in learning expensive lessons about regulatory compliance. 

Zoom out: The mass investigation shows NDPC’s move into serious enforcement with real financial consequences. The NDPC believes that responsible use of personal data is vital to ensure the country can become a digital economy leader in regional and global markets. All eyes will be on whether this move genuinely improves compliance or just becomes another excuse for regulators to squeeze more money through questionable fines. 

Premium Trust Bank, a Nigerian mid-tier lender launched in 2022, has raised ₦200 billion ($131 million) in line with the Central Bank’s capital requirement for national banks. The lender pulled this off with seven months to spare, joining the likes of fellow mid-tier banks Wema and Stanbic IBTC, which have also raised the sum.

How did Premium Trust Bank pull it off? It raised the funds through a mix of rights issue—new shares are sold to existing shareholders—and private placements, selling shares directly to select investors instead of the public.

Catch up: In 2024, Nigeria’s Central Bank announced a recapitalisation exercise requiring international banks to raise a minimum of ₦500 billion ($328 million), national banks to raise ₦200 billion ($131 million), and regional banks to raise ₦50 billion ($33 million), in a bid to strengthen the banking sector.

Between the lines: So far, only Access Bank and Zenith Bank have successfully raised the required capital among the tier-1 lenders. GTBank is preparing another round of capital raise following its dual listing on the London Stock Exchange (LSE). UBA is currently raising additional funds, while First Bank is expected to finalise its recapitalisation exercise before the deadline.

State of play: Since its launch, Premium Trust Bank has been aggressively expanding, opening 26 branches across 14 Nigerian states. It has plans to move into the Southeast while also doubling down on its small and medium enterprise (SME) banking strategy.

The bank is also dealing with controversy: it is currently in court after a staff member and external collaborators allegedly conspired to steal $10,000 from a customer account.

Nigeria’s tax system is entering a digital chapter, and DigiTax, a Kenyan e-invoicing and tax compliance startup, wants to be at the centre of it. 

Nigeria’s taxman, the Federal Inland Revenue Service (FIRS), has now cleared the platform as an Access Point Provider (APP) and System Integrator (SI) for its e-invoicing system under the newly launched e-invoicing solution, the Merchant Buyer Solution (MBS) platform.

Translation: DigiTax can now connect companies directly to the new government-backed e-invoicing structure.

What exactly is DigiTax? With operating licenses in Kenya and Zambia, DigiTax validates invoices in real-time and keeps them in line with FIRS regulations, while protecting sensitive financial data. The platform already supports over 800 businesses across Africa, helping process invoices worth more than $10 billion. The platform has built a reputation as the compliance partner for companies juggling complex financial systems. And now, it’s bringing that playbook to Nigeria, with Olumide Akinsola leading the charge as the country director.

The resume: With nearly 20 years of experience in growing and scaling tech businesses across Africa, Olumide Akinsola will be steering DigiTax’s Nigerian operations. He is notable for helping build the ticketing platform, QuickBus, up until its acquisition in April 2024.

Why should you care? Tax compliance is no longer optional. By plugging directly into FIRS’ system, DigiTax could cut out manual errors and delays that cost businesses time and revenue. It’s a win-win for both sides of the tax table if this works out as promised.

Here’s the tea☕: Last week, the country’s council of ministers approved a new cybercrime Bill presented by the Ministry of Communications and Technology.

What’s inside this bill? This bill targets the unlawful use of computer systems, hacking, fraud, and shady online activities. It also includes penalties for breaking such laws and gives law enforcement a proper legal framework to track and prosecute offenders.

Why now? With over 5 million internet users as of 2024, Somalia’s internet penetration rate has contributed to the rise in its cyber-related crimes. The first quarter of 2024 saw a 27% jump in piracy from the previous year. In June, a report by the International Criminal Police Organisation (INTERPOL) revealed that cybercrime accounted for over 30% of reported crime in Western and Eastern Africa. Somalia is trying to keep pace with global digital governance while building its own home capacity.

This bill comes after Somalia signed two agreements with the Malaysian Communications and Multimedia Commission and Cyber Security Malaysia. These deals focus on joint efforts to improve digital regulations and tackle cybercrime. 

With this bill, Somalia is saying: no more free pass for hackers or fraudsters. It signals the country’s readiness for growth in its digital economy. How well this bill will be enforced is still a test for Somalia— drafting rules is one thing, but implementing them is another.