A sudden ₦766 million fine lands in your inbox at 7 a.m. on a Monday morning from the Nigeria Data Protection Commission (NDPC); the body in charge of data protection in Nigeria.
Suddenly, Panic sets in. Customers are calling. Operations start getting stalled. Millions of naira are suddenly at risk.
Before you even understand what went wrong, you’re all over social media and the global news.
This is exactly what happened to Multichoice Nigeria.
What did they do? They processed customer data without proper consent and some of it ended up abroad. A costly oversight no one saw coming.
And here’s the chilling truth: your company could be in the exact same danger right now and without you knowing.
Hackers could be probing your systems. Your company’s sensitive data could be at risk.
And the consequences? They’re not just financial… but what happens next could destroy your reputation overnight. There could be reputational damage, loss of operational licence, and emotional pain. All of which are capable of unraveling your company overnight.
Yet, year after year, so many Nigerian companies keep falling into the same trap.
So why does this keep happening? And more importantly, how can you protect your business before it’s too late?
Let’s get started.
Table of Contents
What mistakes are these companies repeating?
- Thinking Privacy Is “Just IT’s Job”
Most scaling companies think their IT department has their data privacy covered… but what if that assumption is already costing them millions?
They ignore the operational, legal, and board-level priorities.
And the result? Investor money gets exposed. Systems gets vulnerable to data breach attacks.
- Not Understanding What Data Privacy Really Means
You might think you know data privacy but one small mistake could cost millions overnight.
So let me break it down for you.
What is data?
Data is anything that identifies a person (names, emails, phones, health records, biometrics).
And privacy?
It is the right to keep that data safe and free from misuse.
So if you collect data carelessly and you hold people’s secrets in your hands, and you fail to protect them, you will fall into serious trouble just like multi choice Nigeria. You may face lawsuits from customers, investors, fines from the NDPC, and lost trust.
- Ignoring Core Principles
Even if you collect data carefully, missing one critical principle could bring the NDPC knocking on your door tomorrow.
The Nigeria’s Data Protection Act is clear. There are principles you must abide by. You must:
- Process data lawfully, fairly, transparently
- Collect only what’s needed
- Keep it accurate and up to date
- Protect it with strong security
- Delete when no longer needed
If you skip even one of these principles, the NDPC could be knocking on your door before you know it.
- Not Knowing the Laws & Regulators
Many businesses are shocked to learn the NDPC isn’t biased and don’t have favorites. You can ask Multichoice Nigeria.
The law guiding data protection in Nigeria is the Nigeria Data Protection Act (NDPA).
Once you violate any of the rules in the NDPA, the NDPC will come knocking. They can audit you. Fine you at least ₦10 million or 2% of turnover. Publish your name. And worse still, suspend your processing rights.
Also Read: The Nigerian Data Protection Commission (NDPC)
And ignorance? It won’t save you.
- Overlooking Data Subject Rights
Do you know that every Nigerian citizen aside from the usual right to life and own property that you know in the 1999 constitution, right to privacy is one of it and guess what? Their right to privacy covers their data too! Many Nigerian companies do not know this. Hence, the reasons for their repeated fallouts.
As a Nigerian, they have the rights to:
- Know what you hold
- Correct or delete errors
- Block or restrict usage
- Refuse marketing
- Complain to the NDPC
If you ignore these right, you’ll setting up yourself for lawsuits, fines, and public scrutiny.
- Skipping DPIAs (Data Protection Impact Assessments)
Every product launch could be a ticking time bomb if you skip this step. Are you ready for what could go wrong?
Many tech companies launch new products fast every year. Of course, it’s the prove that the company is growing only to face disasters they never saw coming.
What did they do wrong? They failed to run DPIAs. What are the DPIAs?
A DPIA is your test drive: it spots risks before launch, especially for sensitive data.
Many companies skip this test, launching new products without checking for potential data breach risks. At the end, the risks ends up in data breach with unwanted fines and lawsuits.
Could your next product launch be a disaster waiting to happen? You can only find out when you conduct DPIA.
- Having No Data Protection Officer
Some companies don’t even understand who a DPO is and what roles they play in a company.
A qualified DPO ensures all data activities are compliant. Without one, you risk fines and chaos when a leak inevitably occurs.
What’s more? You’re required by the law to hire a data protection officer if you process sensitive data often.
And when you disobey the law? What happens? You guessed right. Penalties!
- No Breach Response Plan
A breach suddenly happens. Then what next?
You have 72 hours to report it. But what happens when the company has no plan?
Panic sets in with chaos all over the place. Reputation gets ruined after lawsuits and negative news all over broadcast stations and social media. Five years of hard work can disappear overnight.
- Not Training Your Staff
Your staff can be your strongest shield or the reason data ends up in the wrong hands.
It depends on which side of the divide you choose with your actions or inactions
Untrained employees can leave passwords exposed, fall for phishing, and ignore online security.
No fancy policies will be able to save you from human error.
What Every Company Must Do
Now that you know the possible mistakes, what can you do to avoid falling into the same situation as Multichoice Nigeria?
✓ Draft clear privacy & cookie policies, and consent forms
✓ Run DPIAs for risky processing
✓ Appoint a qualified DPO
✓ Sign solid Data Processing Agreements
✓ Have a breach plan and stick to the 72-hour rule
✓ Control cross-border data legally
✓ Train staff regularly
What Happens If You Don’t
Now if you fail to comply with the above tips and requirements, just like Multichoice Nigeria, you risk any of the following:
- NDPC audits & fines
- ₦10 million or 2% of revenue lost
- Suspension of data processing rights
- Public naming & shaming
- Lawsuits by customers
Ignore these, and your company could be the next Multichoice or worse.
The Hard Truth
Data breaches are terrifying. Losing customer trust, seeing investors panic, and facing regulatory scrutiny overnight is emotionally crippling.
Yet the same mistakes keep happening… because most companies don’t have a trusted legal partner to guide them.
At Charis Legal Practice, we help companies with share capital above ₦10 million, tech companies, unlimited liability firms, and scaling brands stay bulletproof, avoid fines, and expand with confidence.
Ready to close the gaps? Click here to book a consultation session today.
If you have any questions, you can drop them in the comments section. We will be glad to answer them. Happy reading!
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