Data privacy concerns are emerging as a critical obstacle to Nigeria’s financial inclusion goals, shifting the challenge from digital infrastructure to public trust. Despite significant investments in connectivity and fintech, doubts over the security of personal information are preventing widespread adoption of formal financial services.
The Central Bank of Nigeria’s 2020 target to reduce financial exclusion to 20% was missed, with the adult exclusion rate remaining at 36% in 2020. Industry leaders now assert that the principal barrier is no longer a lack of access but a lack of confidence. Uchenna Agbo, Chief Commercial Officer at Optasia, stated, “True inclusion requires meaningful participation, and that depends on trust. Increasing connectivity is essential, but it is only a prerequisite.”
In commercial hubs like Lagos’s Balogun Market, traders often own mobile phones and are aware of digital platforms but remain hesitant due to fears of fraud, account hacking, and misuse of biometric or financial data. Stories of compromised accounts reinforce the perception that digital systems pose a tangible threat to livelihoods, particularly for low-income earners.
This concern has amplified following the introduction of the Nigeria Data Protection Act and the operational Nigeria Data Protection Commission. While experts welcome the regulatory framework, they caution that enforcement alone is insufficient. Financial service providers are urged to integrate privacy protections into product design from the outset—a “privacy-by-design” approach.
Agbo emphasized, “Data privacy should not be treated as a compliance obligation or a technical feature added at the end of development. It must be seen as core infrastructure, as fundamental as the networks and platforms that deliver the services.” Optasia, drawing on experience across 38 countries, notes that trust directly influences adoption rates among underbanked populations globally.
For consumer advocates, the stakes are high. Unauthorised data sharing, predatory lending enabled by analytics, or biometric leaks can cause severe financial and personal harm, deterring participation in the formal system. The success of Nigeria’s financial inclusion drive now hinges on addressing these privacy risks systematically, transforming data protection from a legal requirement into a foundational element of digital finance.
