A Nigerian tier-2 bank, known for its market capitalization of ₦323 billion ($205 million), has refuted allegations of a data breach by the Nigerian Data Protection Commission (NDPC). The bank is contesting a fine of ₦555.8 million ($353,254) imposed by the NDPC.
The issue revolves around a customer’s assertion that the bank utilized their personal details without permission to open an account.
Fidelity Bank has conducted an internal inquiry that revealed no signs of a data breach. They maintain that the account initiation process was halted due to missing documentation.
In a statement, the bank expressed, “On May 2nd, 2023, we informed the NDPC that no laws were violated as there was neither a data breach nor completion of the account opening process.”
“We took immediate action by blocking and subsequently closing the account when the required documents were not provided,” the bank added.
The NDPC alleges that the bank mishandled personal data without proper consent and engaged non-compliant third-party data processors. Alongside repeated warnings and inadequate remedial plans, the NDPC sanctioned the bank with a fine of ₦555.8 million ($353,254).
Fidelity Bank stated that initially, the NDPC requested a remedial fee of ₦250 million ($158,894) on December 5, 2023. However, the bank contested this decision, asserting its compliance with the law. Despite ongoing discussions, the NDPC increased the penalty to ₦555.8 million on August 20, according to the bank.
The bank’s dispute with the NDPC occurs at a time of heightened scrutiny of data privacy and protection in Nigeria. Recently, the Federal Competition and Consumer Protection Commission (FCCPC) fined WhatsApp $220 million for allegedly failing to obtain user consent for data usage.
Early-bird tickets for the Moonshot Conference are now available! Secure your spot and explore the exciting lineup of speakers at the conference!
