Data Privacy Governance in Nigeria: How Boards Should Lead Data Protection in the AI Era

Why Privacy Governance is a Board-Level Responsibility in Nigeria

For decades, privacy was treated as a concept for the IT department’s attention or an action for technology-related companies to worry about, firewalls, passwords, encryption discussions, and the like. But that world is long gone. In an era defined by data consciousness, artificial intelligence, cloud computing, and platform-driven business models, privacy has become a core pillar of digital stewardship, where leaders must balance innovation with ethical data practices to preserve trust and organizationalintegrity.

Privacy sits at the intersection of trust, ethics, regulatory compliance, and enterprise risk, highlighting the crux of corporate responsibility. For Nigerian boards, this shift demands urgent attention to data protection governance. The way organizations collect, process, store, and monetize data is increasingly being scrutinized not only by regulators but by clients, employees, investors, and the world in general. As a result, privacy outcomes now form an integral part of the governance and decision-making responsibilities of the Board and senior management of corporate entities¹, which is a direct call to take direct ownership of the privacy outcomes of their business activities. Under the NDPA 2023, board-level accountability for privacy is no longer optional.

NDPA 2023 and Data Privacy: Addressing Oversight Gaps in Emerging Technologies

Under the Nigeria Data Protection Act (NDPA) 2023, as operationalized by the General Application and Implementation Directive (GAID)² 2025, data privacy refers to the rights, protections, and controls applied to the processing of personal data, ensuring that individuals’ information is handled lawfully, fairly, transparently, and securely. Nigerian companies must align their governance frameworks with these NDPA requirements.

Data privacy under the law means ensuring that personal data is protected from misuse, unauthorized access, or unlawful processing; individuals (“data subjects”) maintain control over their personal information, organizations (“controllers” and “processors”) handle data lawfully, transparently, and ethically, and individuals’ data‑protection rights are upheld, enforced, and actionable. Processing of personal data is only lawful where consent (specific and unambiguous) has been obtained, it involves a contractual/legal obligation or on a public interest basis. This, therefore, establishes an obligation for organizations and corporate entitiesthat collect any form of data from data subjects (this involves theircustomers, visitors, employees, suppliers, etc.”) to create a structure foraccountability. This term is known as privacy-by-design.

Emerging technologies have dramatically expanded organizational data footprints, that is, the amount of data organizations handle and the way it moves with the data controller. With the structure of Artificial Intelligence (AI) systems today, it is notable that it relies on vast datasets obtained from Internet of Things (IoT) devices, which generate continuous streams of personal information, without conscious human input. We also note the heavy reliance on cloud infrastructures, which blur the traditional boundaries of data ownership and control.

These developments have exposed acritical oversight gap: innovation often outpaces governance. While organizations race to deploy new technologies for efficiency and growth, privacy considerations are frequently addressed too late or delegated too narrowly to technical teams without adequate strategic oversight.

The result is a growing disconnect between technological capability and institutional accountability. Without board-level understanding and engagement, privacy risks become embedded in business models rather than actively managed. This ultimately exposes organizations to substantial legal, ethical, operational, and reputational dangers, and Boards that do not demand early-stage privacy review create long-termstructural risk for affected companies. There is also a compliance gap to consider, which involves the requirement for mandatory registration for DataControllers/Processors of Major Importance (DCPMIs), and the requirement to file annual Compliance Audit Reports, as highlighted under the GAID.

Board Accountability for Privacy Failures: Corporate Governance Under NDPA

Privacy breaches are no longer viewed as isolated IT incidents; rather, they are increasingly being interpreted as failures of leadership, culture, and oversight. Data leaks, misuse of personal information, or opaque algorithmic decision-making can erode public trust overnight and trigger severe regulatory, financial, and reputational consequences for a company.

From a governance perspective, privacy failures raise fundamental data ethics concerns for the board, such as the failure to identify and escalate the risk in time, questions on the Board’s capacity to understand data implications of strategic decisions, or whether ethical considerations were weighed alongside commercial objectives. Where the answers are unclear, regulators and stakeholders are quick to conclude that the failure lies not only in systems, but in governance. For boards in Nigeria, understanding NDPA obligations is critical to effective oversight.

The NDPA, however, marks a significant shift in how privacy is positioned within corporate accountability frameworks. The Act moves data protection beyond operational compliance and firmly into the realm of board responsibility.

Under the NDPA, clear accountability frameworks have been outlined. It notes that organizations are expected to demonstrat³:

Clear accountability for data processing activities
Proactive risk management and safeguards
Leadership commitment to lawful and ethical data use

Implicitly, this places responsibility on boards to ensure that privacy governance structures, policies, and controls are fit for purpose. Thus, this sends out a clear message: delegation without oversight is no longer defensible.

Implementing Privacy-by-Design: A Board Governance Framework for Nigerian Companies

“Privacy by Design” is often misunderstood as a technical concept. In reality, it is a governance philosophy. In practice, it means embedding privacy considerations into decision-making from the outset, rather than retrofitting controls after problems arise. It highlights the structure of how privacy considerations should inform strategic choices. At a governance level, Privacy by Design reinforces the principles of responsible innovation, which include:

Requiring privacy impact assessments for new products, technologies, and partnerships.
Ensuring data minimization principles inform business strategy.
Integrating privacy risk into enterprise risk management frameworks.
Aligning incentives so innovation does not undermine ethical data use.

Nigerian organizations adopting privacy-by-design position themselves as leaders in data protection compliance. When privacy is designed into governance processes, organizations are better positioned to innovate responsibly while maintaining stakeholder trust. Thus, the evolving privacy landscape demands a shift in mindset and practice at the top of organizations. On this note, the recommendations to Boards and senior management are as follows:

a. Make Privacy a Standing Board Agenda Item: Best Practices for Nigerian Directors

Privacy should feature regularly in board and committee discussions, not only after incidents occur. This involves receiving updates from the Management team on the Company’s data processing and (or) collecting practices.

‍b. Board Data Literacy Training: Essential Skills for Privacy Oversight

Directors do not need to be technologists or serve on a technology-focused firm first, but they must understand the strategic and ethical implications of data-driven models. This involves taking regular training and updating themselves on the evolving practice of technology use.

‍c. Establish Clear Accountability Lines for Data Protection Compliance

Clear lines of responsibility, supported by independent assurance, are essential to effective oversight. That way, the Board has a clear sight of responsibility and accountability in reporting and management.

d. Balancing AI Innovation with Ethical Data Practices in Your Organization

Growth strategies should be assessed not only for profitability but for their contribution to a sustainable trust architecture, which reinforces stakeholder confidence overtime.

e. Leadership Commitment to Privacy: Setting the Compliance Tone from the Top

Leadership behaviour sets the tone of organizational culture. A visible commitment to privacy and a compliance culture signals seriousness across the enterprise, communicates the Board’s position on data protection and privacy, which ultimately cascades to the Management Teams.

Frequently Asked Questions: Board Privacy Governance in Nigeria

1. What are board responsibilities under NDPA 2023?

Under the Nigeria Data Protection Act 2023, boards are responsible for ensuring clear accountability for data processing activities, implementing proactive risk management and safeguards, and demonstrating leadership commitment to lawful and ethical data use. Boards can no longer delegate privacy oversight without maintaining strategic supervision.

2. What is Privacy-by-Design in corporate governance?

Privacy-by-Design is a governance philosophy that embeds privacy considerations into decision-making from the outset. At the board level, it requires privacy impact assessments for new technologies, data minimization in business strategy, integration of privacy risk into enterprise risk frameworks, and alignment of innovation incentives with ethical data use.

3. Who must register as a Data Controller/Processor of Major Importance (DCPMI)?

Under the GAID 2025, organizations meeting certain thresholds for data processing volume, sensitivity, or impact must register as DCPMIs with the Nigeria Data Protection Commission. This includes filing annual compliance audit reports and maintaining enhanced governance standards.

4. How should boards build data literacy for privacy oversight?

Boards should implement regular training on data protection principles, understand strategic and ethical implications of AI and emerging technologies, stay updated on NDPA requirements and enforcement trends, and engage with privacy professionals to inform strategic decisions.

5. What are the consequences of privacy governance failures in Nigeria?

Privacy governance failures can result in regulatory penalties under NDPA, reputational damage and loss of stakeholder trust, civil liability from affected individuals, operational disruptions from data breaches, and loss of competitive advantage in increasingly privacy-conscious markets.

Conclusion: Key Takeaways for Boards

In an era defined by data-driven decision-making and rapidly evolving technologies, privacy is no longer a technical afterthought; it is an accountability mechanism which gives insight into a Company’s governance framework and therefore should be considered a strategic leadership imperative. Thus, the organizations that will thrive are not those that innovate the fastest, but those that innovate responsibly, anchoring their use of data in transparency, accountability, and respect for individual rights.

For directors and senior executives, this moment demands more than compliance; it demands stewardship, checks & balances and board oversight. Privacy must be understood as both a trust asset and a governance obligation, that is, one that shapes enterprise risk, stakeholder confidence, and long-term value creation. Nigerian boards that prioritize data protection under the NDPA will build sustainable competitive advantage. Also, when corporate leaders embed privacy‑by‑design into strategy, ensure literacy at the board level, and set a clear tone from the top, they build organizations capable of navigating complexity without compromising ethics.

Ultimately, the future of digital governance will be defined not by the sophistication of the technology deployed, but by the strength of its ethical governance. In this new landscape, privacy is a measure of organizational maturity, board & Management accountability, and an indicator of whether leadership is prepared to balance innovation with responsibility. The companies that recognize this truth now will position themselves as trusted players in the digital economy, while those that ignore it risk regulatory exposure, stakeholder backlash, and the erosion of public trust.

Privacy, therefore, is not just acompliance requirement; it is a cornerstone of ethical leadership in the age of emerging technologies, and how companies respond today will determine theircredibility in the years ahead.