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Telecommunications operators in Nigeria are preparing to engage the Nigeria Data Protection Commission (NDPC) regarding its proposed hike in licensing fees for data protection compliance organizations (DPCOs) from N50,000 to N2 million.
The telcos, which serve as major data collection platforms, argue that the timing of the fee increase is problematic. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), emphasized the need for a review of the proposed increase.
Adebayo explained that the telcos’ agents typically perform basic data collection tasks, and imposing additional fees could lead to multiple levies. “The NDPC’s recent announcement that data collection agencies need to register and pay a new fee is not ideal for the sector at this time. These agents are performing simple, basic work, and additional fees could hamper industry development,” he said.
He added that the telecom sector is already burdened with nearly 50 different forms of taxes and levies. “While it’s not a matter of dispute, it’s a concern we’ve raised with the regulator. We believe this issue should be addressed urgently,” Adebayo stated.
Recently, NDPC’s National Commissioner, Dr. Vincent Olatunji, announced the fee increase during a meeting with licensed DPCOs in Lagos. He noted that many DPCOs that obtained licenses at the lower fee have not been adequately performing, leading to low registration of data controllers. This underperformance resulted in the revocation of 19 licenses last year, with the possibility of more revocations this year as the commission continues to evaluate licensee performance. Currently, there are 291 licensed DPCOs.
“Last year, we revoked 19 licenses, and we may revoke more this year based on performance evaluations. By increasing the license fee to N2 million, we aim to ensure that only serious businesses apply for a DPCO license,” Olatunji explained.
While acknowledging that compliance with Nigeria’s data protection law is still low, Olatunji noted improvements. “We received 622 audit reports from data controllers in the first year, and now we are seeing over 3,000. However, with over 500,000 data controllers in Nigeria, our compliance rate is still below 20%,” he said.
Meanwhile, Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, announced via X (formerly Twitter) that discussions with the Minister of Interior, Olubunmi Tunji-Ojo, are underway regarding a data breach at the National Identity Management Commission (NIMC). The Ministry of Interior oversees NIMC, which manages Nigeria’s identity database.
Tijani expressed confidence in the Ministry of Interior and NIMC’s efforts to promptly address the data breach issue. “I have engaged with my counterpart at the Ministry of Interior on this matter and am confident in their commitment to safeguarding our national identity data,” Tijani affirmed.
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