Data protection is rapidly becoming a central issue in Nigeria’s drive for financial inclusion, as telecommunications operators expand beyond traditional voice and data services into lending, payments, insurance and other digital offerings.
Once focused largely on connectivity, telecom companies are increasingly repositioning as technology platforms, rolling out micro-loans, savings products, digital wallets and educational services. That evolution has significantly expanded their access to sensitive personal and financial data, intensifying concerns around privacy, trust and consumer protection.
Uchenna Agbo, Chief Commercial Officer at Optasia, said Nigeria’s digital inclusion efforts risk losing momentum if privacy concerns are not addressed alongside infrastructure expansion.
“Connectivity is no longer the biggest barrier,” Agbo said in an interview. “The real issue is whether people trust that their data will not be exposed or misused.”
Nigeria is targeting 95 per cent adult financial inclusion under the National Financial Inclusion Strategy of the Central Bank of Nigeria. However, earlier milestones were missed, with financial exclusion standing at 36 per cent in 2020, well above the 20 per cent target set for that year.
Agbo noted that the data underscores a key gap in policy thinking: wider mobile coverage and smartphone penetration alone are not enough to bring millions into the formal financial system.
“In many markets, traders already have phones and understand mobile money,” she said. “But stories of hacked accounts and leaked personal data travel fast. For many people, going digital feels like giving up control.”
As telecom operators increasingly rely on customer data to assess creditworthiness and personalise financial services, the scale of their data footprint has made privacy a defining issue for the next phase of inclusion.
Nigeria’s data protection framework has been strengthened by recent legislation and enforcement efforts led by the Nigeria Data Protection Commission. Still, Agbo argued that regulatory compliance should be treated as a baseline rather than a finish line.
“The law sets the floor,” she said. “Trust is built when companies go beyond minimum requirements and design systems that protect users from the outset.”
She called for wider adoption of privacy-by-design principles, where data protection safeguards are embedded into products before launch. Clear consent mechanisms and transparent communication on how customer data is collected and used would also help rebuild confidence, she added.
Optasia, which provides technology-driven micro-financing across multiple markets, analyses large volumes of data to support credit decisions. According to Agbo, responsible data governance is not only an ethical obligation but also a commercial advantage.
“In a competitive market, trust drives long-term engagement. When customers feel secure, they are far more willing to adopt new services,” she said.
Industry analysts say the stakes are rising as telecom firms evolve into so-called “TechCos,” blurring the lines between telecom operators and financial service providers. Platforms once limited to airtime delivery are now managing payments, storing personal data and making lending decisions.
For regulators and operators alike, the challenge will be striking the right balance between innovation and protection.
“If we want to reach the next wave of users, especially in the informal sector, we must show that innovation does not mean intrusion,” Agbo said.
As Nigeria pushes to meet its inclusion targets, the debate is shifting from network rollout to credibility. For millions of Nigerians, the decision to embrace digital finance may hinge less on access — and more on confidence that their personal data is truly safe.
