Data protection becomes Nigeria’s inclusion battleground as telcos pivot to tech

Data protection is fast becoming the defining issue in Nigeria’s push for financial inclusion, as telecommunications companies expand beyond voice and data services into lending, payments and other digital services.

Telecoms operators, once focused mainly on connectivity, are increasingly positioning themselves as technology platforms offering micro-loans, insurance, savings products and education services. That shift has widened their access to sensitive personal and financial data, raising fresh concerns about privacy and consumer protection.

Uchenna Agbo, chief commercial officer at Optasia, told BusinessDay in an interview that the country’s digital push risks stalling if privacy concerns are not addressed alongside infrastructure growth, noting that many Nigerians remain wary of how their personal information is handled.

Connectivity is no longer the biggest barrier. The real issue is whether people trust that their data will not be exposed or misused,” she said.

Nigeria is targeting 95 percent adult financial inclusion under the National Financial Inclusion Strategy of the Central Bank of Nigeria. Yet earlier targets were missed. Financial exclusion stood at 36 percent in 2020, above the 20 percent goal set for that year, according to official data.

Agbo said the figures show that expanding mobile coverage and smartphone access alone will not automatically bring millions into the formal financial system.

“In many markets, traders have phones and understand mobile money. But stories of hacked accounts and leaked personal information spread quickly. For them, using digital platforms can feel like giving up control,” she added.

Telecom operators, traditionally focused on voice and data, are increasingly positioning themselves as broader technology companies. Many now offer micro-loans, insurance products and digital wallets, relying heavily on customer data to assess risk and tailor services.

Agbo said that growing data footprint makes privacy central to the next phase of inclusion.

The Nigeria Data Protection Act and the enforcement efforts of the Nigeria Data Protection Commission have strengthened the legal framework around personal data. But Agbo argued that compliance should be seen as a starting point, not the finish line.

“The law sets the floor. Trust is built when companies go beyond minimum requirements and design systems that protect users from the outset,” she stated.

She called for stronger adoption of privacy-by-design principles, where data protection measures are embedded into products before they are launched. Clearer consent models and transparent communication about how data is used would also help reassure customers, she added.

Optasia, which provides technology-driven micro-financing services across multiple markets, analyses large volumes of data to support credit decisions. Agbo said responsible data governance is not only ethical but commercially sound.

” In a competitive market, trust drives long-term engagement. When customers feel secure, they are more willing to adopt new services,” she said.

Industry analysts say the stakes are rising as telecom firms transition into so-called TechCos. The same platforms that deliver airtime are now assessing creditworthiness and managing financial transactions, blurring the line between telecom operator and financial service provider.

For regulators and service providers alike, the challenge will be balancing innovation with protection.

“If we want to reach the next wave of users, especially those in the informal sector, we must prove that innovation does not mean intrusion,” Agbo said.

With Nigeria’s inclusion targets still in view, the debate is shifting from network expansion to credibility. For millions of Nigerians, the choice to go digital may depend less on access and more on whether they believe their personal data is safe.