Growing concerns over data privacy and security are emerging as a major barrier to Nigeria’s financial inclusion drive, despite years of investment in digital infrastructure and connectivity.
While policymakers have focused on expanding broadband access, mobile penetration and fintech innovation, industry experts now warn that trust — particularly around how personal data is collected, stored and used — could determine whether millions of Nigerians embrace formal financial services.
In 2012, the Central Bank of Nigeria (CBN) set a target to reduce Nigeria’s adult financial exclusion rate to 20 per cent by 2020 under its National Financial Inclusion Strategy. However, the exclusion rate stood at 36 per cent in 2020, according to the regulator’s 2022 report, highlighting persistent gaps in access and adoption.
Industry leaders say the challenge has shifted beyond infrastructure.
“Increasing connectivity is essential, but it is only a prerequisite,” said Uchenna Agbo, Chief Commercial Officer at Optasia. “True inclusion requires meaningful participation, and that depends on trust.”
Across major commercial centres such as Balogun Market, many traders who rely heavily on cash transactions remain hesitant to adopt digital financial services. Although many own mobile phones and are aware of mobile money platforms, concerns about fraud, account hacking and misuse of personal information continue to discourage uptake.
Stories of compromised accounts and data leaks have circulated widely, reinforcing fears among small business owners that digital systems could expose sensitive personal and financial information. For many low-income earners, privacy risks are viewed not as abstract regulatory concerns but as direct threats to livelihoods.
The issue has gained fresh attention following the enactment of the Nigeria Data Protection Act and the establishment of the Nigeria Data Protection Commission, which is responsible for enforcing data protection standards and promoting responsible data practices across sectors.
Analysts argue that while regulatory frameworks are necessary, they are insufficient on their own. Financial service providers, they say, must go beyond compliance and embed privacy protections into the design of products and services — an approach widely known as privacy-by-design.
“Data privacy should not be treated as a compliance obligation or a technical feature added at the end of development,” Agbo said. “It must be seen as core infrastructure, as fundamental as the networks and platforms that deliver the services.”
Optasia, which operates in 38 countries and serves more than 120 million monthly active users globally, maintains that experience from other markets shows trust directly influences digital adoption rates, especially among underbanked populations.
Consumer advocates also warn that for low-income users, the consequences of privacy breaches can be severe. Misuse of biometric data, unauthorised sharing of financial histories or predatory lending practices enabled by data analytics could further undermine confidence and slow Nigeria’s progress toward broader financial inclusion.
