Fidelity Bank, one of Nigeria’s tier-2 financial institutions with a market capitalisation of ₦323 billion, has strongly denied allegations of a data breach made by the Nigerian Data Protection Commission (NDPC). The bank has also rejected the NDPC’s imposition of a ₦555.8 million fine related to the alleged incident.
The controversy stems from a customer’s accusation that Fidelity Bank used their personal information without obtaining proper consent to open an account. However, Fidelity Bank has stated that its internal investigation found no evidence of any data breach. The bank claims that the account in question was never fully opened due to incomplete documentation.
In a public statement, the bank clarified, “On May 2nd, 2023, we informed the NDPC that the bank did not violate any law as there was no data breach, and the account opening process was not finalized.” The bank further noted that it had taken immediate action by blocking and eventually closing the account in question when the required documents were not provided.
The NDPC, however, has accused Fidelity Bank of processing personal data without obtaining informed consent and of relying on third-party data processors that did not meet compliance standards. The regulator’s fine of ₦555.8 million was reportedly imposed after what it described as repeated warnings and unsatisfactory responses from the bank regarding the matter.
Fidelity Bank revealed that the NDPC had initially demanded a remedial fee of ₦250 million on December 5, 2023. The bank contested this fee, maintaining that it had adhered to all relevant laws. Despite ongoing discussions, the NDPC later increased the fine to ₦555.8 million on August 20, 2024, according to the bank.
This dispute comes at a time when data privacy and protection are under increasing scrutiny in Nigeria. The NDPC has been actively enforcing data protection regulations, including a notable case where it fined WhatsApp $220 million for allegedly failing to obtain user consent regarding data usage.
As the situation unfolds, Fidelity Bank continues to assert its compliance with data protection laws and its commitment to safeguarding customer information.
