Fidelity Bank has been fined ₦555.8 million by the Nigerian Data Protection Commission (NDPC) for alleged violations of data protection regulations.
The fine, which equates to 0.1% of the bank's 2023 revenue or approximately $358,580, marks the largest penalty imposed by the NDPC to date.
The controversy began when the NDPC accused Fidelity Bank of illegally collecting personal data to open a customer account without proper consent.
According to Vincent Olatunji, the national commissioner of NDPC, the bank's "arrogance ultimately led us to impose the full penalty." The investigation, initiated in April 2023, revealed that Fidelity Bank processed personal data without informed consent and deployed tools such as cookies and banking apps in violation of the law.
Fidelity Bank, however, has staunchly denied these allegations. Meksley Nwagboh, the divisional head of brand and communications at Fidelity Bank, stated, "The bank conducted itself to the highest ethical standards by ensuring full compliance with extant laws on data protection."
The bank explained that an account opening request was received online but was not operational due to incomplete documentation. They emphasized that the account was immediately placed on 'Post No Debit' status and subsequently closed when the required documents were not provided.
Despite Fidelity Bank's internal investigation and subsequent communication with the NDPC, the commission remained unconvinced. On May 2nd, 2023, Fidelity Bank responded to the NDPC, asserting that there was no data breach and that the account opening process was never completed.
However, the NDPC proceeded to impose a remedial fee of ₦250 million on December 5th, 2023, which was later increased to ₦555.8 million on August 20th, 2024.
Fidelity Bank continues to engage with the NDPC in hopes of reaching an amicable resolution. The outcome of this case could set a precedent for other financial institutions facing similar allegations, highlighting the critical importance of stringent data protection practices in Nigeria's banking industry.
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