Nigeria Data Protection Commission (NDPC) has launched the Meta-Supported Initiatives for Data Protection (M-SIDP), a strategic programme aimed at strengthening data privacy awareness, regulatory compliance and institutional capacity across Nigeria’s digital ecosystem.

The initiative follows the conclusion of regulatory proceedings involving Meta Platforms Inc., the parent company of Facebook, Instagram and WhatsApp, over concerns relating to the processing of personal data belonging to Nigerian users. The matter was resolved in 2025 through a court-approved settlement.

Under the agreement, Meta committed to supporting a two-year programme of public-facing data protection measures designed to advance the objectives of the Nigeria Data Protection Act (NDP Act) 2023, the General Application and Implementation Directive (GAID), and the NDPC Strategic Roadmap and Action Plan (SRAP) 2023–2027.

Announcing the initiative, the Commission said the programme would strengthen safeguards for data subjects while promoting responsible data processing practices among organisations operating in Nigeria.

According to a statement signed by Itunu Dosekun, head of the NDPC Media Unit, the programme will focus on governance, research and development, safety and sustainability mechanisms for technology ecosystems, capacity building for Data Protection Officers (DPOs) and Data Protection Compliance Organisations (DPCOs), as well as public awareness campaigns targeted at vulnerable groups.

The Commission stated, “As part of the settlement, Meta committed to supporting a two-year programme of public-facing data protection measures that aligns with the objectives of the Nigeria Data Protection Act, 2023 (NDP Act), the NDP Act General Application and Implementation Directive (GAID) and the NDPC Strategic Roadmap and Action Plan (SRAP) 2023–2027.”

The NDPC stressed that the settlement does not limit its regulatory authority.

“Nothing in this settlement limits the Commission’s independent statutory powers as we continue to exercise our regulatory mandate in relation to data processing activities in Nigeria, in accordance with the NDP Act and other applicable laws,” it stated.

The development comes amid rising global scrutiny of technology companies over data privacy practices, with regulators in regions including the European Union and the United States tightening enforcement against breaches and non-compliance.

Nigeria has also intensified efforts to strengthen its privacy framework following the enactment of the Nigeria Data Protection Act in 2023, which established the NDPC as an independent regulator empowered to monitor compliance, investigate violations and impose sanctions.

Industry experts warn that increasing digital adoption across banking, telecommunications, e-commerce, healthcare and public services has heightened risks of identity theft, cybercrime and unauthorised data sharing.

The NDPC has in recent years stepped up enforcement actions against organisations that violate data protection rules, while also expanding accreditation for Data Protection Compliance Organisations and training for privacy professionals.

The Meta-supported initiative is expected to address gaps in public awareness and technical capacity, while also supporting research and policy development on emerging issues such as artificial intelligence, cross-border data transfers and platform governance.

The Commission said it would provide periodic updates on the implementation of the programme and called on stakeholders to support efforts to build a secure, transparent and accountable privacy ecosystem in Nigeria.

A report by the Alliance for Economic Research and Ethics (AERE), has criticised commercial banks for abandoning their core intermediation role to support economic growth as N91.1 trillion remained sterilised at the Central Bank of Nigeria’s (CBN) standing deposit window.

The report lamented the scale of idle liquidity parked at the CBN, noting that this represented not financial strength, but a structural failure of credit allocation, adding that the country’s real sector was being systematically starved of capital.

Separately, Alliance also raised concerns over the sustainability of the country’s fiscal position, warning that despite improvements in government revenue, persistent leakages, rising debt obligations and weak capital spending continued to undermine budgetary effectiveness.

The policy advocacy group said recent fiscal indicators suggested that government revenues are improving and budget deficits are narrowing, but stressed that the gains remained insufficient to offset mounting spending pressures and the growing burden of debt servicing.

Nonethless, it said, “The N91.1 trillion is not a sign of banking strength. It is a symptom of banking failure — a failure of intermediation, a failure of purpose, and a failure of national duty.”

AERE is a policy think tank chaired by Dele Oye, a former national president, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).

Oye is the immediate past chairman of the Organised Private Sector of Nigeria (OPSN) and Chairman of the Nigeria-Türkiye Business Council (NTBC).

The report said, “The banks have a choice: self-regulate, reintermediate, and remember their source or face intervention that will be neither gentle nor forgiving.”

It highlighted what it described as a “cosmetic drop” in CBN standing deposit facility placements from N92.32 trillion in April 2026 to N91.1 trillion in May, arguing that the marginal decline obscures a far more troubling structural reality.

It noted that deposits surged to N128.9 trillion in March 2026, before moderating slightly in subsequent months, but still reflected an extraordinary liquidity concentration at the apex bank.

The report estimated that banks cumulatively placed N425.86 trillion with the CBN in the first five months of 2026 alone — a figure described as “an almost 700 per cent year-on-year increase” compared to the same period in 2025.

“This is not banking. This is financial mercantilism — the capture of state-derived liquidity for private gain, with minimal productive intermediation,” the report said.

At the same time, borrowing from the CBN’s Standing Lending Facility (SLF) reportedly collapsed by 94.9 per cent, to N2.2 trillion from N43.42 trillion, reinforcing what it called a system where banks no longer need to lend to survive.

The report maintained that much of what is recorded as banking strength is, in reality, illusory, and identified three categories of “contingent assets” that distort balance sheet realities.

First are performance bonds and guarantees tied to government contracts, which are largely risk-free fiscal obligations repackaged as banking assets.

The other are delayed government payments and forbearance arrangements, which the report described as “deferred public liabilities masquerading as productive credit.”

The third category involved thecollapse of import credit demand, as firms shift away from letters of credit due to stabilising exchange rates.

According to the report, these dynamics had left banks “flush with liquidity but allergic to lending,” with treasury managers rationally opting to park funds at the CBN’s risk-free window.

The report situated the behaviour of banks within the country’s high interest rate environment, noting that the Monetary Policy Rate (MPR) stands at 26.5 percent, while the CBN Standing Deposit Facility offers 22.5 percent risk-free returns.

This, it said, creates a structural incentive problem.

The report said, “A bank treasurer faces a simple arithmetic: lend to a manufacturer at 30–35 percent over several years with multiple risks, or park funds at 22.5 percent overnight with zero risk.”

It further cites the asymmetric policy corridor designed by the CBN, which was intended to stabilise liquidity but had instead encouraged what it called “systemic sterilisation.

While acknowledging regulatory intent, the report argued that the policy has inadvertently prioritised financial stability over productive credit creation, stressing that the absence of credit to the real sector was “not a bug in the system. It is becoming a feature”.

Among other things, it referenced constrained lending to manufacturing, agriculture, and SMEs, alongside persistently high interest rates and limited access to long-term credit.

AERE warned that liquidity sterilisation at the CBN was undermining monetary policy effectiveness and inflation control.

The report also referenced recent CBN data indicating that credit to the private sector contracted by N14.02 trillion between February and April 2026, falling to N80.59 trillion.

At the same time, banks recorded record profits, with top-tier institutions reportedly posting a combined N5.54 trillion profit-after-tax in 2024 alone, a 53 per cent increase year-on-year.

It added that the “paradox is stark: banks are thriving while the economy they are meant to finance is starved of credit.”

However, it urged banks to take voluntary reform or risk facing regulatory intervention.

AERE proposed a mandatory sectoral lending quotas for manufacturing, agriculture, and SMEs, and a possible reduction or cap on returns from the CBN standing deposit facility.

It also recommended recalibration of the Cash Reserve Ratio (CRR) to penalise non-productive deposits, alongside differential treatment for funds directed into real-sector lending.

It further suggested mandatory disclosure of “contingent assets” to expose the true composition of bank balance sheets, arguing that current reporting standards obscure the extent of non-productive holdings.

A windfall tax on excess earnings from CBN placements was also proposed, with proceeds redirected into a Real Sector Credit Fund among other recommendations.

The report stated, “Nigerian banks have forgotten that their source is the real economy the farmer, the manufacturer, the trader, the entrepreneur. They have become dams, not rivers. They capture N91.1 trillion of national liquidity, earn 22.5 per cent risk-free, and report record profits while the economy they are meant to serve gasps for credit.

“The N91.1 trillion is not a sign of banking strength. It is a symptom of banking failure a failure of intermediation, a failure of purpose, and a failure of national duty.

“The banks have a choice: self-regulate, reintermediate, and remember their source or face intervention that will be neither gentle nor forgiving. The clock is ticking.”

However, speaking in its latest podcast titled, “Nigeria’s Budget: Glass Half Full or Quietly Leaking?”, the group noted that while headline figures portray a stronger fiscal outlook, underlying structural weaknesses continued to threaten the country’s economic transformation agenda.

It stated that a significant portion of government earnings is increasingly being channelled towards servicing debt rather than financing critical development projects capable of stimulating growth and improving productivity.

It warned that debt service commitments had become a dominant feature of the budget, limiting the fiscal space available for investments in infrastructure, education and other productive sectors of the economy.

The group argued that the challenge facing the country extended beyond revenue generation, adding that concerns persist over how public resources are deployed and managed.

It identified leakages, inefficiencies and structural imbalances within the fiscal system as major obstacles preventing government spending from delivering its intended economic impact.

The alliance further observed that capital expenditure remained inadequate to drive meaningful transformation in the real economy, stressing that current spending levels are insufficient to support the scale of infrastructure development and industrial expansion required to accelerate growth.

According to the group,”On paper, Nigeria’s budget looks stronger, revenues are improving, deficits narrowing.

“For look closer and something is leaking. Yes, revenues are growing, but not fast enough to match spending pressures or debt obligations. Government earnings still struggle to carry the weight of the system.

“A growing share of revenue isn’t building roads or funding industries. It’s servicing debt. Debt service dominates, bending our budget to the breaking point.

“The issue isn’t just how much Nigeria earns. It’s how effectively those funds are used. Likages, inefficiencies and structural imbalances continue to drain impact.

“Capital expenditure remains too weak to transform the real economy. No meaningful scale in infrastructure, no serious push for productivity. The path forward is clear.”

It said, “Strengthen revenue systems, cut in efficiencies, prioritize productive investment. This is where evidence-based policy matters. Our budget is leaking funds to outdated programs.

“We must fix the leak and fund the future. Investing in education and infrastructure now is essential. A budget is not just numbers. It’s a reflection of national priority. Fix the leak, fund the future. This is our call to action.”

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has urged for the development of a more comprehensive framework for tracking investments in the telecommunications sector, saying current capital importation data does not fully reflect the level of investment being made by operators.

The association made the call while reacting to the National Bureau of Statistics (NBS) Q1 2026 Capital Importation Report, which showed a decline in foreign capital inflows into the telecommunications sector from $80.78 million in 2025 to $7.24 million in the first quarter of 2026.

In a statement jointly signed by Engr. Gbenga Adebayo, ALTON Chairman, the association commended the NBS for its efforts in tracking investment flows across key sectors of the economy, but stressed the need for a broader assessment of investments within the telecom industry.

According to ALTON, while foreign capital inflows have declined, telecommunications operators continue to make substantial investments in network infrastructure, technology upgrades and operational expansion through domestic funding sources and reinvested earnings.

The association also expressed appreciation to the Federal Government for the 50 per cent tariff increase approved in 2025, describing the policy as a critical intervention that helped stabilise the sector during a difficult period.

ALTON said the tariff adjustment addressed revenue sustainability challenges, restored operational viability and enabled operators to shift from financial distress to a growth-oriented model characterised by increased capital reinvestment.

“The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” the statement noted.

Providing insight into the sector’s investment profile, ALTON disclosed that Mobile Network Operators (MNOs), tower companies and other industry players invested a total of ₦2.13 trillion in capital expenditure (CAPEX) in 2025. It added that operators have earmarked another ₦1.86 trillion for capital projects in 2026.

The planned investments, according to the association, will support network expansion, technology enhancement and other critical infrastructure projects aimed at improving service quality and coverage nationwide.

ALTON argued that the disparity between reported foreign capital inflows and actual capital expenditure points to a gap in the way sectoral investments are currently measured and reported.

It noted that a significant portion of telecom sector investments now comes from domestic capital sources and reinvested operational earnings, which may not be adequately captured under existing foreign capital importation metrics.

To address this challenge, the association proposed a collaborative engagement involving the Nigerian Communications Commission (NCC), the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN) to develop a more inclusive investment-tracking framework.

According to ALTON, a transparent and comprehensive investment reporting system would provide a more accurate picture of the sector’s contribution to the economy, strengthen investor confidence and enhance Nigeria’s attractiveness as a destination for telecommunications investment.

The association reaffirmed its commitment to working with regulators and government agencies to ensure the sector’s contributions to national development are properly documented and recognized.

ALTON also assured Nigerians that telecommunications operators remain committed to continuous investments in network expansion, modernisation, resilience and service quality improvement.

It added that sustained collaboration among government, regulators and industry stakeholders would ensure uninterrupted access to digital services that drive economic growth, innovation, financial inclusion and national development.