Banking Sector

Fidelity Bank Hit with Record N555.8 Million Fine for Data Protection Breach

Published

4 weeks ago

August 21, 2024

The Federal Government, through the National Data Protection Commission (NDPC), has imposed a record-breaking fine of N555.8 million on Fidelity Bank for violating customer data protection laws.

This penalty is the largest ever issued by the commission, setting a strong precedent for the enforcement of data privacy regulations in Nigeria.

The announcement was made by Vincent Olatunji, National Commissioner of the NDPC, during a Validation Workshop on the Nigeria Data Protection Act General Application and Implementation Directive held in Abuja on Wednesday.

According to Olatunji, the fine was a direct consequence of Fidelity Bank’s breaches of the National Data Protection Act (NDP Act) 2023 and the Nigeria Data Protection Regulation (NDPR) 2019.

The N555.8 million penalty represents 0.1% of the bank’s annual gross revenue for 2023 and highlights the NDPC’s commitment to enforcing compliance with data protection laws.

Olatunji emphasized that while the NDPC has focused largely on awareness and education about data protection regulations, violations are taken seriously, and penalties will be enforced for non-compliance.

“Data protection compliance is important, and we have stated that non-compliance will be punished,” Olatunji said.

“We have penalties that range from N10 million or up to two per cent of gross earnings for the previous year. In the case of Fidelity Bank, after thorough investigations and the severity of the breaches, we issued the highest fine yet.”

The NDPC had been investigating Fidelity Bank since April 2023 after serious breaches in the handling of customer data were discovered.

Initially, the bank was cooperative, but as investigations concluded, the bank reportedly became resistant to further discussions with the commission, leading to the full penalty being imposed.

Fidelity Bank’s violations involved mishandling customer data, a critical breach under the NDP Act, which prioritizes the protection of personal information and holds organizations accountable for maintaining the privacy of the data they handle.

The NDP Act, passed in 2023, seeks to strengthen the rights of individuals and ensure that businesses and institutions are transparent in their data management practices.

“This fine is a clear warning to all organizations handling personal data that breaches will not be tolerated. We expect companies to take this issue seriously, as failure to comply will result in significant penalties,” Olatunji added.

The bank has been given 14 days to pay the fine or face further consequences. The NDPC’s actions are part of a broader push to establish Nigeria as a leader in data protection, particularly in the wake of increasing digitalization and the growing importance of personal data security.

This fine sends a strong message to the financial sector and beyond: compliance with data protection laws is mandatory, and lapses will be met with stringent consequences.

Fidelity Bank’s situation highlights the need for all organizations to prioritize data protection and ensure they meet the necessary legal standards.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

7 days ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

7 days ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.

Banking Sector

UBA Rewards 30 Lucky Customers in Legacy Promo

Published

1 week ago

September 9, 2024

Investors King

As part of ongoing activities to commemorate its 75th anniversary, United Bank for Africa (UBA) Plc, has rewarded 30 loyal customers with over N17 million in the just concluded draw for August.

The winners were announced following a transparent draw conducted at the bank’s headquarters, which was streamed live on YouTube. Representatives from the National Lottery Regulatory Commission (NLRC) were invited to oversee the proceedings, ensuring fairness and compliance with regulations.

The bank said in a statement that inthe top tier, 10 lucky bumper account holders: Joshua Izenobor, Chigozie Victor Abel, Cornelius Peter Nwankwo, Joy Esele Asibor, Mohammed Abubakar, Marachi Jenifer Kevin, Chidinma J. Okoronkwo, Saidu Ahmadu, Philomena Ezekiel, and Peace Ogechi Idoko, emerged as winners of N1 million each.

UBA explained that in the second category, another group of 10 lucky customers were rewarded with N500,000 each. The beneficiaries of this prize are: Elizabeth Warekoromor, Deborah Ijeoma Simon, Prince Chukwuamago, Yohanna Cyrus, Aishatu Aliyu, Djachi Ben-Ikezam, Tibebi Glory Esiteh, Emmanuel C. Udekwe, Ozima Friday Asiku, and Beauty Danasabe.

The third category saw 10 more lucky account holders each receiving N250,000. These winners include: Olusegun Oke, Salisu Adamu, Sola Deborah Adeyeye, Chidozie Nwachukwu, Gloria Abimaje, Anyiwe Stephen Ifeanyi, Kehinde F Adefemiwa, Oluwakemi Olushola Olayande, Adamu Hajara Adamu, and Ruth Adugba

Group Head of Retail & Digital Banking, UBA, Shamsideen Fashola, who congratulated all 30 winners after the draw, encouraged others to keep saving for a chance to win in the next edition, adding that the bank plans to reward 75 winners in each of the three categories, with a total of 195 more customers to be selected in the coming months.

“This is just the beginning of our legacy promo draw, as there are still many more prizes to be won in subsequent monthly draws. These draws are purely transparent, and the next millionaire could just be you. We encourage our loyal customers to follow the stated guidelines to win, and they could just be the next millionaire,” Fashola said.

Group Head of Marketing and Corporate Communications, UBA, Alero Ladipo, said that the bank is not conducting the draw for profit purposes but to ensure that its customers feel a sense of belonging.

“This initiative is part of UBA’s ongoing efforts to appreciate its customers and encourage a savings culture among our account holders. The UBA Legacy Promo is part of our CSR initiative to give back to society,” Ladipo said.