In today’s digital-first world, data is power. It drives business decisions, enhances customer experiences, and enables growth. However, with increasing volumes of sensitive and personal information being generated daily, securing this data has never been more critical. Organisations that fail to prioritise data security risk not only their reputation but also their very existence.
Rising Threat of Data Breaches
Data breaches have become all too common. In recent years, high-profile hacks and cyberattacks have made headlines, affecting industries from banking to healthcare. For businesses, the consequences of a data breach can be disastrous. According to recent studies, 90% of businesses that suffer a data breach go out of business within two years due to the financial and reputational toll.
These breaches often result in stolen customer information, such as credit card details, personal identification numbers, and even private health records. For organisations, the fallout includes fines, legal battles, loss of consumer trust, and in some cases, a permanent stain on their brand.
Advantages of Securing Your Data
While securing data might seem like a financial burden at first, the long-term return on investment (ROI) can be enormous. Here’s how:
Protection Against Financial Loss
Data breaches can cost businesses millions, not just in fines, but also in lost revenue, operational disruptions, and legal fees. The Global Cost of a Data Breach Report shows that, on average, a single breach costs businesses around $4.35 million. By investing in data security, businesses can avoid these catastrophic costs.
Boosts Customer Trust and Loyalty
In an era where consumers are increasingly concerned about their privacy, businesses that make data security a priority show their customers they are trustworthy. Secure data practices enhance customer loyalty, as individuals are more likely to continue doing business with companies that safeguard their personal information.
Regulatory Compliance
With governments around the world tightening data protection laws, securing data is not just a smart business decision — it’s a legal necessity. Compliance with laws and regulations ensures that businesses avoid hefty fines and stay on the right side of the law.
Improved Operational Efficiency
Robust data security protocols often go hand-in-hand with efficient systems. In organisations where data is properly secured, there is typically a stronger framework in place for handling, storing, and retrieving information. This streamlines operations and helps businesses run more smoothly.
Nigerian Legal Landscape: Data Privacy and Reporting Obligations
In Nigeria, the National Information Technology Development Agency (NITDA) is the regulatory body responsible for enforcing data protection laws. The Nigeria Data Protection Regulation (NDPR), introduced in 2019, is the country’s primary legal framework for securing personal data.
Under the NDPR, businesses must adhere to several key regulations, including:
Data Collection and Consent: Organisations are required to obtain explicit consent from individuals before collecting or processing their personal data. Businesses must also inform consumers of how their data will be used.
Data Security Measures: Organisations must implement stringent technical and organisational measures to protect personal data from loss, destruction, or unauthorised access.
Reporting Data Breaches: One of the most crucial aspects of the NDPR is the requirement for businesses to report data breaches within 72 hours. Failure to report breaches on time could result in severe penalties, including fines of up to N10 million or 2% of annual revenue (whichever is higher).
Furthermore, Nigerian law mandates that data controllers (businesses) must conduct regular audits and reviews of their data protection practices to ensure compliance. This is where proactive security measures can be the difference between compliance and costly non-compliance.
The ROI of Data Security: It’s Not Just About Protection, It’s About Growth
Investing in data security should be seen as an opportunity rather than a cost. Here’s why:
Reputation as a Selling Point: Customers are increasingly aware of data security risks. Businesses that showcase strong data protection measures are seen as more reputable and reliable.
Long-Term Savings: While initial security measures may require investment, the costs associated with a breach — from legal penalties to operational downtime — far outweigh the price of prevention.
Business Continuity: With the right security systems in place, businesses can continue operating without disruption in the event of a cyberattack or data breach, preserving both productivity and revenue.
Conclusion: The Time to Act is Now
In a world where data is integral to business operations, securing it is no longer an optional expense — it is an absolute necessity. Whether it’s preventing costly breaches, ensuring compliance with Nigerian laws, or simply building customer trust, the benefits of data security far outweigh the risks of neglect.
As cyber threats continue to evolve, businesses must stay ahead of the curve by implementing robust data protection strategies. The long-term ROI is undeniable: security equals trust, and trust equals growth. Companies that invest in securing their data today will be the leaders of tomorrow.
Mogbojuri is a Data Security Expert and Cybersecurity Consultant with over 15 years of experience helping businesses across Nigeria and globally enhance their data protection frameworks. With a passion for technology, he has advised numerous firms on navigating the complexities of data privacy regulations and securing sensitive information.
