A Federal High Court has upheld the statutory powers of the Nigeria Data Protection Commission to designate and register Data Controllers and Data Processors of Major Importance under the Nigeria Data Protection Act.
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Following the judgment, the NDPC has directed all Data Controllers and Data Processors of Major Importance who are yet to register with the commission to do so immediately.
The directive was contained in a statement issued on Tuesday by the Head of Legal, Enforcement and Regulations at the NDPC, Babatunde Bamigboye, who described the judgment as a major milestone for data accountability and regulatory oversight in Nigeria.
The ruling arose from the suit Emmanuel Harunna v. Nigeria Data Protection Commission, marked FHC/L/CS/1116/2024, in which the applicant, Emmanuel Harunna, asked the court to declare that Point of Sale agents were not Data Controllers or Data Processors of Major Importance under the Nigeria Data Protection Act.
The applicant also sought a perpetual injunction restraining the commission from registering them under that category.
In the judgment, Justice F. N. Ogazi examined the NDPC’s Guidance Notice on Registration alongside Sections 5(d), 6(c), 44, 45 and 65 of the Nigeria Data Protection Act.
The court held that the commission acted within its statutory powers in designating entities under the Major Data Processing – Ordinary High Level category as Data Controllers and Data Processors of Major Importance.
Quoting the judgment, the NDPC said the court held that the Nigeria Data Protection Act was enacted to promote accountability, transparency and responsible data governance.
“The Nigeria Data Protection Act was enacted to promote accountability, transparency and responsible data governance. Registration enables the Respondent to identify entities engaged in significant data processing activities, monitor compliance,” the court held.
The court further held that the registration framework does not undermine the constitutional right to privacy, but rather protects it by bringing data controllers and processors under effective regulatory oversight.
“Far from undermining the constitutional right to privacy, the registration framework is one of the statutory mechanisms designed to safeguard that very right by subjecting data controllers and data processors to effective regulatory oversight,” the judgment stated.
Justice Ogazi also held that the NDPC’s Guidance Notice was aimed at protecting the privacy and security of data subjects.
“Looking at the recitals of the Guidance Notice, there is every indication that the Guidance Notice is also aimed at protecting the privacy and security of data subjects, thus bringing the registration requirement of the Guidance Notice within the protective shield of Section 45 of the 1999 Constitution,” the court held.
According to the commission, the court also relied on Section 63 of the Data Protection Act, which provides that the Act shall prevail over any other law inconsistent with its provisions on matters relating to the processing of personal data.
Reacting to the judgment, the NDPC said the decision was a significant boost to Nigeria’s data protection regime and the development of data accountability jurisprudence.
“The Commission appreciates the ground-breaking efforts of the court towards the advancement of the jurisprudence relating to data accountability in Nigeria, as eloquently demonstrated in this case,” the statement read.
The commission said its National Commissioner and Chief Executive Officer, Vincent Olatunji, had directed all Data Controllers and Data Processors of Major Importance who had not complied with the registration requirement to register without further delay.
The NDPC warned that failure to register could expose defaulting entities to serious legal liabilities under the law.
“Failure to register creates serious legal liabilities under the law, while compliance with registration requirements builds public trust and safeguards the fundamental rights and freedoms of data subjects in Nigeria,” the commission stated.
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