Members of the House of Representatives have proposed a new law seeking to impose a minimum fine of ₦500 million and a 10-year prison sentence on individuals or organisations that transfer sensitive payment data outside Nigeria without official authorisation.
The proposed measure is aimed at strengthening Nigeria’s control over financial information, protecting sensitive payment records and addressing concerns surrounding the unauthorised movement of critical financial data beyond the country’s borders.
Under the proposal, anyone found guilty of transferring designated payment information abroad without the required approval could face severe financial and criminal penalties.
The proposed minimum fine of ₦500 million, alongside a possible 10-year prison term, reflects the seriousness lawmakers attach to the protection of payment infrastructure and financial information.
Payment data includes sensitive information generated or processed during financial transactions. Such information may be important for banking operations, electronic payments, financial monitoring and the protection of customers against fraud.
The proposed legislation also raises questions about how financial institutions, payment service providers and technology companies handle information when using international platforms, cloud services and cross-border payment systems.
If passed into law, the measure could introduce additional compliance obligations for organisations involved in processing and managing payment-related information in Nigeria.
However, the proposal must still undergo the necessary legislative processes before it can become enforceable law.
The development highlights the growing attention Nigerian lawmakers are giving to data sovereignty, financial security and the regulation of digital payment systems as the country’s financial technology sector continues to expand.
Post a Comment