Moniepoint, Etranzact, Chams, and Visa  may face steep fines as NDPC begins data privacy probe

Nigerian fintech giants Moniepoint and Chams Plc, along with payments processor Etranzact International Plc and the local unit of Visa Inc., are under investigation for alleged data privacy breaches that could cost them up to 2% of their annual revenue.

Nigeria’s Data Protection Commission (NDPC) is scrutinising the firms as part of a sweeping compliance review that targets 1,368 companies, signalling a major enforcement test of the country’s new data protection law. The investigation, contained in a list seen by Condia, places some of the biggest names in Africa’s largest economy at significant financial risk.

The four companies are at the heart of the probe due to their systemic importance and access to vast amounts of sensitive user data. Moniepoint is a key player in the nation’s booming agent banking network, while Chams has a long history of managing national identity and biometric projects for the government. Etranzact, a pioneer in Nigeria’s digital payments space, and global behemoth Visa, are also central to the country’s financial infrastructure.

Under the Nigeria Data Protection Act of 2023, companies found in violation face the greater of a N10 million fine or a penalty equal to 2% of their gross revenue from the preceding year. Regulators can also compel firms to pay compensation to affected individuals and surrender profits earned from the violation.

The scale of the investigation, however, has raised questions about the regulator’s capacity. The list is equally dominated by smaller financial institutions, particularly microfinance banks.

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“It makes the entire exercise look impractical,” said one industry insider who remarked privately. “The NDPC simply doesn’t have the manpower to chase all of them.”

The commission investigates complaints filed by the public and allows the accused companies to disprove any wrongdoing before making a final ruling.

As of now, representatives for Moniepoint, Etranzact, Chams, and Visa have not made public comments on the matter.