NDPC Probes Lotus Bank, UNILAG over ‘Unlawful’ Use of Students’ Data to Open Accounts

The Nigeria Data Protection Commission (NDPC) says it has commenced a forensic investigation into the University of Lagos (UNILAG), Lotus Bank and Hackerbella Ltd over alleged violations of data protection laws.

Babatunde Bamigboye, head of legal, enforcement and regulations at the commission, disclosed this in a statement on Wednesday in Abuja.

Bamigboye said the investigation followed public complaints alleging that students’ personal data were used to open bank accounts without lawful basis.

He said Vincent Olatunji, national commissioner of the NDPC, directed the investigation team to conduct a comprehensive assessment of the circumstances surrounding the collection, use and disclosure of the affected students’ personal data.

The official said the probe would also determine the roles and responsibilities of UNILAG, Lotus Bank and Hackerbella in the alleged processing of the data.

According to Bamigboye, the investigation will assess the parties’ compliance with obligations under the Nigeria Data Protection Act, 2023.

“The investigation will, among others, cover Data Protection Impact Assessments (DPIAs), the lawfulness and transparency of any credit scoring or profiling activities, and the use of automated decision-making systems,” he said.

“It will also examine the adequacy of privacy notices, data-sharing arrangements, lawful bases for processing, data minimisation, purpose limitation, retention policy, and appropriate technical and organisational safeguards for data subjects’ rights.”

Bamigboye said the investigation would further examine potential risks posed to the rights and freedoms of the affected students.

He said institutions entrusted with the personal data of students, staff and other members of their communities have a responsibility to ensure that such information is processed lawfully, fairly, transparently and securely.

The NDPC official also warned educational institutions that had yet to comply with the commission’s existing data protection directives to do so.

Bamigboye said compliance with data protection regulations was essential to protecting the rights and freedoms of data subjects and promoting responsible data governance in the education sector.