Nigerian companies are allocating more than 30 percent of their annual information technology (IT) budgets to privacy and data protection measures, according to a new industry report that underscores the rising importance of cybersecurity in corporate governance.
The report, released on Monday by consultancy firm DataPro Insights, shows that organisations in key sectors such as banking, telecommunications, and e-commerce are significantly increasing investments in data privacy tools, compliance frameworks, and employee training to safeguard customer information.
Analysts attribute the trend to stricter regulatory requirements, including the Nigeria Data Protection Act signed into law in 2023, as well as the growing risks of cyberattacks and data breaches.
“Companies now understand that protecting customer data is no longer optional—it is central to business sustainability and consumer trust,” said DataPro Insights’ Lead Analyst, Funmi Adeyemi. “Allocating more than 30 percent of IT budgets to privacy protection demonstrates how seriously Nigerian firms are taking this issue.”
The report also revealed that Nigerian businesses are expanding the use of advanced technologies such as encryption, multi-factor authentication, and cloud-based security systems. In addition, many firms have begun appointing Data Protection Officers (DPOs) and setting up dedicated compliance units.
Industry experts note that the investment surge reflects both a defensive strategy against cyber threats and a proactive effort to meet international best practices, particularly for firms seeking to attract global partners or investors.
Despite the progress, the report warned that smaller enterprises still lag in compliance due to limited resources, exposing them to potential penalties and reputational risks.
Cybersecurity professionals have urged the government to strengthen support systems for small and medium-sized businesses to ensure that data protection standards are upheld across the entire economy.
