Lotus Bank
Nigeria
The Nigeria Data Protection Commission (NDPC) launched a forensic investigation into the University of Lagos (UNILAG), Lotus Bank, and technology firm Hackerbella Ltd on Aug 12, 2026. Public complaints alleged that students' personal data were used to open bank accounts without their knowledge or consent. NDPC National Commissioner Vincent Olatunji directed investigators to assess how all three parties collected, used, and shared the affected data.
The inquiry will measure each organization's conduct against the Nigeria Data Protection Act, 2023. Investigators will also examine data protection impact assessments, the lawfulness of any credit scoring or profiling activities, and the use of automated decision-making systems. The NDPC used the announcement to warn other educational institutions to comply with existing data protection directives.
- Highlights data protection risks in embedded banking partnerships with non-financial institutions
- May prompt stricter consent requirements for account-opening processes involving third-party data sources in emerging markets
- Demonstrates regulatory willingness to investigate banks in partnership data misuse cases
- NewsLegit.ng