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July 16, 2025

Nigeria’s Data Is the New Oil – But Who Owns the Rig?

Nigeria’s Data Is the New Oil – But Who Owns the Rig?

By Precious Nwakama

I’m tired of pretending this isn’t happening. In 2025, data isn’t just “the new oil” – it’s become our entire economy. But here’s the thing that keeps me up at night: while we fought tooth and nail over who controls our actual oil in the Niger Delta, we’re letting tech companies quietly drill into our digital lives without so much as a whisper of protest.

Everyday, millions of Nigerians hand over their most intimate information to apps and platforms like we’re giving out free samples at the market. And to be honest, most of us have no clue what we’re actually giving away.

From that fintech app you use to save money, to the ride-hailing service that knows exactly where you live and work, to the government systems that have your biometric data – they’re all feasting on our information. And here’s the kicker; we’re not even invited to the dinner table.

Another honest truth is that, most Nigerian platforms treat user consent like a formality at best and a joke at worst. You know those endless terms and conditions nobody reads? They’re deliberately written to be as confusing as possible. It’s like signing a contract in a language you don’t speak, then acting surprised when you get screwed over.

I’ve looked at dozens of Nigerian apps and platforms. Many don’t even have proper privacy policies. The ones that do? They’re often so vague they might as well say “we’ll do whatever we want with your data, and there’s nothing you can do about it.”

This isn’t just poor design, it’s deliberate exploitation. And in a country where many people are still learning to navigate digital spaces, this feels downright predatory.

Here’s what really gets me angry; we’re watching history repeat itself, and we’re too distracted by the shiny new tech to notice.

Our data – the raw material of the digital economy – is being extracted from Nigeria and shipped off to foreign servers faster than you can say “cloud computing.” Amazon, Microsoft, Google – they’re the new colonial powers, and our data is their cash crop.

Think about it: Nigerian users generate the data, but American and European companies control the infrastructure that processes it. We’re creating the wealth, but they’re setting the rules about how it gets used. Sound familiar?

The worst part? Once our data leaves Nigerian soil and lands on foreign servers, our laws become meaningless. We’ve basically handed over our digital sovereignty without a fight.

Instead of celebrating every new app launch or digital initiative, maybe we should be asking some uncomfortable questions:

Why are we okay with building our entire digital future on infrastructure we don’t control? Why aren’t we demanding that Nigerian data stays in Nigeria? Why are we letting foreign companies make billions off our information while we get nothing in return?

And here’s the million-dollar question; if data really is the new oil, shouldn’t Nigerians own the refineries?

We have brilliant minds in this country. We have the talent to build world-class data infrastructure. What we lack is the political will to demand digital sovereignty and the courage to say no to convenient but exploitative arrangements.

We stood up to traditional colonialism. We fought for control of our oil resources. Now it’s time to fight for control of our digital resources.

This isn’t just about privacy, it’s about power. It’s about who gets to shape Nigeria’s digital future. It’s about whether we’ll be partners in the digital economy or just another source of cheap raw materials.

The drilling has already started. The question is: are we going to let them keep all the oil, or are we finally going to demand our share?

You want to know what’s really frustrating? We actually have a law on the books – the Nigeria Data Protection Act (NDPA) from 2023. On paper, it looks decent, however, in reality, it’s about as effective as a chocolate teapot.

I’ve been in this industry long enough to see how companies treat data protection laws. Most Nigerian startups and even established players look at NDPA compliance like it’s optional homework. They either ignore it completely or treat it like a box-ticking exercise to make investors happy.

And why shouldn’t they? The enforcement is practically non-existent. While European companies are getting slapped with million-dollar fines under GDPR, Nigerian companies are operating like it’s the wild west. I can count on one hand the number of companies that have been seriously penalized for data breaches here. The message is crystal clear: violate user privacy all you want cos nobody’s watching.

So to know the craziest part of all of these, our own government is the biggest offender. NIMC, NIMR, and other government platforms are hoarding citizen data with zero transparency. They’re the referee and the player in the same game. How’s that supposed to work?

Listen, if you’re building products in Nigeria’s tech space, know that this isn’t just about avoiding legal trouble anymore, but it is about whether you want to be part of the problem or part of the solution.

I’m talking directly to you – the product managers who design data collection flows, the developers who build these systems, the founders who set the vision, – stop pretending that user data is your God-given right to exploit.

Here’s the brutal truth, if you keep treating users like walking ATMs for data, you’re going to get burned. Maybe not today, maybe not tomorrow, but eventually. Users are getting smarter, regulators are getting serious and when the reckoning comes, your reputation won’t survive it.

But here’s the flip side, there’s a massive opportunity staring us in the face. Imagine being the platform that actually respects user privacy. Imagine being the company that explains its data practices in plain English instead of legal gibberish. In a market full of data vampires, being the good guy isn’t just ethical, it’s profitable.

First, we need to stop begging foreign companies to store our data. Nigeria has some of the brightest minds in tech. We can build our own cloud infrastructure. We can create our own data centers. We just need the political will to invest in digital sovereignty instead of digital dependence.

Second, the NDPA needs to grow some teeth. I want to see companies getting fined, I want to see public naming and shaming, I want violators to actually fear the consequences of playing fast and loose with user data.

Third, we need to stop treating users like fools. Consent should mean something. Privacy policies should be readable by actual humans, not just lawyers. And users should be able to change their minds without jumping through hoops.

Finally, everyone building tech products in Nigeria needs a reality check on data ethics. This isn’t just about compliance, it’s about building products that don’t exploit the people who use them. Here’s what keeps me up at night: we’re at a crossroads. We can either take control of our digital destiny, or we can keep sleepwalking into digital colonialism.

Nigeria’s digital future is being written right now, in the code being deployed, the policies being signed, and the data being collected. We are not just users in this story, we are the story. Our lives, our choices, our patterns, our dreams, are all being turned into products and profits.

But here’s the thing about data, it’s not just valuable, it’s powerful and power should belong to the people who create it. If we don’t grab control of this digital oil rig now, someone else will. And they won’t give it back.

The question isn’t whether we can afford to fight for our data rights. The question is whether we can afford not to.

About the Author: Precious Nwakama is a product and technology professional passionate about data ethics, user-centered design, and Africa’s digital sovereignty. He is also the Founder and CEO, Obimotech