The Nigerian data protection watchdog says it has launched a full scale investigation of Optasia, the parent company of Nairtime Nigeria Ltd, over alleged data privacy breaches against Nigerians.
Dr. Vincent Olatunji, National Commissioner and CEO of Nigeria Data Protection Commission (NDPC) ordered the full-scale investigation into the data processing activities of Optasia, which operates in Nigeria as Nairtime Nigeria Ltd, Bamigboye, NDPC’s Head of Legal, Enforcement & Regulations says in a statement seen by Technology Times.
“This investigation,” the Nigerian data protection regulator says, “was triggered by a pattern of suspected non-compliant data processing which was discovered during routine regulatory oversight of data controllers and data processors of major importance.”
NDPC hinted that beyond Optasia and its Nigerian subsidiary, its data privacy investigations will expand. “The investigation of credit scoring activities covers the way financial institutions, telecommunication companies, insurance companies among others process personal data of citizens for various purposes,” according to the Nigerian agency.
NDPC: Data privacy probe to expand beyond Optasia, Nairtime
Optasia, founded by Bassim Haidar, a prominent Nigerian-born Lebanese businessman, who doubles as CEO of the company focusing on mobile financial services and fintech business with operational footprints across Nigeria, South Africa and the United Arab Emirates (UAE).
Nigeria’s NDPC expresses “grave concern” over the Nairtime parent company’s alleged use of technologies that invaded the privacy of Nigerians for its services across marketing, credit scoring and other financial solutions in the country.
“The Commission notes with grave concern that Optasia deploys privacy invading technologies to process personal data for the purposes of marketing, credit scoring and other financial solutions,” according to the Nigerian regulator.
According to the Nairtime parent company, its operations across Nigeria, South Africa and United Arab Emirates (UAE) provide “solutions to mobile network operators (MNOs), mobile wallet operators and financial institutions, enabling them to tap into the vast potential of underserved markets.”
The company claims that its micro lending solutions “offer a gateway to new business areas and monetization opportunities while promoting financial inclusion. With our AI-led platform, we process and analyze consumer behavioral data, enabling efficient credit decisioning and empowering financial empowerment.”
The Nairtime parent further claims that its platform empowers partners to explore micro lending, airtime advance and data monetization opportunities will enable them to “navigate the diverse landscape of financial services with ease.”
According to the company, “From micro and nano consumer lending to finance solutions for SMEs, Optasia’s B2B2X platform covers a broad range of financial services, all underpinned by AI-led credit scoring to effectively manage risk. We service the entire product lifecycle, from marketing and credit scoring to distribution and collection. By starting with raw, unstructured data, our platform builds individual credit profiles that refine in real-time as new data becomes available, enabling our partners to make informed choices and expand financial inclusion to previously unbanked populations.”
NDPC hinted that beyond Optasia and its Nigerian subsidiary, its data privacy investigations will expand. “The investigation of credit scoring activities covers the way financial institutions, telecommunication companies, insurance companies among others process personal data of citizens for various purposes,” according to the Nigerian agency.
Dr Olatunji, the National Commissioner further “enjoins data controllers and data processors of major importance who rely on third parties as mediums through which the personal data of the Nigerian populace may be processed to ensure that such third parties are duly registered with the Commission. This measure will ensure accountability, strengthen data security architecture and protect Nigeria’s data sovereignty.”
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