In the ever-evolving energy sector, oil and gas companies, particularly those operating across Africa face increasing pressure to demonstrate robust corporate governance practices. With global scrutiny intensifying around climate commitments, ESG compliance, and stakeholder accountability, governance in the oil and gas industry is no longer a box-ticking exercise. It is a strategic imperative.

Governance consulting has thus emerged as a powerful lever to realign boardroom behavior with global expectations fostering trust, enhancing transparency, and preparing firms for a sustainable future. But what does this alignment actually look like, and how can African energy companies position themselves to lead rather than follow?

The Governance Gap in Oil & Gas

Globally, investors, regulators, and civil society are demanding more transparent, ethical, and forward-looking governance practices especially in extractive industries with high environmental and social impact. Yet, in many African markets, governance frameworks remain outdated, compliance-focused, and inward-looking. According to the African Energy Chamber’s State of African Energy 2023 report, “less than 30% of African oil and gas companies have integrated climate risk into board-level discussions, despite mounting investor pressure.”

Similarly, the OECD found in its report on extractive sector governance that “only 35% of extractive industry boards disclose their criteria for director independence, and less than 10% include ESG competencies in board selection.” These numbers highlight a major governance gap that presents both a risk and an opportunity for boards seeking international capital or partnerships.

Global Best Practices for Board Governance in Oil & Gas

To meet global expectations, governance consulting for the sector typically focuses on these five pillars:

1. Board Composition and Independence

• • • • Recruit directors with diverse expertise including in sustainability, digital transformation, and stakeholder engagement.
      • Establish clear independence standards and rotate board members regularly.

According to Spencer Stuart’s 2024 Global Board Index, energy firms with >50% independent directors had 25% higher investor confidence scores.

2. Risk Oversight and Scenario Planning

• • • • Embed geopolitical, climate, and technology disruption scenarios into board discussions.
      • Set up separate committees for ESG, HSE (Health, Safety & Environment), and risk.

3. Disclosure and Transparency

• • • • Align reporting with global frameworks such as TCFD, GRI, and SASB.
      • Go beyond financials, disclose board evaluations, sustainability metrics, and community engagement efforts.

4. Stakeholder-Centric Strategy

• • • • Include stakeholder voices in strategy formulation, especially host communities and regulators.
      • Adopt Integrated Reporting to capture value beyond profits.

5. Board Effectiveness and Evaluation

• • • • Conduct independent annual board evaluations.
      • Provide continuous training for directors on emerging issues in governance, technology, and ESG.

Governance Reform Case Studies

The following table compares several notable governance reform initiatives in oil and gas companies, highlighting the triggers, changes made, and impacts:

Company (Country)	Trigger for Reform	Governance Changes Implemented	Impact/Outcome
Petrobras (Brazil)	2014 “Lava Jato” corruption scandal exposed political meddling.	New laws mandated internal audit units and statutory audit committees, mandatory codes of conduct, and merit-based board appointments. Petrobras also separated political influence from its governance.	Investor confidence gradually restored. By 2019 Petrobras’s stock rebounded (from ~USD 3.80 in 2016 to >USD 15 by late 2019). Enhanced transparency and controls reduced future corruption risk.
NNPC Limited (Nigeria)	2025 Government resolution dissolved the existing board and management, citing poor governance.	A new board of seasoned industry professionals was appointed, emphasizing diverse expertise and transparent oversight. The board’s mandate includes optimizing assets, restoring investor confidence, and preparing for possible public listing.	Industry observers expect “dramatic improvement in corporate governance” and efficiency. The shake-up was widely hailed as a step toward world-class governance, though outcomes depend on continued independence from political interference.
Sonangol (Angola)	2017 anti-corruption drive by new government targeted SOEs (including Sonangol).	Most SOE boards were replaced. Sonangol’s regulatory and concessionaire functions were split off into a new national oil agency. Laws now require publication of audited annual reports for major SOEs. Sonangol has been asked to divest many non-core assets.	Early signs of greater transparency: audited accounts are publicly filed, and governance structures tightened. However, progress has been gradual; Sonangol remains under scrutiny, and the true impact on corruption and efficiency will take more time.

What Governance Consulting Offers

Governance consulting firms play a critical role by helping oil and gas clients:

• • Assess Gaps using maturity models and board diagnostic tools.
  • Design Governance Frameworks tailored to national regulations and global benchmarks.
  • Train Boards and Executives in ESG governance, ethics, digital strategy, and stakeholder management.
  • Support Compliance with international standards and prepare clients for ESG-linked capital raises or partnerships.

As boardroom conversations shift from quarterly earnings to long-term resilience, governance consultants serve as translators, helping local companies speak the language of global capital, climate action, and inclusive growth.

Conclusion

Governance is no longer a shield, it’s a sword. African oil and gas companies that move beyond compliance and embrace modern governance will not only mitigate risk but unlock strategic opportunities. From attracting climate-conscious investors to improving stakeholder trust and international credibility, board reform is fast becoming a business advantage.

As McKinsey noted in its 2023 report on African Energy Transition, “Governance maturity will determine which firms survive the global energy shift and which ones disappear.”

The stakes are high, but so are the rewards. The future belongs to companies bold enough to govern differently.

At Stransact Chartered Accountants, we work with boards and executive teams across the oil and gas sector to strengthen governance practices and meet global expectations. Our tailored consulting approach helps clients align board structures, disclosures, and ESG oversight with international standards, while staying grounded in local realities.

Reach out to us at [email protected] to explore how we can support your governance transformation journey.

Nigeria’s manufacturing sector, once a cornerstone of the nation’s economy, is currently facing significant challenges. The sector’s contribution to the Gross Domestic Product (GDP) has declined from 16.04% in Q4 2023 to 12.68% in Q2 2024, marking a 20.95% decrease over six months. This downturn underscores the urgent need for process optimization to enhance efficiency and competitiveness.

The High Cost of Inefficiency

Operational inefficiencies are costing Nigerian manufacturing firms millions annually. A study focusing on manufacturing firms in Rivers State revealed a significant positive correlation between process optimization models and operational efficiency. Specifically, real-time optimization and maintenance optimization were found to enhance cost minimization and capacity utilization.

Moreover, the adoption of Artificial Intelligence (AI) technologies has shown promise in optimizing manufacturing processes. Research indicates a substantial positive correlation between AI adoption and manufacturing efficiency, with AI facilitating enhancements in operational analytics.

Read more: Navigating Global Challenges Affecting Nigeria’s Manufacturing Industry 

Key Challenges Hindering Optimization

Several factors contribute to the inefficiencies plaguing Nigeria’s manufacturing sector:

• Inadequate Infrastructure: Unreliable electricity supply and poor transportation networks disrupt production schedules and increase operational costs. Nigeria’s national power grid frequently collapses, leading to significant economic losses estimated at $29 billion annually.
• Limited Technological Adoption: Many firms are yet to integrate modern technologies like AI and automation, which are crucial for streamlining operations and improving product quality. A study analyzing the impact of AI adoption on business process automation and competitiveness in the Nigerian manufacturing industry found that AI technology significantly improves operational efficiency and competitive advantage for companies.
• Skilled Labor Shortage: There is a deficit of adequately trained personnel capable of operating advanced manufacturing equipment and implementing process improvements. The Federal Government has highlighted that Nigeria has only 50% of the skilled workforce needed in the power sector, reflecting a broader issue of skilled labor shortages across industries.
• Policy and Regulatory Constraints: Unfavorable government policies and regulatory bottlenecks hinder the ease of doing business and discourage investment in process optimization initiatives. Importers report erratic application of customs regulations, lengthy clearance procedures, costly port docking and unloading costs, and corruption, making operations at Nigerian ports among the most expensive in the world.

The Path Forward

To reverse the declining trend and unlock the sector’s potential, Nigerian manufacturing firms should consider the following strategies:

• Invest in Technology: Embrace AI and other advanced technologies to enhance operational analytics, predictive maintenance, and overall efficiency.
• Enhance Workforce Skills: Implement training programs to upskill employees, ensuring they can effectively utilize new technologies and methodologies.
• Infrastructure Development: Collaborate with government and private sectors to improve infrastructure, particularly in power supply and logistics.
• Policy Advocacy: Engage with policymakers to create a more conducive regulatory environment that supports manufacturing growth and innovation.

By addressing these challenges and embracing process optimization, Nigerian manufacturing firms can significantly reduce losses, improve efficiency, and contribute more robustly to the nation’s economic growth.

Read more: AI Adoption: Redefining Efficiency and Innovation in Your Business

Conclusion

Process optimization in Nigeria’s manufacturing sector is no longer a luxury—it’s a necessity. As firms navigate with outdated systems, rising operational costs, and global competition, the cost of inefficiency continues to climb. By embracing digital tools, upgrading infrastructure, and adopting data-driven strategies, manufacturers can unlock new levels of productivity and profitability.

At Stransact Chartered Accountants, we support manufacturing businesses in identifying inefficiencies, optimizing operations, and achieving sustainable growth. From strategic audits to digital transformation advisory, our team helps you build a smarter, leaner, and more competitive enterprise.

Need help optimizing your manufacturing processes? Reach out to us at [email protected] for expert guidance.

In today’s dynamic Nigerian business environment, third-party vendors are indispensable to operational efficiency and strategic growth. From logistics providers navigating the complexities of urban transportation to technology partners driving digital transformation, vendors enable organizations to scale and compete effectively. However, increased reliance on external service providers introduces significant risks, ranging from cybersecurity threats and regulatory non-compliance to financial instability and reputational harm. In a market as competitive and regulated as Nigeria’s, such vulnerabilities can have far-reaching consequences.

Effective Third-Party Risk Management (TPRM) is therefore critical to ensuring business continuity, maintaining stakeholder trust, and achieving compliance with both domestic and international standards. This article examines the unique challenges Nigerian businesses face in managing vendor risks and offers actionable strategies to build a resilient, compliant, and value-driven third-party ecosystem. Importantly, this is not a challenge unique to Nigeria.

Globally, the TPRM market is experiencing rapid growth—projected to expand from US$6.1 billion in 2024 to US$16.97 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 18.6%. This growth underscores a broader recognition of the critical role TPRM plays in modern enterprise risk management.

Why Is TPRM Becoming a Big Deal in Nigeria?

Nigeria’s economy remains oil-driven, with emerging sectors like fintech and agriculture increasingly reliant on third-party vendors to deliver efficiency and scale. With $12.2B in development projects underway (World Bank, 2024), vendors are central to infrastructure and service delivery. However, persistent challenges such as corruption (ranked 154/180 globally), insecurity, and infrastructure deficits amplify third-party risk. Recent reforms, such as fuel subsidy removal and naira devaluation, have raised operating costs. In this context, the pressure to reduce costs may incentivize unethical practices, such as bribery or regulatory shortcuts. These dynamics underscore the critical importance of a robust Third-Party Risk Management (TPRM) framework for organizations seeking to operate with integrity and resilience in a complex and evolving environment.

A 2024 industry survey indicated that approximately 80% of Nigerian businesses rely on third parties for essential operations, yet around 65% lack comprehensive third-party risk management (TPRM) frameworks. The rapid growth of digital banking, e-commerce, and international trade has heightened vendor-related risks, compounded by Nigeria’s challenges with inconsistent regulatory enforcement, inadequate infrastructure, and rising cybersecurity threats.

For professional services firms in Nigeria specializing in tax, audit, and regulatory compliance, TPRM is both a challenge and an opportunity to help clients navigate this complex landscape. By addressing local nuances, such as Nigeria’s tax regimes and anti-corruption laws, firms can position themselves as strategic partners in building resilient vendor ecosystems.

Read more: Compliance as a Tool for Risk Management: Safeguarding Your Business in an Evolving Landscape

Understanding Common Third-Party Risks in Nigeria

Knowing the risks that come from your vendors in Nigeria is key to good third-party risk management. Here are the main risks you should watch out for:

1. Cybersecurity and Data Privacy Risks

Vendors operating in high-risk sectors such as fintech, logistics, and health tech often introduce significant cybersecurity and data privacy exposure. In Q1 2023, over 82,000 cyberattacks were recorded in Nigeria’s financial sector alone, largely attributed to outdated infrastructure and poor vendor security practices (NIBSS, 2023). Despite mandatory compliance with the Nigeria Data Protection Regulation (NDPR), many SMEs lack the technical capability to meet baseline data protection standards. This creates systemic vulnerabilities for businesses dependent on external service providers.

A SOC 2 audit is essential for assessing vendor controls against international benchmarks across security, availability, and confidentiality. It enables B2B organizations to validate trust, reduce regulatory exposure, and maintain data integrity in a volatile environment.

2. Regulatory and Compliance Risks

Nigeria’s regulatory landscape is complex, with agencies like the Federal Inland Revenue Service (FIRS), Corporate Affairs Commission (CAC), and Economic and Financial Crimes Commission (EFCC) enforcing strict compliance. Vendors failing to remit taxes, such as Value Added Tax (VAT) or Company Income Tax (CIT), can expose businesses to penalties. Vendors may engage in bribery to secure contracts, exposing businesses to penalties. Oil sector vendors often face scrutiny for non-compliance with the Nigerian Extractive Industries Transparency Initiative (NEITI).

3. Financial and Operational Risks

Nigeria’s macroeconomic instability driven by persistent naira depreciation and projected inflation of 26.5% in 2025 (IMF, 2025) amplifies vendor financial risk. Insolvency or cash flow constraints among vendors can result in service disruptions, contract breaches, or unfulfilled deliveries. Operational challenges such as unreliable power supply, port congestion, and rising fuel and logistics costs further strain vendor performance. According to the Presidential Enabling Business Environment Council (PEBEC, 2024), Nigeria ranks low on key ease-of-doing-business metrics, with infrastructure inefficiencies significantly inflating operational costs.

To maintain supply chain stability, organizations must assess vendor financial health, monitor operating environments, and embed financial and operational risk metrics into TPRM frameworks.

4. Reputation and Ethical Risks

Nigerian consumers and regulators increasingly prioritize environmental, social, and governance (ESG) standards. Vendors with poor labor practices, such as non-compliance with the National Minimum Wage Act, or environmental violations, like illegal waste disposal, can damage your brand. A 2024 social media backlash against a beverage company in Nigeria, linked to a vendor’s unethical labor practices, highlighted this risk.

5. Security and Supply Chain Risks

Nigeria’s security landscape continues to pose material risks to third-party operations, particularly in logistics and raw material sourcing. Insurgencies in the North and local disturbances in the Middle Belt, key regions for agricultural and mineral inputs, frequently disrupt supply chains, leading to delays, increased costs, and operational downtime. In the South, pipeline vandalism and piracy in the Niger Delta have also impacted transportation and manufacturing throughput. Coupled with regulatory enforcement under the Petroleum Industry Act (PIA), businesses face heightened exposure to compliance breaches and sanctions via the NMDPRA.

To mitigate disruptions and ensure continuity, organizations must implement rigorous vendor due diligence, diversify supply bases, and conduct periodic compliance and security audits.

Read more: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

Why Vendors Pose Strategic Risks in Nigeria?

Vendors in Nigeria face tough conditions like poor infrastructure, ambiguous regulations, and economic challenges. This makes managing them tricky due to:

• Limited Vendor Due Diligence Capacity: Many businesses lack the tools, data access, or internal capabilities to assess vendor financial health or compliance with legal and regulatory standards

• High Informality in Vendor Ecosystem: A significant portion of vendors operate without formal registration or licensing, thereby complicating verification, onboarding, and background checks.
• Weak Contract Enforcement Mechanisms: Prolonged litigation timelines and inconsistent enforcement in Nigerian courts reduce the effectiveness of contracts as a risk mitigation tool.
• Vendor Concentration Risk: Overdependence on a single or limited vendor pool increases exposure to service disruptions, especially in volatile sectors like logistics and energy.

To manage these risks, companies need a special approach that fits Nigeria’s business scene.

Staying Ahead with a Strong TPRM Framework

A strong third-party risk management (TPRM) plan helps Nigerian businesses avoid problems with vendors, and here’s how to create one:

1. Conduct Rigorous Due Diligence: Before onboarding any vendor—and at regular intervals thereafter—assess their financial, legal, and operational standing to reduce exposure:

• Financial Health: Verify Corporate Affairs Commission (CAC) registration and review SOC 1 reports where applicable.
• Data Security: Confirm NDPR compliance, presence of internal control frameworks, and request SOC 2 assurance where necessary.
• Tax Status: Ensure vendors are registered with the Federal Inland Revenue Service (FIRS) and hold valid tax clearance certificates.
• Regulatory & ESG Compliance: Review adherence to NESREA environmental guidelines and national labour laws.
• Continuous Monitoring: Reassess after major changes—such as FIRS tax filings, NDPR updates, regulatory reforms, or ESG reporting cycles.

When in doubt, engage a qualified tax, legal, or audit advisor to support due diligence and compliance efforts.

2. Draft Robust Contracts

• Tax Compliance: Ensure vendor tax compliance is up to date, request Make sure vendors pay VAT and Withholding Tax on time, with penalties if they don’t.
• Data Protection: Vendors must follow Nigeria’s data laws (NDPR) and report any data leaks within 72 hours.
• Sustainability: Add rules to support Nigeria’s green and ethical banking standards.

Note: Always work with Nigerian legal experts to make contracts valid and enforceable locally.

3. Foster a Compliance-First Culture: Finance, HR, and procurement must spot vendor risks like tax evasion and data privacy. HR should check vendors during onboarding, while workshops on anti-corruption laws keep teams aware and compliant.

4. Prepare for Crisis Management: Crisis events, whether regulatory, operational, or reputational can originate from third-party failures. Embedding crisis management within your TPRM framework helps maintain business continuity.

• Business Continuity & Disaster Recovery: Develop and regularly test response plans for data breaches, vendor failures, and compliance issues.
• Regulatory Response: Set clear protocols for managing FIRS penalties or NDPR violations.
• Supply Chain Resilience: Identify high-risk vendors and regions and maintain pre-vetted backup suppliers.
• Reputation Management: Align with corporate communications and PR teams to manage external messaging during a crisis. Timely, transparent communication helps preserve brand integrity and stakeholder confidence.

Crisis preparedness is not an afterthought; it is a strategic imperative. By proactively planning for disruptions, businesses can sustain operations, protect reputation, and maintain regulatory standing even under pressure.

The Role of Tax, Audit, and Regulatory Professionals in Strengthening TPRM in Nigeria

Tax, audit, and regulatory experts play a pivotal role in building resilient Third-Party Risk Management (TPRM) frameworks in Nigeria:

• Tax Compliance Oversight: Ensure vendors meet their obligations under the Federal Inland Revenue Service (FIRS), Lagos State Internal Revenue Service (LIRS), and Petroleum Industry Act (PIA).
• Independent Assurance: Leverage audit expertise to conduct vendor audits, validate tax remittances, assess financial health, and uncover potential risks.
• Regulatory Alignment: Navigate complex legal frameworks such as the NDPR, NESREA, EFCC, etc. requirements to ensure full vendor compliance.
• Strategic People Management: Integrate human capital considerations into vendor oversight, aligning labor practices with Nigerian employment laws and ESG objectives.

Read more: FinTech: Credit Management as a Pathway to Profitability

Conclusion

Vendors remain central to Nigeria’s economic growth, but without adequate governance, they can introduce significant operational, financial, and reputational risks. A well-structured TPRM framework anchored on due diligence, enforceable contracts, digital monitoring tools, and continuous evaluation empowers organizations to mitigate third-party risks while unlocking strategic value.

By leveraging multidisciplinary expertise across tax, audit, and regulatory domains, Nigerian businesses can build secure, compliant, and future-ready vendor ecosystems that align with evolving expectations around FIRS compliance, data protection (NDPR), and ESG performance.

At Stransact, we partner with organizations to navigate the intricacies of local compliance requirements. Our integrated approach helps clients align vendor operations with regulatory mandates and organizational goals.

Reach out to us at [email protected] to learn how we can help you build a resilient third-party management strategy.

In Nigeria’s increasingly regulated business environment, payroll compliance is far more than an administrative requirement—it is a legal imperative and a cornerstone of sound corporate governance. Beyond the timely payment of salaries, it encompasses adherence to a complex web of tax laws, pension obligations, and statutory contributions.

Non-compliance can expose organizations to significant financial penalties, reputational risks, and operational disruptions. For forward-thinking businesses, investing in robust payroll compliance systems is not just about meeting regulatory expectations—it is about protecting long-term value and enabling sustainable growth.

Why Payroll Compliance Matters

Payroll compliance ensures that organizations align with Nigeria’s labor, tax, and other employee related regulatory laws. Regulatory bodies such as the Federal Inland Revenue Service (FIRS), States Internal Revenue Services (SIRS), National Pension Commission (PenCom), Nigeria Social Insurance Trust Fund (NSITF), Industrial Training Fund (ITF), and National Housing Fund (NHF) all oversee different components of the payroll landscape. 

A slip in one area can result in sanctions that could have been easily avoided with proper planning and processes.

Common Payroll Compliance Triggers for Sanctions

• Late or Non-Remittance of PAYE Tax: Under the Pay-As-You-Earn (PAYE) scheme, employers are required to deduct personal income tax from employees’ salaries and remit it to the relevant State Internal Revenue Service (SIRS) by the 10th day of the following month. Failure to comply attracts penalties and interest charges.

Penalty: A 10% penalty on the amount due, plus interest at the prevailing Central Bank of Nigeria (CBN) rate (Personal Income Tax Act, 2011)

• Non-Remittance of Pension Contributions: Employers with fifteen (15) or more employees must contribute at least 10% of their employees’ monthly emoluments to the Retirement Savings Account, while employees are required to contribute a minimum of 8% to the same account. These contributions must be made not later than seven (7) working days from the day of salary payment.

Penalty: Non-compliance may attract sanctions from PenCom, including fines and restriction of access to public sector contracts.

• Failure to Register with NSITF: The Employees’ Compensation Act mandates that all employers must register with the NSITF and make monthly contributions. This fund provides compensation for employees who suffer occupational injury, disease or disability.

Penalty: Defaulting employers may face legal action, fines, and exclusion from government tenders (Employee Compensation Act, 2010).

• Inaccurate Payroll Records and Underreporting: Deliberately or mistakenly underreporting employee wages, benefits, or headcount can lead to regulatory scrutiny and heavy penalties. Audits may expose discrepancies between actual wages and what was reported to regulatory bodies.

Penalty: Range from financial penalties to criminal prosecution in cases of tax evasion.

• Non-Remittance to Industrial Training Fund (ITF): Employers with twenty-five (25) or more employees are required to contribute 1% of total annual payroll to the ITF not later than 1^st April of the following year (Business Facilitation Act, 2022).

Penalty: Failure to comply can result in a fine and ineligibility for grants and reimbursements from the Fund (The ITF (Amendment) Act, 2011)

• Misclassification of Workers: Improper classification of employees as independent contractors to avoid tax and pension obligations is another red flag.

Penalty: This can lead to back payments, interest, and penalties when discovered during audits.

• Non-Remittance of National Housing Fund (NHF): Employees are required to contribute 2.5% of their monthly income:
  • This contribution is mandatory for employees in the public sector in Nigeria.
  • While it is optional for employees in the private s3ector in Nigeria.

Penalty: Any employer who defaults, neglects or refuses to make contributions to the Fund as specified by the Act shall be liable to fine or imprisonment (National Housing Fund Act)

How to Avoid Payroll Compliance Pitfalls

• Stay Informed and Updated: Regulations change frequently. Subscribe to updates from regulatory bodies or work with compliance professionals to stay current.
• Automate Payroll Processes: Use payroll software that is updated with current tax rates and deadlines. Automation reduces the risk of human error and missed remittances.
• Conduct Regular Internal Audits: Quarterly or biannual payroll audits can help detect and fix issues before they escalate.
• Engage Professional Advisors: Working with tax and payroll compliance experts like Stransact ensures that your payroll processes align with local laws and best practices.
• Properly Document Employee Contracts: Ensure all employment terms are legally documented and that payroll records reflect the accurate compensation and benefits as stipulated.

Read more: Are You Being Over-Taxed? How to Spot Errors in Your PAYE Deductions

Conclusion

Payroll compliance in Nigeria is a non-negotiable responsibility for businesses. While the regulatory landscape may be complex, the consequences of non-compliance ranging from fines to business disruption are far more costly. By understanding the common triggers for sanctions and implementing proactive compliance strategies, businesses can safeguard themselves against unnecessary risks.

At Stransact Chartered Accountants, we help organizations stay ahead of compliance requirements. Our dedicated professionals provide tailored payroll and tax advisory services, helping businesses avoid penalties, stay compliant, and focus on growth.

📩 Need help navigating payroll compliance? Reach out to us at [email protected] for expert guidance.

Nigeria’s headline inflation raced to 34.8% in December 2024—its highest level since 1996—driven largely by food prices and energy shocks. Meanwhile, our once-booming manufacturing sector has seen growth plummet from 38.06% year-on-year in Q4 2023 to a mere 2.92% in Q4 2024. And despite countless reforms, the nation is still behind at 131st out of 190 economies in the World Bank’s Doing Business ranking.

Erratic power supply continues to force industrial plants to rely on diesel generators, now costing up to US$0.50/kWh—over six times the theoretical grid tariff of US$0.08/kWh. This makes it even more economical to import products like cement rather than produce them locally. CEOs are grappling with balance sheets where escalating input costs erode margins rapidly. Foreign exchange losses are mounting, and each unplanned outage further undermines profitability.

If you’re a board member or MD reading this, know this: unless you tackle these inefficiencies now, your factory could be the next headline in an exposé—and your bottom line will continue to be exposed to volatility.

The Hidden Drain: Where Money Disappears

1. Energy Shortages

What’s happening: Grid power meets barely 4,000 MW demand; the rest comes from generators. Most firms pay US$0.40–0.46/kWh for diesel backup, compared to US$0.08/kWh on paper. For a mid-sized plant consuming 500,000 kWh monthly, that’s an extra US$160,000 in fuel costs alone—before factoring in maintenance and spares.

Impact on your P&L: Energy costs can consume up to 30–40% of operating expenses, squeezing working capital and forcing product price hikes that erode competitiveness.

2. Foreign Exchange Volatility

What’s happening: The naira’s poor liquidity and steep devaluations erased ₦792 billion from the books of 16 leading manufacturers in 2023–24 alone. Many firms lack robust hedging strategies, so raw-material imports at N1,650/US$ (parallel market) can suddenly cost N2,000/US$ overnight.

Impact on your P&L: FX losses feed directly into cost of goods sold, creating unpredictable margins and choking investment plans.

3. Supply-Chain Gaps & Inventory Gluts

What’s happening: Leading FMCGs saw input costs jump 121% in H1 2024, largely due to FX pass-through and logistical snarls. Meanwhile, unsold inventory rose by 43% in early 2024, tying up ₦1.24 trillion in working capital.

Impact on your P&L: Excess inventory drives warehousing costs, idle cash, and write-downs, while stock-outs on critical SKUs dent market share.

4. Policy Inconsistency & Regulatory Delays

What’s happening: From sudden export bans to abrupt tariff changes, shifting policies force manufacturers into perpetual catch-up mode. Customs clearance can drag 5–10 days, double regional benchmarks, forcing many to pay demurrage and storage fees.

Impact on your P&L: Unplanned expenses, project delays, and lost customer trust as orders slip.

Practical Strategies for Reversal

Targeted, low-risk pilots can arrest these losses and lay the foundation for scalable improvement. Each approach below has been successfully adopted within similar emerging-market contexts and is ready for rapid adaptation to Nigerian conditions:

Hybrid Energy Micro-Grids with Smart Management

What to do: Combine solar PV, battery storage, and gas-fired generators to cut diesel consumption by up to 30% and guarantee uptime when the grid fails.
How we help:

• Technology Advisory designs and oversees the micro-grid, integrates smart monitoring, and automates controls.
• Audit & Assurance establishes baseline energy KPIs, tracks actual savings, and verifies performance.
• Tax Compliance identifies available capital allowance incentives and optimises gas-to-power tax treatment.

Digital Supply-Chain Enablement

What to do: Deploy cloud-based inventory platforms with real-time demand forecasting and automated replenishment to unlock working capital.
How we help:

• Technology Advisory manages rapid system deployment, ERP integration, and user training.
• Audit & Assurance audits stock accuracy, tightens procurement and warehouse controls, and builds KPI dashboards.
• Tax Compliance optimises customs classifications, VAT recovery, and local-sourcing incentives to cut import duties and FX risk.

Continuous Skills Development & Compliance

What to do: Institute monthly “best-practice” forums, targeted training in quality-control and maintenance, and simple digital compliance-tracking tools.
How we help:

• People & Regulatory Services design curricula, deliver workshops, and liaise with NAFDAC, NERC, and Customs.
• Audit & Assurance conducts mock audits, hazard assessments, and gap-closure reviews to ensure zero major findings.

Policy Engagement and Advocacy

What to do: Convene industry roundtables with government and regulators to secure practical reforms, such as 24-hour customs windows and predictable tariff regimes.
How we help:

• People & Regulatory Services draft position papers, coordinate stakeholder dialogue, and track policy implementation.

Financial Strategies

What to do: Implement layered FX-hedging programmes and tap development-finance or public-private funding for capex projects.
How we help:

• Audit & Assurance validates financial models, business cases, and ROI projections.

Read More: Strengthening Nigeria’s Manufacturing Industry with Independent Internal Audits

Conclusion: Charting a New Course for Nigerian Manufacturing

The margin for error in today’s manufacturing landscape is slimmer than ever. Escalating input costs, currency volatility, and shifting regulatory requirements demand more than incremental improvements—they require a strategic, integrated response. By deploying rigorously tested, context-specific interventions and partnering with advisors who bring both global best practices and deep local experience, manufacturers can not only arrest profit erosion but also build the foundations for sustained, scalable growth.

At Stransact, we’ve partnered with leading multinationals and fast-growing local champions to deliver precisely this kind of transformation. Our Audit & Assurance teams provide clear, data-driven diagnostics to reveal hidden inefficiencies and compliance gaps. Our Tax specialists optimize fiscal incentives and manage liabilities to improve cash flow. Through Technology Advisory, we implement digital platforms that free up working capital and enhance operational resilience. And our People & Regulatory Services ensure your teams are equipped, compliant, and ready to sustain continuous improvement.

Let us help you turn today’s disruptions into tomorrow’s growth engine. Contact us for a confidential consultation and a custom pilot design. Together, we will lead Nigeria’s manufacturing renaissance—transforming complexity into clarity and delivering measurable, long-term value.

 

Expatriate employment in Nigeria is governed by strict regulatory requirements, including the mandatory submission of Expatriate Monthly Returns (EMR). Companies employing foreign nationals must ensure compliance with the guidelines set by the Federal Ministry of Interior (FMI) and the Nigeria Immigration Service (NIS) to avoid legal, financial, and tax-related penalties.

This article provides an updated guide on managing EMR effectively, incorporating the latest provisions from the Federal Ministry of Interior’s official handbook and clarifying the financial and legal implications of non-compliance.

What is Expatriate Monthly Returns (EMR)?

EMR is a mandatory monthly report that companies must submit to the NIS, detailing the utilization of their approved Expatriate Quota (EQ). It also includes records of expatriates visiting Nigeria, under the Combined Expatriate Residence Permit and Aliens Card (CERPAC). The EMR must contain information such as:

• Personal details of expatriates (name, nationality, passport details)
• Date of arrival and departure
• Residential address in Nigeria
• Work permit or visa details

Companies must file the report at the NIS Headquarters in Abuja, Zonal Offices, and State Command Immigration offices, ensuring all relevant sections receive the documentation.

 

Learn More About Visa Requirements: Navigating Business Immigration in Nigeria

 

Consequences of Non-Compliance with EMR

Failure to submit the EMR as required can expose companies to severe fines, tax liabilities, and business disruptions. Based on the latest regulations:

1. Financial Penalties for Non-Compliance:
   The Nigeria Immigration Act 2015 (section 105 (4b)) stipulates that any corporate body that fails to file EMR is liable for a fine of ₦3 million upon conviction. Repeated offenses can lead to stricter penalties, including suspension or revocation of the company’s expatriate quota approval.

2. Delays in Expatriate Quota Renewal:
   Filing duly endorsed EMRs for at least the last three months is a prerequisite for renewing existing expatriate quota positions or applying for new ones. Without this documentation, the Federal Ministry of Interior will reject any quota renewal application, potentially disrupting business operations.

3. Exposure to Tax Liabilities:
   The Nigerian tax authorities use EMR to track expatriate employees’ presence in the country, ensuring companies fulfill their obligations under the Personal Income Tax Act (PITA). Failing to file EMR could result in:

• Unintended tax liabilities for expatriates wrongly listed as still employed
• Risk of backdated tax assessments and penalties
• Double taxation due to misreported expatriate exits

4. Legal and Immigration Risks:
   Failure to update the NIS about an expatriate’s exit can result in:

• Liability for overstayed work permits
• Scrutiny from law enforcement agencies
• Possible travel bans or deportation orders affecting expatriates and their companies

 

Read More: Are You Being Over-Taxed? How to Spot Errors in Your PAYE Deductions

 

Best Practices for Managing Expatriate Monthly Returns

1. Ensure Timely Submission:
   The EMR must be filed on or before the 10th day of each month for the preceding month. Late submissions may trigger queries, rejections, or investigations.

2. Properly Track Expatriate Arrivals and Exits:
   Companies should maintain a real-time record of expatriates’ movement and update their EMR accordingly. Deletion requests should be promptly submitted to NIS when an expatriate exits employment.

3. Verify Compliance with the Latest Regulations:
   Businesses should periodically review their compliance with the latest immigration and expatriate tax laws, ensuring alignment with the Federal Ministry of Interior’s updated guidelines.

4. Work with Compliance Experts:
   Given the complexities of expatriate management, working with a professional advisory firm can help businesses:

• Ensure full compliance with expatriate regulations
• Avoid penalties and financial risks
• Streamline immigration and tax compliance processes

How Stransact People and Regulatory Services Can Help

At Stransact People and Regulatory Services, we specialize in helping businesses navigate the complexities of expatriate compliance in Nigeria.

Our services include:

• Expatriate Quota Advisory & Compliance
• Preparation & Submission of Expatriate Monthly Returns
• Immigration & Work Permit Processing
• Tax Advisory for Expatriate Employees

Our expert team ensures your company remains compliant, avoiding unnecessary penalties and ensuring smooth business operations.

 

 

Conclusion

Managing Expatriate Monthly Returns (EMR) is not just a regulatory obligation—it’s a critical business function that affects tax, immigration, and operational stability. Companies must stay ahead of compliance requirements to avoid fines, tax risks, and business disruptions.

Need help with EMR compliance? Contact Stransact People and Regulatory Services today. Let’s ensure your business stays on the right side of the law while optimizing expatriate management.

Nigeria’s financial services sector stands at the edge of transformation. With advancements in technology and a growing demand for accessible financial solutions, the time to innovate is now. Despite challenges like low insurance penetration and a significant unbanked population, Nigeria’s vibrant, tech-savvy demographic offers an unparalleled opportunity to redefine financial services delivery.

Imagine insuring your phone in seconds, accessing personalized health plans, or using POS terminals as multi-functional financial tools – all with a few taps on your mobile device. These possibilities are no longer distant dreams but tangible opportunities waiting to be seized. In this article, we explore how financial institutions can harness the power of fintech to enhance service delivery and foster financial inclusion in Nigeria.

 

Read More: From Waste to Wealth: Why Nigerian Business Leaders Must Shift to a Circular Economic Model Today

 

Post-COVID Agility: A New Paradigm in Financial Services

The COVID-19 pandemic reshaped consumer expectations, placing a premium on digital-first services. Today, customers demand the ability to handle transactions, seek support, and explore financial products entirely from the comfort of their homes.

Globally, we’ve seen the rise of remote banking, digital investment platforms, and even teleconsultations for insurance. Yet, many Nigerian financial institutions lag in adopting these customer-centric solutions. With 64 million unbanked adults and widespread dissatisfaction with traditional service delivery, the need for modernization has never been more urgent.

Key Opportunities in Nigeria’s Financial Services

1. Banking: Expanding Financial Inclusion Through Technology

Despite progress in digital banking, 64 million Nigerians—about 32% of the adult population—remain unbanked. Mobile banking apps and USSD services have significantly improved access by enabling users to open accounts, transfer funds, and pay bills without visiting physical branches. However, challenges such as limited digital literacy and inconsistent internet access hinder adoption.

Opportunities:

• AI-Driven Financial Tools: Offer personalized financial planning solutions based on customer data for savings, investments, and budgeting.
• Smart ATMs: Deploy machines capable of instant cash deposits and withdrawals, enhancing user convenience.

 

Read More: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

 

2. Insurance: Making Coverage Affordable and Accessible

Nigeria’s insurance sector remains underdeveloped, with one of the lowest penetration rates globally. As of recent data, insurance penetration in Nigeria is estimated to be around 0.3% of GDP, significantly lower than the global average of over 7%. This indicates a vast untapped market and underscores the need for strategic initiatives to drive growth.

Opportunities

• Leveraging Mobile Apps for Microinsurance: Mobile apps can be used to offer microinsurance products, such as daily health coverage and device insurance. This approach can make insurance more accessible and affordable for the average Nigerian, who may not have the means to purchase traditional insurance policies.
• Telematics for Usage-Based Insurance: Telematics technology can be used to offer usage-based insurance, where premiums are calculated based on actual usage and driving behaviour. This model can make insurance more affordable and personalized for customers.

3. Mortgage and Credit Services: Bridging the Financing Gap

Nigeria’s mortgage market faces barriers such as high-interest rates, complex application processes, and limited access to long-term financing. Post-COVID trends in remote work and homeownership aspirations present a renewed opportunity to rethink mortgage solutions.

Additionally, there is an urgent need to democratize access to loans for house rent, home purchases, and business investments. Many Nigerians are hesitant to take loans due to fears of rejection or challenges in navigating the process. Fintech platforms can address these concerns by integrating seamless loan application processes into mobile apps. With the advent of the BVN system, tracking and monitoring credit scores has become easier, enabling financial institutions to offer more tailored and accessible loan products. Solutions like micro-loans, simplified credit card acquisition, and transparent repayment terms can further empower individuals and businesses.

Opportunities:

• Streamlined Loan Platforms: Enable quick applications and approvals through user-friendly mobile apps.
• Innovative Financing Models: Collaborate with fintech to introduce rent-to-own solutions or micro-loans with transparent repayment terms.
• Blockchain Transparency: Use blockchain to enhance trust and security in property transactions.

 

Read More: Forensic Audits: When and Why Your Business Needs One

 

4. Investment Services: Democratizing Wealth Creation

Investment services in Nigeria are often seen as exclusive to high-net-worth individuals, leaving a significant portion of the population underserved. With only about 2% of Nigeria’s population investing in the stock market, there is a clear need to make investment services more accessible.

Opportunities:

• Creating User-Friendly Platforms for Micro-Investments: Developing platforms that allow individuals to start investing with small amounts can democratize access to wealth creation. These platforms can offer fractional shares, enabling users to invest in high-value stocks with minimal capital.
• Incorporating AI/Robo-Advisors: AI-driven robo-advisors can provide personalized investment advice at a lower cost compared to traditional advisors. These tools can analyze individual financial situations and recommend tailored investment strategies.
  Robo-advisory services are expected to become a $1.2 trillion industry globally by 2024, highlighting their growing importance

Redefining Financial Services in Nigeria

Transitioning from traditional to digital financial services is more than a technological upgrade – it’s about reimagining how financial institutions connect with customers, deliver value, and drive economic growth. By addressing gaps in access and trust while leveraging global best practices, Nigeria’s financial sector can unlock unprecedented growth.

Are you ready to take your financial services to the next level? At Stransact, we specialize in guiding organizations through transformative journeys. Whether you’re looking to digitise operations, enhance customer experiences, or explore untapped opportunities, our team has the expertise to help you thrive in the fintech era.

 

Find out we solve business problems

 

Your Next Step

Contact us today to learn how we can help you navigate Nigeria’s evolving financial landscape. Together, we can create solutions that empower your business and drive lasting impact. Email us at [email protected]

As Nigeria continues to establish itself as a hub for business and investment opportunities in Africa, understanding the immigration landscape is crucial for anyone looking to work or set up a business in the country. This article offers insights into the process, requirements, and visa options for business travelers and entrepreneurs seeking to make Nigeria their next destination.

 

Watch the Full Episode on Youtube

 

Overview of Nigeria’s Immigration Regulations

The Nigeria Immigration Service (NIS) is the regulatory body responsible for overseeing immigration matters in the country. As a government agency under the Federal Ministry of Interior, it operates in accordance with the Immigration Act of 2015, ensuring the smooth facilitation of immigration services to both visitors and residents.

Types of Visas for Business and Work in Nigeria

The Nigeria Immigration Service offers various visa categories tailored to different purposes. Below are some of the main types relevant to business travelers and professionals:

1. Tourist Visa
   This visa is issued for short visits, including tourism and social activities. It is valid for up to 90 days.
2. Business/Investor Visa
   Designed for individuals attending conferences, meetings, or exploring business opportunities in Nigeria. The visa is typically valid for 90 days but can extend up to five years depending on the specific need.
3. Temporary Work Permit (TWP)
   This single-entry visa is intended for experts coming into Nigeria for short-term work assignments, valid for 60-90 days. However, it is extendable up to a cumulative period of 12 months.
4. Subject to Regularization (STR) Visa
   Commonly referred to as an STR visa, this visa is issued to foreigners who are taking up long-term employment in Nigeria based on an expatriate quota granted to the hiring company. The visa allows multiple entries and also enables holders to bring in dependents.

Visa on Arrival and Exemptions for African Citizens

Recently, the Nigeria Immigration Service introduced a visa-on-arrival process, allowing business travelers and citizens from African countries (except ECOWAS members, who do not require a visa) to apply for entry into Nigeria upon arrival.

Key Documentation for Nigerian Visa Applications

The documentation required for a visa application will depend on the type of visa. Below are the general requirements for two of the most relevant visas:

1. Temporary Work Permit (TWP)
   • Application letter
   • Valid international passport (minimum six months validity)
   • Resume and passport photos of the invited expert
   • Hiring company’s credentials such as certificate of incorporation, business permit, and company profile
2. Subject to Regularization (STR) Visa
   • All documents required for a TWP visa
   • Invitation letter and valid expatriate quota position
   • Letter of employment and acceptance letter
   • Educational and professional credentials of the employee
   • Data page of the contact person (typically the signatory of the invitation letter)

Processing Timeline and Recommendations

Visa processing in Nigeria typically takes between two days to a week from the date of receipt of the application at the embassy. Given the complexity of immigration processes, it is often advisable to consult with reputable firms knowledgeable in immigration procedures and the local business landscape.

 

Watch our Doing Business in Nigeria Series

 

Conclusion

Understanding the visa categories and immigration processes is essential for anyone looking to establish a business or work in Nigeria. The Nigeria Immigration Service, through its structured processes, ensures that the needs of different types of business travelers are catered to. At Stransact, we provide expert guidance on navigating these requirements and can help you secure the appropriate visa for your business needs.

---

Need assistance with your Nigerian visa?

Contact us at [email protected] to learn how we can assist in making your business immigration process smoother.

Starting a business in Nigeria requires a clear understanding of the regulatory landscape. In this guide, we’ll walk you through the steps involved in registering your business and obtaining the necessary permits to legally operate in the country. Whether you plan to work in oil and gas, manufacturing, agriculture, financial services, or the maritime sector, compliance with Nigeria’s legal framework is crucial for success.

Watch Video on Youtube

Step 1: Register Your Business with the Corporate Affairs Commission (CAC)

The first step in establishing any business in Nigeria is registering it with the Corporate Affairs Commission (CAC). This applies to all businesses, regardless of their size or sector. CAC registration is a statutory requirement that gives your company legal recognition. This process is mandatory for both local and foreign companies operating within the country.

Key Documents and Information Required for CAC Registration:

• Proposed business name
• Nature and objectives of the business
• Details of directors and shareholders
• Statement of share capital

By engaging a reputable consulting firm like Stransact, the business registration process can be simplified. Once the application is submitted and approved, the CAC issues a Certificate of Incorporation for limited liability companies or Business Name Registration for sole proprietorships. This certificate is crucial, as it signals your company’s legal status to operate in Nigeria.

Step 2: Obtain Industry-Specific Permits

After incorporating your business, you may need additional permits depending on the sector you wish to operate in. If your business involves foreign shareholders, you must also obtain a Business Permit, which allows a company with foreign interests to operate without any regulatory disruptions.

Here’s a look at sector-specific licenses:

1. Food, Beverage, and Drug Manufacturing: Businesses in this sector must obtain licenses from the National Agency for Food and Drug Administration and Control (NAFDAC) to ensure compliance with public health standards.
2. Insurance Services: If your company is engaged in the insurance sector, you will need approval from the National Insurance Commission (NAICOM) before you can operate legally.
3. Telecommunications: Telecom companies are required to obtain licenses from the Nigerian Communications Commission (NCC) to operate in this highly regulated sector.
4. Oil and Gas: Companies operating in the oil and gas industry must obtain additional permits from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), formerly known as the Department of Petroleum Resources (DPR).

Each sector comes with its own set of specific requirements, and it’s important to ensure your company complies with all relevant regulatory agencies.

Watch the Doing Business in Nigeria Series

Navigating the Regulatory Landscape

Operating a business in Nigeria can be complex due to the variety of regulatory bodies overseeing different industries. It is essential to conduct thorough research into the licenses and permits required for your business. Partnering with a firm like Stransact can help simplify the process, ensuring that your company is fully compliant and able to focus on its core operations.

By following these steps, you’ll be well on your way to establishing a successful business in Nigeria. Stay tuned for the next episode in our series, where we’ll cover more insights to help you navigate the Nigerian business environment effectively.

In today’s increasingly digitized world, data privacy has emerged as a crucial element in the broader context of Environmental, Social, and Governance (ESG) strategies. Historically, data privacy was viewed primarily as a compliance issue, but as businesses globally accelerate their digital transformation, it has become a critical driver of trust, accountability, and sustainability.

Now more than ever, Nigerian businesses, particularly those in financial services, telecommunications, and e-commerce, must navigate the complex relationship between digital growth and responsible data management.

Data Privacy: A Rising Concern for Nigerian Businesses

Nigeria’s digital economy is rapidly expanding. According to the National Bureau of Statistics (NBS), the Information and Communication Technology (ICT) sector contributed about 17.47% to Nigeria’s GDP in Q1 2023. As more companies leverage digital platforms to enhance operations and customer experiences, the volume of personal data collected, stored, and shared has soared. However, this rapid digitalization comes with heightened risks of data breaches, cyber-attacks, and misuse of sensitive information. In 2022 alone, the Nigerian Communications Commission (NCC) reported over 3,834,244 cyberattacks targeting Nigerian enterprises, emphasizing the need for robust data protection frameworks. 

Data breaches not only result in financial losses but also erode trust—trust that is paramount for businesses in sectors like banking, telecom, and fintech, which rely heavily on customer confidence. For executives in these industries, protecting personal data is no longer just a regulatory requirement; it is a fundamental pillar of a company’s ESG commitment and a strategic imperative to foster customer loyalty and brand credibility.

Why Data Privacy Should Be a Core Part of ESG

In Nigeria, stakeholders—from investors to customers—are increasingly demanding transparency and accountability in how companies manage data. ESG, which measures a company’s impact on the environment, its relationships with stakeholders, and its governance practices, has evolved to include data privacy as an essential factor in assessing corporate responsibility. According to the Global Reporting Initiative (GRI), privacy-related disclosures are now a key aspect of sustainability reports.

By integrating data privacy into their ESG frameworks, Nigerian businesses can:

• Strengthen stakeholder trust: A commitment to responsible data handling reinforces public trust, which is crucial in sectors such as finance and telecom, where customer data is vital to operations.

• Reduce financial risks: Non-compliance with data protection laws, such as Nigeria’s Data Protection Regulation (NDPR), can lead to hefty fines. In 2021, fines imposed globally for data breaches under GDPR totaled over €1 billion, a clear warning for Nigerian companies to tighten their data protection frameworks.

• Enhance long-term sustainability: Ensuring data privacy safeguards not only regulatory compliance but also contributes to a company’s long-term resilience and market competitiveness.

Integrating Data Privacy into ESG Strategies: Practical Steps

1. Reducing Environmental Impact Through Data Efficiency
   Nigerian businesses, particularly those in data-intensive sectors, must adopt energy-efficient IT infrastructure and data storage practices. Data centers, notorious for their high energy consumption, can significantly reduce their carbon footprint by leveraging green technologies such as cloud computing and energy-efficient servers. For example, using cloud-based solutions has been shown to reduce energy consumption by up to 84% compared to traditional data centers. 

2. Promoting Social Responsibility Through Ethical Data Use 
   With the proliferation of digital services, businesses must ensure ethical handling of personal data. Nigerian consumers are becoming increasingly conscious of how their data is used. Research shows that 80% of Nigerian consumers would cease engaging with a brand after a data breach. Companies must establish transparent data management practices, allowing users to control their data, request deletions, and access privacy settings easily. This proactive approach aligns with the social responsibility component of ESG, fostering stronger community ties and consumer confidence.

3. Governance: Strengthening Data Protection Frameworks 
   Strong governance is key to ensuring compliance with data privacy regulations. Nigerian firms need to go beyond simply adhering to the NDPA. Establishing robust internal data governance policies, appointing dedicated Data Protection Officers (DPOs), and conducting regular compliance audits should be a priority. Ensuring board-level oversight on data privacy can mitigate risks and prevent regulatory penalties. A well-governed approach positions firms to be more resilient against cyber threats and data mishandling.

Strategies for Building Trust through Data Privacy

1. Empowering Users and Employees 
   Businesses should enable users to take control of their data. Offering user-friendly privacy controls and promoting data literacy, both internally and externally, will cultivate a culture of trust. Internally, continuous employee training on data privacy best practices is vital for minimizing human error, which accounts for a significant proportion of data breaches.

2. Strengthening Data Security 
   Protecting personal data from breaches and unauthorized access is central to maintaining trust. Nigerian businesses, particularly those in sectors like banking and telecom, must adopt advanced data security protocols, such as encryption, multi-factor authentication, and real-time cyber threat monitoring systems. Nigeria experienced 20% of Africa’s total cyber-attacks in 2022, underscoring the need for proactive security measures. 

3. Driving Transparency Through Regular Reporting 
   Nigerian executives must lead by example by promoting transparent data management policies. Regular ESG reports should include detailed privacy practices, third-party audits, and updates on compliance with regulations such as NDPR and GDPR for global businesses. Transparency is a powerful tool for earning the trust of investors, customers, and regulators alike.

The Role of Technology in Data Privacy

Emerging technologies can be a double-edged sword in data privacy. While tools like Artificial Intelligence (AI) can help predict and mitigate risks, they can also introduce new privacy concerns if not managed ethically. Nigerian firms should adopt AI responsibly, ensuring compliance with privacy regulations. Blockchain technology also offers promising solutions, particularly in securing and verifying data transactions, but businesses must ensure that its use aligns with NDPR standards.

Our Role as a Data Protection Compliance Organisation (DPCO)

At Stransact, we understand the complexity of data privacy challenges and the need for businesses to maintain the highest standards of compliance while fostering growth. As a Data Protection Compliance Organisation (DPCO) accredited by the National Data Protection Agency (NDPA), we offer a comprehensive suite of services, including:

• Data Privacy Audits and Assessments: Ensuring compliance with NDPR and global standards.

• Technology Advisory & Consulting: Helping businesses implement secure, energy-efficient data management systems that align with ESG goals, including cloud infrastructure, AI integration, cloud computing, and more. Click here to find our technology services brochure 

• Data Protection Officer (DPO) Services: Providing expert guidance to develop and manage effective data privacy frameworks.

• ESG Reporting: Assisting clients in incorporating data privacy into their ESG disclosures to build stakeholder trust and demonstrate commitment to responsible governance.

In a digital-first world, data privacy is not only a regulatory obligation but also a strategic opportunity to build trust and gain a competitive edge. By integrating privacy into your ESG strategy, your business will not only comply with regulations but also inspire confidence among stakeholders, ensuring long-term success in the Nigerian market and beyond.