Unlocking power, future and imperative of data privacy

Data analytics is transforming industries worldwide, revolutionising how organisations operate, make decisions, and drive innovation. In today’s digital age, data has become an essential strategic asset, propelling progress across every sector.

As the volume of global data grows exponentially, the field of data analytics is expected to soar, with projections indicating a rise from $7.03 billion in 2023 to a staggering $303.4 billion by 2030, marking a compound annual growth rate (CAGR) of 27.6 per cent. This explosive growth emphasises the critical role of data science in guiding organisations toward data-driven decisions, moving away from intuition to insights grounded in analysis.

Nigeria, Africa’s largest economy, is now part of this global data revolution, leveraging data analysis to drive economic development and improve public services. With 45.5 per cent internet penetration and nearly universal mobile phone usage (97.6 per cent of the population), Nigeria’s digital footprint is rapidly expanding. Projections for the Nigerian machine learning market indicate remarkable growth, expecting a market size of $0.40 billion by 2024 and a CAGR of 35.9 per cent through 2030.

From finance to healthcare, agriculture to education, sectors across Nigeria are incorporating digital transformation to harness data for more informed decision-making, better governance, and enhanced service delivery.

Data analytics in Nigeria: Early Stages and enormous potential
Despite its promise, data analytics is still in its early stages in Nigeria. So far, much of the focus has been on descriptive analytics—analysing past data to understand trends and patterns—while predictive and prescriptive analytics, which anticipate future trends and recommend actions, are yet to be fully utilised. Unlocking these advanced stages could significantly elevate Nigeria’s economy by enhancing real-time, accurate decision-making and fostering the ability to predict economic trends.

In response, the Nigerian government has launched initiatives to foster digital innovation and enhance data analytics skills. The Federal Ministry of Communications, Innovation and Digital Economy is leading the way with multi-faceted digital transformation projects. Two key initiatives—the 3 Million Technical Talent (3MTT) Programme and the Broadband Alliance—are designed to lay a solid foundation for Nigeria’s digital growth.

The 3MTT programme aims to cultivate a highly skilled tech workforce that can drive digital transformation both locally and globally. Meanwhile, the Broadband Alliance, a collaborative effort to achieve universal broadband access, seeks to expand internet access across Nigeria, a critical step in data-driven development.

The data privacy imperative
However, data-driven growth cannot be realised without addressing data integrity, quality, privacy, and security. Ensuring data quality—data that is free from manipulation and bias—is crucial for the country to fully benefit from analytics. Strengthening data privacy protections is equally important, especially given the rise in data breaches and concerns over personal information security in digital economies.

Nigeria is making concerted efforts to reinforce its data protection framework. Still, these efforts must align with international best practices and evolve continuously to keep pace with the rapidly changing digital landscape.

This will ensure the safeguarding of personal data, prevent breaches, and maintain public trust. Additionally, Nigeria must bolster enforcement mechanisms and impose penalties for non-compliance to underscore the seriousness of data privacy.

Balancing growth with privacy: A path forward
Unlocking the power of data analytics in Nigeria requires a balanced approach that promotes economic growth while prioritising data integrity, quality, and privacy. By fostering data-driven decision-making, encouraging innovation, and strengthening data protection, Nigeria can unlock the full potential of its digital economy, empowering businesses, enhancing governance, and improving citizens’ lives.

The future of data analytics in Nigeria is bright, but achieving its promise requires strategic investments, robust infrastructure, and unwavering attention to data ethics. Only with these priorities can Nigeria fully leverage data analytics as a transformative force for economic and social progress.

Olawale, a Chartered Accountant with over ten years of experience, focuses on data analysis and financial innovation in the banking and finance sector.