Every time we tap our phones, send money via fintech apps, or scroll through social media, we generate a goldmine of digital information.
But instead of profiting, most times, we give away these data free while tech companies—both local and global—turn them into billions of dollars.
If data is the new oil, why are Nigerians being paid in likes and targeted ads instead of actual money?
While tech giants and even Nigerian startups rake in profits from user data, the people generating this wealth see little to no return. Are we being exploited, or is this just the price of “free” digital services? More importantly, what can we do about it?
Who Profits?
Every digital interaction—every like, every search, every online payment—is raw material for an industry worth over $3 trillion globally. Companies like Meta, Google, and Amazon don’t just sell products, they sell insights into human behaviour.
Here’s an example: In 2023, Google made over $280 billion, with more than 80% of that coming from ads. But what powers those ads? User data. Every time you search for flights, hotels, or even a pair of shoes, that information gets packaged, analysed, and sold to advertisers who bid for your attention.
The same happens in Nigeria, but with less transparency. Fintech firms collect transaction data to refine credit scoring models. Telecoms track usage patterns to sell better-targeted plans. Even ride-hailing apps like Bolt use location data to optimise pricing. The difference? Unlike in Europe, where strict laws force companies to disclose data usage and, in some cases, compensate users, Nigerians get nothing.
Nigeria is among the fastest-growing digital populations in the world, with millions hopping online to connect, transact, and innovate. Social media platforms, fintech apps, e-commerce sites-they all rely on the steady stream of data we generate. But for all the value we create, what do we get in return? Likes, notifications, and maybe a chance to trend online for 48 hours.
The truth is that we’re “selling” our data every time we agree to an app’s terms and conditions, often without understanding what it entails.
Our digital breadcrumbs-location data, spending habits, browsing history-are collected, analyzed, and sold, sometimes by companies we’ve never even heard of. It’s like running a gold mine but receiving payment in monopoly money.
And the kicker? With limited awareness and weak regulatory frameworks, we’re doing this willingly. It’s a digital free-for-all, and Nigerian consumers are caught in the middle.
So, now answering the question, who profits? Let’s not kid ourselves. The bulk of the wealth generated from Nigerian data doesn’t stay in Nigeria. It flows into the coffers of multinational corporations. Big Tech firms sit on the proverbial oil wells, refining raw user data into targeted ads, predictive analytics, and market insights.
Meanwhile, local startups and businesses most times lack the infrastructure or scale to compete, leaving them out of the data gold rush.
And what about the individual? Us? We’re the worker ants building empires for others, one click at a time. We don’t own our data, we don’t control who uses it, and we certainly don’t see any dividends.
Nigeria has over 103 million internet users and over 205 million mobile connections. That’s a massive data footprint. Every second, millions of Nigerians transact through fintech apps, chat on WhatsApp, post on X (formerly Twitter), and browse the web. But where does all this data go?
- Fintech & Banking: Every mobile money transfer, loan request, or bill payment provides insights into financial habits. Payment giants like Opay, PalmPay, and Flutterwave use this to refine services, but customers have no control over how their data is used.
- Telecom & Internet Providers: MTN, Airtel, and Glo track call logs, location history, and browsing behaviour. This data is sometimes shared with third parties or used for targeted advertising.
- Social Media & E-commerce: Nigerians engage heavily on X, Instagram, TikTok, and local e-commerce platforms like Jumia and Konga. Their preferences, interests, and even political leanings become marketable insights.
- Government & Public Data: National ID systems like BVN and NIN centralise citizen data, but weak policies leave gaps for misuse, leaks, or unauthorised access.
If our data is this valuable, why are we not benefiting from it?
Are Nigerians Being Exploited? The Missing Piece in Data Ownership
Let’s compare: In the EU, GDPR (General Data Protection Regulation) ensures that companies must obtain user consent before collecting data. In the US, data brokers make billions selling user profiles. But in Nigeria, weak enforcement of NDPR (Nigeria Data Protection Regulation) means most people have no idea where their data goes.
The consequences?
- Privacy Violations: Data breaches are common. In 2023, a major Nigerian telecom provider reportedly got hacked, exposing millions of customer records online.
- Financial Exploitation: Some loan apps access users’ contacts and call history, then use aggressive debt collection tactics.
- Lack of Control: Nigerians cannot opt out of data tracking on many platforms, meaning companies make money off their information without consent.
Imagine if every Nigerian could own and monetise their own data—companies would have to pay to access it, just like they do for oil, real estate, or any other valuable resource.
The solution starts with awareness and action. Here’s what needs to change:
1. Education
Let’s stop clicking “Agree” like it’s a reflex.
If you don’t know the value of something, you can’t fight for it. From secondary schools down to community workshops, Nigerians should be taught the basics of data privacy and its economic implications. Data literacy is super necessary.
2. Stronger Data Protection Laws
The government must go beyond NDPR and enforce GDPR-level regulations. Users should have the right to know how their data is used, opt out of tracking, and even get compensated when their data is monetised.
2. Monetisation Models for Users
There are already platforms globally where users can sell access to their data directly to advertisers instead of giving it away. Nigerian startups should explore this model. Imagine getting paid for sharing your shopping habits instead of just seeing endless targeted ads.
3. Smarter Digital Habits
Individuals can take small steps to protect their data:
- Use privacy-focused browsers (e.g., Brave, DuckDuckGo).
- Turn off ad tracking in app settings.
- Be selective with permissions—most apps don’t need access to your location or contacts.
4. Blockchain & Decentralised Data Ownership
Some startups worldwide are exploring blockchain-based personal data markets where users control access. This could be a game-changer for Nigeria’s digital economy.
Nigerians are producing valuable data every second, but only big tech firms and businesses are profiting. This must change.
- Policymakers need to prioritise data ownership rights.
- Entrepreneurs should build user-first platforms that reward people for their data.
- Individuals must demand more transparency from companies collecting their information.
If data is the new oil, then Nigerians must stop giving it away for free. It’s time to take control.
