Data protection and transborder data flows : implications for Nigeria's integration into the global network economy

Abstract

One of the realities that developing countries like Nigeria have to face today is that national and international markets have become more and more interconnected through the global platform of telecommunications and the Internet. This global networked economy is creating a paradigm shift in the focus of development goals and strategies particularly for developing countries. Globalisation is driving the nations of the world more into political and economic integration. These integrations are enhanced by a globally interconnected network of economic and communication systems at the apex of which is the Internet. This network of networks thrives on and encourages the expansion of cross-border flows of ideas and information, goods and services, technology and capital. Being an active member of the global network economy is essential to Nigeria’s economic development. It must plug into the network or risk being shut out. The global market network operates by means of rules and standards that are largely set by the dominant players in the network. Data protection is a critical component of the regime of rules and standards that govern the global network economy; it is evolving into an international legal order that transcends geographical boundaries. The EU Directive on data protection is the de facto global standard for data protection; it threatens to exclude non-EU countries without an adequate level of privacy protection from the EU market. More than 50 countries have enacted data protection laws modelled on the EU standard. Access to the huge EU market is a major motivation for the current trend in global harmonisation of domestic data protection laws. This trend provides a compelling reason for examining the issues relating to data protection and trans-border data flows and their implications for Nigeria’s desire to integrate into the global network economy. There are two primary motivations for legislating restrictions on the flow of data across national boundaries. The first is the concern for the privacy of the citizens, and second, securing the economic well-being of a nation. It is important that Nigeria’s privacy protection keeps pace with international norms in the provision of adequate protection for information privacy order to prevent potential impediments to international trading opportunities.