By Precious Wogu
In today’s digital world, proving one’s identity has become a complex and often risky affair. Whether opening a bank account, applying for a job, or simply accessing online services, individuals rely on centralised identity providers—governments, corporations, and financial institutions. However, these systems expose people to identity theft, fraud, and data exploitation.
Case in point is the rising cases of cybercrime in Nigeria. A lot of victims only know their identities have been stolen when they attempt to conduct transactions or get bank loans, only to discover that someone else has been using their details fraudulently. These issues arise from a broken identity system where sensitive personal information is stored in centralised databases, making them susceptible to hacks. The Equifax breach of 2017 exposed 147 million people’s personal data while the Cambridge Analytica scandal manipulated democratic elections with individual data. In Nigeria, multiple breaches have been reported by both individuals and institutions, putting millions at risk of financial loss and privacy violations.
There is also the issue of surveillance capitalism where every time you browse the internet, use social media, or sign up for an online service, you leave behind a digital footprint. Corporations, advertisers, and even governments collect and track this data, often without your explicit consent. Little wonder why the phenomenon of seeing ads for products you speak of in conversation is prevalent. Personal data is harvested, sold, and used to predict and influence people’s behaviour.
Beyond security risks, traditional identity systems also exclude millions of people. In Nigeria, a significant portion of the population lacks access to formal identification, making it difficult to open bank accounts, secure loans, or vote. Designed inefficiencies and infrastructural gaps further contribute to this exclusion, leaving many Nigerians without a recognised identity in an digital world.
These failures have led the discerning to advocate for self-sovereign identity (SSI). SSI are systems where individuals have full control over their own identity without relying on centralised authorities. With SSI, rather than submitting your passport or other identifier to public and private institutions, all you need do is carry a secure digital identity that allows you to verify your details only when necessary and without compromising personal information.
SSI utilises technologies like blockchain, zero-knowledge proofs, and decentralized identifiers in its operations. A simple description of SSI is that it allows you to prove facts about yourself, be it age or nationality, without revealing sensitive data. But unlike traditional identity models where banks, government agencies, or social media platforms control your information, SSI ensures that you alone decide who has access to your data. This method of identification helps reduce fraud significantly since personal data is not stored in a central database accessible by hackers.
The benefits of SSI go beyond just security as it can transform financial access by simplifying Know Your Customer (KYC) processes, allowing more people to enter the formal financial system without going through complex verification procedures. This way, the efforts of the Federal Government do deepen financial penetration will take a boost as the digital credentials will help rural dwellers to access financial services more easily. The system will also be integral to reducing electoral fraud which has plagued the nation since time immemorial and also improve healthcare services as access to medical records will be easily retrievable.
Regardless of these unambiguous advantages, SSI adoption faces several challenges, mostly in the form of governments and corporations. Public and private institutions that benefit from controlling identity systems will undoubtedly be reluctant to embrace decentralization. Interoperability between different systems is another concern as more societies need to recognise and accept the SSI framework for it to be effective across borders. Additionally, there is need for massive public enlightenment as many people are unaware of the concept of digital identity sovereignty and how it benefits them. The chances of these happening soon are slim, however, with greater education of the masses, the voices requesting a switch to the system will only get amplified.
As a people, there is no better time than now to recognise the value of the SSI framework in replacing the outdated and vulnerable, and exclusionary identity systems. It us pivotal that we push for policies that support SSI frameworks while encouraging businesses to integrate SSI models and educating the masses on their right to control their digital identity. In a world where identity is the gateway to most good things including financial inclusion, Nigerians cannot afford to sit back and let centralised authorities dictate the terms. It is time to take back control.
Precious Wogu is a tech leader and founder of Blockvila Limited
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