Meta Platforms Inc. has cautioned that it might discontinue operations of Facebook and Instagram in Nigeria due to escalating regulatory penalties and what it deems as “unrealistic” data protection and advertising regulations.
The tech giant, which also owns WhatsApp, issued the threat on Thursday after losing a legal challenge at the Abuja High Court.
The lawsuit aimed to annul over $290 million in penalties imposed by Nigerian regulatory bodies.
In 2024, three governmental organizations—the Federal Competition and Consumer Protection Commission (FCCPC), the Advertising Regulatory Council of Nigeria (ARCON), and the Nigeria Data Protection Commission (NDPC)—levied individual fines on Meta due to breaches of local regulations.
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The FCCPC levied the biggest penalty yet at $220 million, alleging that the firm engaged in anti-competitive actions which reportedly interfered with regional digital marketplaces and undermined equitable trade practices.
ARCON subsequently imposed a $37.5 million penalty on Meta for broadcasting commercials lacking necessary permissions, citing non-compliance with local advertising regulations as the reason.
Moreover, the NDPC imposed a $32.8 million penalty, pointing out “ongoing infractions” concerning Nigeria’s data protection regulations, notably the illegal export of individuals’ private information overseas.
“The investigations conducted from May 2021 to December 2023 uncovered invasive practices against data subjects in Nigeria,” said Adamu Abdullahi, Chief Executive of the FCCPC.He added, “These findings were the result of joint efforts between our agency and the NDPC, and we remain committed to protecting Nigerian consumers.”
In court, Meta contended that the nation’s data protection regulations were incorrectly enforced by regulatory bodies, specifically concerning cross-border data exchanges and user consent guidelines.
“We are dedicated to adhering to local regulations; however, the NDPC’s stipulations mandating pre-approval for data transfers do not align with international standards for data circulation,” the corporation’s legal counsel asserted in official court documents.
The NDPC further instructed Meta to work alongside recognized institutions in generating and sharing educational material aimed at Nigerian users regarding the risks associated with improper use of data.
As stated by the commission, the material should explicitly elucidate “deceptive and unjust practices of data handling” along with their impact on individuals’ physical well-being and economic stability.
Meta condemned the directive as overly harsh and unfeasible, asserting that such restrictions were not enforced on other global technology firms active in Nigeria.
Even though the court decided against Meta, their official statement made no reference to WhatsApp, leaving doubts about whether this could impact the messaging app potentially facing restrictions.
Facebook continues to be the most popular social media platform in Nigeria, catering to tens of millions of users who use it for communication, sharing content, and promoting small businesses.
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