Meta vs Nigeria: $290m fine sparks exit threat in digital showdown

Joy Agwunobi

The conflict between Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) and Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp has deepened, following a recent tribunal ruling that upheld a series of regulatory penalties for alleged violations of the country’s consumer protection and data privacy laws.

The ruling has not only intensified the standoff but also cast doubt over the future of Meta’s operations in Africa’s largest internet market with the firm  now threatening to shut down Facebook and Instagram services in Nigeria

In July 2024, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on Meta for what it described as consistent and serious breaches of the Nigerian Data Protection Regulation (NDPR) and the Federal Competition and Consumer Protection Act (FCCPA) of 2018. Following a recent ruling by the Competition and Consumer Protection Tribunal upholding that fine, the FCCPC also ordered Meta to pay an additional $35,000 to cover the cost of its investigation.

Other Nigerian agencies have also taken action, the Advertising Regulatory Council of Nigeria (ARCON) fined Meta ₦60 billion (about $37.5 million) for running ads in the country without proper approval. The Nigeria Data Protection Commission (NDPC) added another fine of $32.8 million for similar data privacy issues. In total, Meta now faces $290.3 million in fines in Nigeria.

Reacting to the tribunal ruling and the increasing financial liabilities, Meta indicated in court filings that it may consider withdrawing some of its services from the Nigerian market. “The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures,” the company said.

Such a move could carry profound implications for Nigeria’s economy and social fabric. Social media platforms like Facebook and Instagram are indispensable to millions of Nigerians who rely on them for entrepreneurship, marketing, digital communication, and lifestyle engagement.

With over 164.3 million active internet subscriptions as of March 2025, according to the Nigerian Communications Commission (NCC), Nigeria represents one of Meta’s most largest user bases globally. The company’s platforms enjoy widespread adoption across all age demographics and socioeconomic classes, positioning Nigeria as a key growth market in the African region.

Highlighting the real-life consequences of such a restriction, Benedicta Etafo, a data management expert, warned that the economic and social fallout could be severe.

“Tens of thousands of Nigerians make use of this platform. The effect of this restriction ranges from economic impact to communication gap to data and analytics disruptions, as well as our social well-being,” she explained.

Etafo elaborated that countless small and medium-sized businesses now use Facebook Marketplace to reach customers beyond Nigeria’s borders.

“With this effect, it’s going to reduce their tendencies to make sales. Nowadays, we have a lot of people, be it small or medium-scale businesses, who make use of Facebook Marketplace as a medium to sell their products and advertise to a global audience,” she said.

She also emphasised the threat to jobs and livelihood in Nigeria’s fast-growing digital economy. Stating “We have  embraced content creation as a viable career. Social media strategists, analysts, and brand managers depend on these platforms. Restricting access will lead to a decline in job opportunities, and this will affect the economy.”

Beyond commercial concerns, digital communication also plays a critical role in societal well-being. Etafo  cautioned that restricting access to social media platforms could have far-reaching consequences, particularly in the area of real-time communication. She referenced instances where individuals had used platforms like Facebook to alert the public during emergencies, suggesting that removing such channels could create a serious gap in timely information-sharing.

She also stressed that for many people, social media serves as a form of relaxation and social engagement after a long day, taking away that access would not only impact the economy but also negatively affect the emotional and social health of users.

In addition to concerns about communication access, Etafo underscored the significance of data protection as a basic right.she noted “Data privacy is very important. It’s about how personal information is collected, used, and stored. From a user’s perspective, knowing your data is protected builds trust and encourages the sharing of authentic information,” she explained.

She pointed out that proper data safeguards help prevent identity theft, uphold human rights such as freedom of information, and allow users to understand how their data is used.

From a business standpoint, Etafo noted that compliance with data protection laws can prevent lawsuits and fines that might damage a company’s reputation.

“When businesses are hit with data-related lawsuits or fines, it puts a dent on their brand. It reduces the public’s trust in that brand,” she noted. “And on a broader scale, strict privacy rules if not well managed—can slow down innovation, particularly in emerging fields like artificial intelligence and machine learning that rely on large datasets.”

However, despite  Meta’s threat to exit the Nigerian market, the FCCPC has remained unshaken by Meta’s threat to exit the country. In a statement issued by  Ondaje Ijagwu, the commission’s director of public affairs, the regulatory body described Meta’s response as “a calculated move aimed at inducing negative public reaction and potentially pressuring the FCCPC to reconsider its decision.”

According to the FCCPC, Meta and WhatsApp (collectively referred to as “Meta Parties”) were found to have committed multiple infractions under Nigerian law. These include the unauthorised transfer and sharing of user data, discriminatory practices against Nigerian users compared to those in other jurisdictions, and the imposition of privacy policies that allegedly undermine user rights and violate principles of fair competition.

The Commission further accused Meta of leveraging its dominant market position in ways that stifle consumer autonomy and contravene both national and international data protection standards. “Meta Parties denied Nigerians the right to control their personal data and abused their market power by implementing unfair terms of service,” the FCCPC stated.

Highlighting a pattern of global regulatory scrutiny, the FCCPC referenced similar sanctions imposed on Meta in other jurisdictions, including a $1.5 billion penalty in Texas and a $1.3 billion fine in the European Union for data privacy violations. Countries such as India, South Korea, France, and Australia have also penalised Meta for comparable breaches.

However, the Commission noted that in none of these instances did Meta resort to what it called “blackmail” by threatening to withdraw services.

“Threatening to leave Nigeria does not absolve Meta of liabilities for the outcome of a judicial process. The FCCPC remains resolute in its mission to enforce compliance with consumer protection laws and uphold the integrity of Nigeria’s digital ecosystem,” the Commission emphasised.

The Commission added that the Tribunal’s affirmation of its sanctions now legally compels Meta to align its operations with Nigerian regulatory standards. This includes reforming its data handling practices, ceasing exploitative behaviour, and ensuring parity in user treatment—objectives the FCCPC says are consistent with international best practices.