WhatsApp Faces Potential Exit from Nigeria Over $220 Million Fine, Data Privacy Dispute

In a recent development, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on WhatsApp for a data privacy breach.

This action has led to speculation that the popular messaging app may suspend its operations in Nigeria due to additional regulatory demands.

Insiders suggest that Meta, WhatsApp’s parent company, is considering withdrawing some of its services from the Nigerian market. The FCCPC’s directives include stopping the sharing of user data with other Facebook entities and third parties without explicit consent, and enhancing transparency in data collection practices.

A WhatsApp spokesperson told TechCabal, “We want to be clear that, technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.” The spokesperson criticized the FCCPC’s order, claiming it misrepresents WhatsApp’s data handling and would require significant changes to the platform’s infrastructure.

Meta has not directly addressed the FCCPC’s concerns regarding user opt-out options from the 2021 privacy policy. However, the company maintains that the update does not involve sharing user data, stating, “While traditionally mobile carriers and operators store this information, we believe that keeping these records for two billion users would be both a privacy and security risk, and we don’t do it.”

The potential suspension of WhatsApp could have major implications for individuals and small businesses in Nigeria, who heavily rely on WhatsApp, Instagram, and Facebook for customer engagement.

Some privacy lawyers have questioned the FCCPC’s reliance on the National Data Protection Regulation (NDPR) as the basis for the fine. Enacted in 2019 by the National Information Technology Development Agency, the NDPR serves as Nigeria’s main data protection framework. However, two anonymous lawyers have expressed doubts about the NDPR’s authority in this high-stakes case, questioning whether a government regulation can be definitive in such privacy matters.

Additionally, two unnamed government officials have raised concerns about the fairness of the $220 million fine, suggesting that it may be more revenue-focused rather than addressing the underlying privacy issues.