WhatsApp is considering pulling its services from Nigeria after being hit with a $220 million fine by the Federal Competition and Consumer Protection Commission (FCCPC) over data privacy issues.
According to insiders at Meta, WhatsApp’s parent company, the company is weighing the possibility of scaling back its operations in Nigeria due to increasing regulatory pressures. The FCCPC’s order requires WhatsApp to stop sharing user data with other Facebook entities and third parties without explicit consent, and to enhance transparency about its data collection practices.
In response, a WhatsApp spokesperson told TechCabal, “Given the order, it would be technically challenging to continue providing WhatsApp in Nigeria or globally.” The spokesperson argued that the FCCPC’s demands are misleading and would require substantial changes to the platform’s infrastructure.
Meta has yet to directly address concerns related to user opt-out options from its 2021 privacy policy update but maintains that the update does not involve sharing user data. According to Meta’s privacy policy, they do not store user data for their two billion users due to privacy and security risks.
A potential withdrawal of WhatsApp could have significant effects on individuals and small businesses in Nigeria that rely on WhatsApp, Instagram, and Facebook for communication and customer engagement.
Some privacy experts have questioned the FCCPC’s use of the National Data Protection Regulation (NDPR) as the basis for the fine. The NDPR, established by the National Information Technology Development Agency in 2019, is Nigeria’s primary data protection law.
Two anonymous lawyers have expressed doubts about whether the NDPR has the legal authority to support such a substantial fine. Additionally, some government officials have raised concerns about the fairness of the $220 million fine, questioning the impact on government revenue and the broader economic implications.
