Reports indicate that WhatsApp is contemplating shutting down its services in Nigeria after the Federal Competition and Consumer Protection Commission (FCCPC) levied a $220 million fine against the platform for alleged data privacy violations.
Sources within Meta, the parent company of WhatsApp, suggest that they are considering withdrawing certain services from Nigeria due to growing regulatory challenges.
Alongside the substantial fine, the FCCPC has directed WhatsApp to cease sharing user data with Facebook’s other companies and third-party entities without clear user consent. The commission also requires WhatsApp to clarify its data collection practices and enhance users’ control over their personal information.
A WhatsApp spokesperson told TechCabal via email, “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 directive, arguing that it misrepresents WhatsApp’s data handling and necessitates extensive changes to the platform’s infrastructure.
While Meta has not directly addressed the FCCPC’s concerns about user opt-out options from the 2021 privacy policy changes, the company asserts that the update does not involve sharing user data.
Meta’s privacy policy states, “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.”
If WhatsApp decides to exit Nigeria, it could significantly impact individuals and small businesses that rely on WhatsApp, Instagram, and Facebook for communication and customer engagement.
Some privacy lawyers have questioned the FCCPC’s use of the National Data Protection Regulation (NDPR) as the basis for the fine. Introduced by the National Information Technology Development Agency in 2019, the NDPR serves as Nigeria’s primary data protection framework.
Two unnamed attorneys have expressed doubts about the NDPR’s authority in such a prominent case, questioning whether a government regulation can be definitive in privacy disputes.
Additionally, two anonymous government officials have questioned the fairness of the $220 million fine. “We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” asked an industry expert.
