WhatsApp is considering suspending its operations in Nigeria following a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) for a data privacy breach. The regulatory body has also directed WhatsApp to cease sharing user data with Facebook and third parties without explicit consent and to provide greater transparency about its data collection practices.
Meta, the parent company of WhatsApp, is reportedly weighing the option of withdrawing certain services from Nigeria due to the regulatory demands. 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 as flawed, claiming it misrepresents WhatsApp’s data handling practices and would require substantial changes to the platform’s infrastructure.
While Meta has not specifically addressed the FCCPC’s claims regarding the 2021 privacy policy update, the company maintains that the update does not involve sharing user data. WhatsApp’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.”
The potential exit of WhatsApp from Nigeria could have significant consequences for millions of users and small businesses that rely on the platform for communication and customer engagement.
The FCCPC’s use of the National Data Protection Regulation (NDPR) as the basis for the fine has been questioned by some privacy lawyers. Enacted in 2019 by the National Information Technology Development Agency (NITDA), the NDPR is Nigeria’s primary data protection framework. However, two unnamed lawyers expressed doubts about its authority in a case of this magnitude, questioning whether a government regulation could be definitive in privacy issues.
Additionally, some government officials and industry experts have raised concerns about the fairness and implications of the $220 million fine. One expert noted, “We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?”
If WhatsApp decides to halt its services in Nigeria due to these demands, the move could lead to significant backlash against both the FCCPC and the Nigerian government, given the platform’s widespread use and importance in the country.
