Meta penalty slashed as Nigeria opts for reform over revenue

The Nigeria Data Protection Commission (NDPC) has clarified that the $32.8 million fine imposed on Meta Platforms Inc. was not completely cancelled. Instead, the penalty was reduced as part of a negotiated settlement that includes compliance measures and public awareness efforts.

The commission issued the statement following reports suggesting that the entire fine had been quietly waived. According to the NDPC, both parties reached a negotiated settlement that reduced the financial penalty. As part of the agreement, Meta is expected to make certain payments to the government, although the exact amount has not been disclosed.

The remaining portion of the penalty has been converted into commitments aimed at improving data protection practices in Nigeria. This process began in February 2025 after a 17-month investigation. NDPC officials accused Meta of handling the personal data of over 60 million Nigerians without proper consent, allegedly using the information for targeted advertising and transferring it abroad without following local regulations.

The commission originally issued eight corrective orders to compel Meta to change its practices. Meta challenged the fine in court, leading to months of negotiations. Both parties signed a confidential settlement agreement on 30 October 2025. On 3 November 2025, a Federal High Court in Abuja converted the agreement into a formal consent judgment.

NDPC spokesperson Itunu Dosekun said the fine was not waived entirely. Dosekun noted that while part of the money was paid to the government, the rest was addressed through joint initiatives between the NDPC and Meta. Between January and February 2026, several awareness campaigns about data privacy appeared on Facebook in collaboration with the commission.

These campaigns aimed to educate Nigerians on protecting personal information online. Dosekun added that three additional initiatives are currently under discussion. The NDPC also partnered with Meta to translate the Nigeria Data Protection Act into local languages to improve public understanding. “It is not just about collecting fines,” Dosekun said. “We want to promote businesses while making sure organisations respect people’s privacy.”

Under the original fine, Meta faced stringent requirements to halt certain data practices. In the settlement, many of these orders were softened or replaced with broader promises regarding future data handling. Meta also agreed to pay the government’s legal costs. However, the decision to keep the full settlement private for several months has sparked debate about the regulation of global technology firms.

Data protection experts and lawyers have criticised the deal, suggesting it shows weak enforcement. Critics have questioned whether the NDPC has the legal power to reduce such large penalties and argue that the settlement heavily favours Meta. Some believe the agreement undermines the spirit of the Nigeria Data Protection Act.

The Data Privacy Lawyers Association of Nigeria (DPLAN) has already issued a pre-action notice to the NDPC and threatened court action. The group claims the commission lacked the authority to compromise the remedial fine. They are demanding a clear explanation and the restoration of the original $32.8 million penalty. A court hearing on related matters is expected in early 2026.

While settlements between regulators and large companies are common globally, critics argue that deals lacking transparency weaken future enforcement. This case highlights a persistent challenge for many African countries: holding big tech companies accountable while building credible institutions. As debates continue, many are calling for clearer rules on when and how regulators can negotiate such compromises.