Meta and the Nigerian Data Protection Commission (NDPC) have agreed to settle their $32.8 million data privacy dispute out of court. This unexpected move brings hope for a quicker resolution to a case that has attracted significant attention since the fine was announced earlier this year.
The dispute began when Meta, which owns Facebook and Instagram, was fined $32.8 million by the NDPC for allegedly breaking Nigeria’s data privacy laws. In February 2025, the commission found that Meta had processed the personal data of Nigerians without proper consent.
The company was also accused of using behavioural advertising that targeted users unfairly and breaking rules about transferring data across borders. In addition, Meta was criticized for not submitting a required audit report and for handling the data of people who are not even users of its platforms.
After this investigation, the NDPC issued eight corrective orders along with the large financial penalty.
However, Meta rejected the fine and orders, saying it had been denied a fair chance to defend itself. The company argued it was not properly informed before the fine was imposed, which it said violated its legal right to due process.
Meta then asked the court to cancel the orders. In response, the NDPC’s legal team described Meta’s case as flawed and inconsistent.
They said Meta was trying to introduce new arguments that the court rules do not allow once decisions have already been made. This dispute led to a tense legal back-and-forth, waiting on a court ruling.
Then, something unexpected happened: lawyers for both Meta and the NDPC announced that they were talking about settling the dispute outside court. Draft settlement terms had been shared, and both sides asked for more time to finish discussions.
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The judge agreed, recognizing that the law supports resolving such issues by agreement whenever possible. He postponed his decision to October 31, 2025, to give the parties a chance to finalize a settlement or, if that fails, proceed with a court ruling.
This development is important for Nigeria’s digital future. The case is one of the first and biggest tests of Nigeria’s Data Protection Act, which was introduced in 2023 to protect people’s personal information.
The law requires companies to get clear consent before using data, keep data safe, and regularly report on compliance. The NDPC’s decision to fine Meta, along with a separate fine on Multichoice Nigeria, shows that Nigeria is serious about enforcing the law against both foreign and local businesses.
By agreeing to settle, Meta and the NDPC send two clear messages. First, Nigerian regulators are ready to strongly protect citizens’ data rights strongly, even when facing large global companies. Second, foreign tech companies cannot simply ignore Nigerian laws and expect no consequences.
This balance between enforcing rules and negotiating settlements could shape how Nigeria’s digital economy grows, especially as more people come online and personal data becomes more valuable.
The settlement will also influence how much Nigerians trust digital services. If the settlement includes strict compliance measures, people will feel more confident that their private information is protected.
This trust could help grow sectors like online shopping, fintech, and other internet services in Nigeria. But if the settlement seems too easy on big companies, that could hurt public confidence and raise questions about fairness.
For Meta, how this case ends will affect its business not just in Nigeria but across Africa. Nigeria is the continent’s largest internet market and often sets trends for other countries.
If Meta agrees to stronger data protection standards here, it may have to follow similar rules in other African countries. On the other side, the NDPC’s handling of this case can boost its reputation as a strong and fair regulator.
A positive settlement would prove that Nigeria can hold even the biggest global companies accountable and create a clearer path for future tech investments.
As both sides prepare to return to court at the end of October, many will be watching closely. Whether they finalize a settlement or the court makes a decision, this case has already set an important example.
It demonstrates how Nigeria plans to safeguard data privacy in a digital world where platforms like Facebook and Instagram play a significant role in everyday life.
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