Explainer: What Happens If WhatsApp Exits Nigeria?

Meta, the parent company of WhatsApp and Facebook, is preparing to challenge a decision by Nigerian regulators imposing a $220 million fine for alleged abuse of market power and privacy violations.

The fine, imposed by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) last week, concludes a three-year investigation into the company’s data-sharing practices on WhatsApp, Nigeria’s most popular messaging service.

The commission’s probe uncovered “multiple and repeated, as well as continuing infringements” of Nigerian data protection and competition laws. As part of the fine, Meta has been ordered to “immediately reinstate the rights of Nigerian users to self-determine and control” their data-sharing preferences and to cease sharing WhatsApp user information with other Facebook companies and third parties without explicit consent.

Also added to the $220 million fine, the tech giant must pay $35,000 to cover the investigation’s costs which is to be settled within 60 days from July 18.

Meta’s Reaction

Meta swiftly challenged the fine imposed by the FCCPC. “We disagree with both the decision and the fine and are planning to appeal,” said a WhatsApp spokesperson, though they did not provide details on where or when the appeal will be filed.

Prior to the fine, Meta began addressing the issues around March this year and pledged to work towards a “mutually agreeable resolution,” according to the commission. However, a “remedy package” proposed by Meta and submitted in mid-April did not meet the commission’s expectations. Nigeria still expects Meta to implement the package and publish it on WhatsApp’s website within two weeks, in addition to paying the fines. 

Making A Statement With The Fine

Nigeria’s aim with the penalties against WhatsApp, which has at least 51 million users in the country, extends beyond mere compliance with its laws. The goal is to compel Meta to “cease the exploitation of consumers and their market abuse,” according to the commission.

Nigeria’s competition watchdog seems to be on a righteous mission against Meta, through this stance on Meta and signaling to other tech firms about the repercussions of exploiting Nigerian users.

Former FCCPC boss, Babatunde Irukera, who spearheaded the inquiry until his removal by President Bola Tinubu in February, framed the fine as a call for Meta to treat Nigerians “fairly, just like consumers elsewhere in the world.” He envisions his stance as a touchpoint for similar actions by other African countries, emphasizing, “Leading continental digital markets accountability reflects the values of Nigerians!”

Exits In Sight

In June, Meta began scaling back its office space in Lagos following a global round of layoffs in 2023, which included software engineers based in Nigeria. Similarly, Microsoft, which had been developing an engineering team in Nigeria for five years, closed that project in May and is reportedly considering reducing its physical presence in the country, potentially shifting roles to Kenya. In response to the potential exit of WhatsApp, if the fine is paid, social media users have touted another messaging platform, Telegram as an alternative to WhatsApp which has approximately 33.4% of users in Nigeria.