Meta, Nigerian Government Settle $32.8 Million Data Privacy Dispute Out Of Court

By TOSI ORE

AFTER months of legal battle, both parties reach undisclosed terms to end high-profile data breach case

Meta Platforms Inc., the parent company of Facebook and Instagram, has reached an out-of-court settlement with the Nigerian government in its long-running legal dispute over a $32.8 million fine imposed for alleged data protection violations.

The settlement brings to an end a case that had sparked tensions between the global tech giant and Nigeria’s Data Protection Commission (NDPC) since February 2025.

Court Confirms Settlement

At the Federal High Court in Abuja on Monday, lawyers representing both sides announced that they had resolved the matter amicably and asked the court to adopt their settlement terms as judgment.

Meta’s counsel, Fred Onuofia (SAN), moved the motion for adoption, saying:

“We adopt the terms of settlement and urge my lord to enter them as judgment in this case.”

Counsel for the Nigerian government, Adeola Adedipe (SAN), concurred.

Justice James Omotosho, presiding over the matter, praised the parties for embracing alternative dispute resolution and entered the settlement as judgment in the case.

“Having been agreed by all parties, the terms of settlement reached in suit number FHC/ABJ/CS/355/2025, dated 30 October and filed on 31 October 2025, are hereby entered as judgment,” the judge ruled.

The details of the settlement were not made public.

Background of the Dispute

The NDPC had on 18 February 2025 fined Meta $32.8 million and issued eight corrective directives for alleged breaches of Nigeria’s Data Protection Act, signed by President Bola Tinubu in June 2023.

The Commission accused Meta of several infractions, including:

• Running behavioural advertising without users’ consent,

• Processing data of non-users,

• Failing to file its 2022 data compliance audit,

• Transferring Nigerians’ data abroad without approval, and

• Targeting minors with its advertising tools.

The NDPC also ordered the company to:

• Conduct a data protection impact assessment,

• Update its privacy policies,

• Seek explicit consent for behavioural ads, and

• Halt cross-border data transfers without authorisation.

The action followed a petition by the Personal Data Protection Awareness Initiative, which accused Meta of violating users’ digital rights.

Meta Challenges the Fine

Meta denied wrongdoing and in February 2025 filed an ex parte motion at the Federal High Court seeking to nullify NDPC’s enforcement orders.

Its lawyers argued that the Commission had violated fair hearing and due process, contrary to Section 36 of the Nigerian Constitution.

Judge Omotosho granted Meta permission to commence a judicial review of the NDPC’s actions but declined to stay enforcement of the Commission’s orders.

The NDPC, represented by Mr. Adedipe, countered with a preliminary objection, insisting the suit was incompetent and that Meta had failed to comply with court procedures under Order 34 of the Federal High Court Rules (2019).

As the legal tussle intensified, Meta reportedly threatened to shut down its Nigerian operations, escalating concerns over foreign investor confidence in Nigeria’s regulatory environment.

Settlement Ends Months of Tension

Following several adjournments and procedural motions, both parties informed the court on 3 October that they were exploring an amicable resolution.

By yesterday Monday, 3 November, the court formally adopted their settlement, bringing the months-long legal standoff to a close.

Although the terms remain confidential, sources familiar with the matter hinted that the agreement likely involves a revised compliance roadmap rather than a full payment of the fine.

The case marks one of the first major tests of Nigeria’s Data Protection Act against a global tech corporation — and signals a shift toward stricter enforcement of digital privacy laws.

Analysts: Landmark Moment for Nigeria’s Data Regulation

Industry analysts hailed the settlement as a landmark in Nigeria’s digital governance, noting that it reinforces the NDPC’s role while keeping communication channels open with foreign investors.

“It’s a delicate balance between enforcement and engagement,” said one analyst. “This case shows Nigeria is serious about data protection but also pragmatic about sustaining investor confidence.”

For Meta, the deal averts a potentially damaging precedent in Africa’s fast-evolving digital economy.