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Home Business & Economy

NDPC and Meta Settle $32.8 Million Data Privacy Dispute Out of Court

October 4, 2025
in Business & Economy
Reading Time: 4 mins read
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In a significant development in Nigeria’s data protection enforcement landscape, the Nigeria Data Protection Commission (NDPC) and Meta Platforms Inc. have reached an advanced settlement agreement over the contentious $32.8 million fine imposed on the tech giant for alleged data privacy violations.

The breakthrough was announced before Justice James Omotosho of the Federal High Court, Abuja, on Friday, as legal representatives from both parties requested an adjournment to finalize settlement terms rather than proceed with the scheduled ruling on preliminary objections.

The legal battle stems from a February 2025 enforcement action when the NDPC levied a substantial fine against Meta, the parent company of Facebook and Instagram, alongside eight corrective compliance orders. The Commission’s investigation was triggered by a petition from the Personal Data Protection Awareness Initiative (PDPAI), a civil society organization, which raised serious concerns about Meta’s data handling practices.

The NDPC accused Meta of multiple violations of the Nigeria Data Protection Act, including engaging in behavioural advertising on its platforms without obtaining express consent from Nigerian users. Additional infractions cited by the Commission included failure to file a mandatory 2022 compliance audit, violations of cross-border data transfer regulations, and the controversial practice of processing data belonging to non-users of its platforms.

Meta forcefully contested the Commission’s findings and enforcement process through a lawsuit filed in March 2025. Led by distinguished counsel Prof. Gbolahan Elias, SAN, and Fred Onwuobia, SAN, Meta’s legal team argued that the company was denied fundamental rights to fair hearing and due process under Section 36 of the Nigerian Constitution.

The tech giant maintained that the NDPC failed to provide adequate notice or afford Meta a reasonable opportunity to respond before issuing its final orders. Meta sought judicial review to quash the enforcement orders entirely, characterizing the Commission’s actions as procedurally flawed.

The case became mired in procedural disputes as the NDPC filed a preliminary objection challenging the competence of Meta’s suit. Through counsel Adeola Adedipe, SAN, the Commission argued that the court lacked jurisdiction to hear the matter, citing Meta’s failure to comply with Order 34 of the Federal High Court (Civil Procedure) Rules, 2019, which governs judicial review processes.

The NDPC’s legal team further contended that Meta’s originating summons and attached statements were misaligned, rendering the entire suit defective. They accused Meta of attempting to improperly substitute its reliefs through an amendment motion filed on April 23, which Meta argued was necessary to harmonize its court documents.

Justice Omotosho had previously granted Meta permission to commence judicial review proceedings but significantly declined to stay enforcement of the NDPC’s orders, allowing them to remain in effect during litigation.

At Friday’s proceedings, the atmosphere shifted dramatically as both legal teams announced they had reached an “advanced stage of settlement.” Onwuobia informed the court that draft settlement terms had been exchanged between the parties and requested an adjournment, expressing concern that a ruling on the pending motions could adversely affect ongoing negotiations.

“The parties are afraid that the ruling will affect discussions on settlement,” Onwuobia told the court, emphasizing that settlement had become the preferred resolution path.

Adedipe confirmed the development, noting that “settlement discussions have advanced appreciably” and requested time for the parties to return with finalized terms for the court’s adoption as a consent judgment.

Justice Omotosho welcomed the settlement initiative, stating that the court encourages alternative dispute resolution. He agreed to defer his ruling on both the preliminary objection and Meta’s amendment motion, adjourning the matter to October 31, 2025, for either delivery of the verdict or adoption of the settlement terms.

This settlement represents a potentially landmark resolution in Nigeria’s evolving data protection regulatory landscape. The outcome will be closely watched by other technology companies operating in Nigeria, as it may establish precedents for how data privacy disputes are resolved between international tech platforms and Nigerian regulatory authorities.

The case has highlighted the growing assertiveness of the NDPC in enforcing the Nigeria Data Protection Act and protecting the digital rights of Nigerian citizens. It also underscores the complex jurisdictional and procedural challenges that arise when global technology companies face regulatory action in African markets.

The final terms of settlement remain undisclosed, leaving questions about whether Meta will pay the full fine, a reduced amount, or whether alternative compliance measures will be agreed upon. All eyes now turn to the October 31 court date, when the contours of this significant settlement will be revealed.

WHAT YOU SHOULD KNOW

The Nigeria Data Protection Commission (NDPC) and Meta have agreed to settle their $32.8 million dispute out of court after months of legal battle. Meta was originally fined in February 2025 for processing the data of Nigerian users without their consent and violating multiple data protection laws. Rather than proceed with a court ruling that could have dismissed Meta’s challenge, both parties have negotiated a settlement with draft terms already exchanged.

The final agreement will be presented to the Federal High Court on October 31, 2025, for adoption as a consent judgment. This case marks a significant moment in Nigeria’s data protection enforcement, demonstrating both the regulator’s willingness to hold Big Tech accountable and the parties’ preference for negotiated resolution over prolonged litigation.

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