The Federal Government and Meta Platforms Inc., parent company of Facebook and Instagram, have agreed on an out-of-court settlement of a $32.8 million fine against the latter.
The fine was imposed on the Meta Platforms for alleged data privacy violations involving Nigerian users.
Lawyers to the two parties disclosed this on Friday before the judge, James Omotosho, of the Federal High Court, Abuja.
The Nigeria Data Protection Commission (NDPC) had in February, fined Meta $32.8 million for allegedly breaching Nigeria’s Data Protection Act.
The NDPC said the sanction followed a petition accusing the company of using Nigerians’ personal data for behavioural advertising without consent, failing to file its 2022 audit, transferring data abroad, and processing the information of non-users.
It later filed an ex parte motion in court to compel the company to comply with its orders.
However, Meta also sued NDPC, contending that the commission denied it a fair hearing in the $32.8 million award. Its lawyer, Gbolahan Elias, a Senior Advocate of Nigeria (SAN), asked the court to void the orders.
But NDPC’s lawyer, Adeola Adedipe, also a SAN, urged the court to dismiss the suit, describing Meta’s filings as defective.
In a preliminary objection, the NDPC argued that Meta’s suit was “grossly incompetent” and that the court lacked jurisdiction to hear it.
The commission claimed Meta failed to comply with rules guiding judicial review under Order 34 of the Federal High Court (Civil Procedure) Rules, 2019.
After hearing both parties on 16 July, Justice Omotosho allowed Meta to pursue judicial review but refused to halt NDPC’s orders. He adjourned the matter until 3 October for a consolidated ruling on NDPC’s objection and Meta’s motion to amend its filings.
Settlement discussion
At the scheduled ruling, Meta’s lawyer, Fred Onwuobia, a SAN, urged the court to defer the ruling on the preliminary objection and the motion on notice to amend, saying the parties had “reached an advanced stage of settlement”.
He said settlement was the option both parties had resolved to take, highlighting that they were concerned the ruling could affect ongoing discussions. “The draft terms of settlement have been exchanged,” he said, urging the court to grant an adjournment for a report of settlement.
Mr Adedipe confirmed Meta’s position and said that the “settlement discussions have advanced appreciably.” He also urged the court to adjourn so they could return with settlement terms for adoption as a “consent judgement.”
Judge Omotosho said the court encouraged settlement and was “inclined not to deliver the ruling today.” He adjourned until 31 October for either a ruling or adoption of the settlement terms.
NDPC’s orders and Meta’s response
The fine against Meta was part of efforts by the NDPC to enforce the Nigeria Data Protection Act, which President Bola Tinubu signed into law in June 2023.
The dispute began after the commission issued its Final Orders on 18 February and imposed a $32.8 million remedial fee and eight corrective directives over alleged violations of the law.
It explained that the decision followed a petition from the civil society group, the Personal Data Protection Awareness Initiative, which accused Meta of engaging in behavioural advertising on Facebook and Instagram without explicit consent from Nigerian users.
The NDPC accused Meta of processing data of non-users and failing to file its 2022 compliance audit. It also alleged the company transferred Nigerians’ personal data abroad without authorisation and processed sensitive information, including that of minors, for targeted advertising.
The commission ordered Meta to conduct a data processing impact assessment reflecting Nigeria’s privacy context, update privacy policies, seek express consent before behavioural advertising, and halt the transfer of personal data outside the country without approval.
But Meta rejected both the findings and the process that led to them.
Through a suit filed on 19 March, the company said the NDPC denied it a fair hearing and due process. Its lawyer, Mr Elias, asked the Federal High Court to quash the enforcement orders, arguing they breached Section 36 of the Nigerian Constitution.
Mr Adedipe opposed the suit and urged the court to dismiss it. He said Meta’s suit and the statements attached to its ex parte motion were inconsistent, making the case incompetent.
He also argued that Meta was attempting to introduce new prayers after the court had ruled on its ex parte application, an amendment not permitted under the rules of court.
In a similar action, the commission fined Multichoice Nigeria N766.2 million for breaching the same law. It found that the Pay-TV operator violated the privacy rights of subscribers and their friends who were not subscribers, and also carried out unauthorised cross-border transfers of Nigerians’ personal data.
