FG urged to refocus on Meta’s impact for digital growth

The Nigerian government has been urged to refocus its strategy on fostering long-term growth within its digital economy, rather than being solely preoccupied with the $220 m fine recently imposed on Meta for breaching data privacy laws.

The Federal Competition and Consumer Protection Commission announced the fine in July 2024, citing Meta’s alleged violations of Nigeria’s data privacy laws.

According to the country’s consumer watchdog, Meta’s Facebook and WhatsApp platforms engaged in unauthorised data sharing, denied users control over their personal information, and abused its market dominance.

Meta has since rejected the allegations and confirmed plans to appeal the ruling, stating that its data policies were clearly communicated to users and that it disagrees with the fine imposed by Nigerian regulators.

The fine has reignited debates on Nigeria’s regulatory approach to the tech giant. Some experts argue that focusing on penalties may provide short-term financial gains but is not a sustainable competition strategy.

Tech Policy Attorney and Founding Partner of Johnson & Wilner LLP, Basil Udotai, cautioned that the government should not prioritise short-term financial gains over long-term growth.

“While fines, such as the one imposed on Meta, may generate short-term financial gains, they neither align with Nigeria’s broader economic priorities nor are sustainable as a competition strategy,” he wrote in a column published on BusinessDay, Monday.

“A more enduring approach would be to ensure that financial benefits accruing from digital platforms flow to users with content-driven engagements and economic participation and to the government through structured taxation rather than through one-off punitive levies.

Udotai emphasised that Nigeria urgently needs digital infrastructure, foreign investment, and technology-driven growth.

He warned that adopting a heavy-handed regulatory model similar to the European Union’s could discourage global tech firms from investing in the country’s digital ecosystem.

The Meta case raises broader questions about Nigeria’s approach to regulating global tech firms. Some experts suggest that adopting a model similar to the European Union’s—which has imposed hefty fines on Silicon Valley firms—could deter investment and slow the country’s digital transformation.

“The challenge is not merely to curb Big Tech’s dominance but to leverage its presence for national development,” Udotai said.

“Nigeria is not the EU; while Brussels can afford to levy multi-billion-dollar fines on tech giants without fear of capital flight or service disruptions, Nigeria’s digital economy remains in its formative stages.”