In April 2025, a legal ruling by Nigeria’s Competition and Consumer Protection Tribunal marked a pivotal moment in the intensifying standoff between Meta Platforms Inc. and the Nigerian government. The tribunal upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) on Meta—parent company of WhatsApp, Facebook, and Instagram—for multiple violations of Nigeria’s data protection and consumer laws. In response, Meta raised the possibility of withdrawing its services from Nigeria, a threat that, if realised, could have sweeping consequences for the country’s digital economy, information ecosystem, and millions of daily users.
A looming threat to small businesses
The impending shutdown of WhatsApp, a cornerstone of Meta platforms, is poised to impose steep switching costs on thousands of small and medium-sized enterprises (SMEs) that have avoided traditional brick-and-mortar models for digital platforms or depend on the app to finalise sales.
Take Oluwafayokunmi Olutomiwa, who, as a 22-year-old engineering student in 2023, used WhatsApp and other Meta platforms to grow her to ₦15 million ($9,000) in annual revenue just two years after launching. Olutomiwa told TechCabal that her enterprise raked in ₦100 million ($60,000) in 2024—without a walk-in office.
“I use Instagram to spread awareness and WhatsApp is where I close sales,” Olutomiwa told TechCabal, emphasising the platform’s role in enabling direct, real-time customer engagement. The app’s interface allows her to manage bespoke orders requiring constant back-and-forth, a level of customisation she believes websites struggle to replicate. “A website is mostly one-sided,” she said. “Even when you see ‘chat with our staff,’ it often redirects to WhatsApp anyway.”
A shutdown would stall her operations.
Building a following on other non-Meta social media platforms and designing a new platform to replicate WhatsApp’s fluid order management is a daunting prospect, she told TechCabal on a call. “How do I create enough channels for people to place orders with multiple modifications without mixing up jobs or causing miscommunication?”
The cost of transitioning—both in time and resources—looms large for Olutomiwa and others like her.
Caroline Wabara, founder of WAB Digital, a marketing agency that also helps e-commerce businesses integrate WhatsApp on their websites, echoed these concerns. Her agency funnels leads from digital ads directly into WhatsApp, where businesses showcase products via the app’s catalog and close deals.
Wabara herself relies on WhatsApp as her “virtual office”, using it to promote services, finalise sales, and host training sessions. “It’s where I close the deal,” she said. Her online ads automatically add clients to WhatsApp groups upon signup, a tactic widely used by digital trainers, a sect of service providers that have become increasingly popular.
WhatsApp’s network effect—boasting over 51 million active users in Nigeria alone—makes it a go-to for entrepreneurs targeting local markets. Its ubiquity has spawned an ecosystem of adjacent businesses, from food vendors taking orders via WhatsApp bots to fintechs enabling in-app payments. However, the platform’s dominance is a double-edged sword.
“Businesses will have to rebuild their contact lists from scratch on new channels,” Wabara noted. “You don’t have a CRM-ready email list to pivot to. You’re starting over, spending money to redirect customers.”
While there are alternatives, the size of the WhatsApp user base and the upending of its network effect would have businesses scrambling for ways to promote their products and services.
Olutomiwa says it will be most profound for a generation of Gen Z entrepreneurs like her, who built their livelihoods on the platform’s accessibility. The shutdown could exacerbate economic pressures, potentially fueling unemployment and stifling innovation in Nigeria’s digital economy.
The origin of the conflict
The friction between Meta and Nigerian regulators began in May 2021, following WhatsApp’s controversial update to its privacy policy. Nigerian users were reportedly required to accept the new terms, which required collecting and sharing user data without proper consent, or risk being locked out of the app, a tactic that sparked outcry over user consent and fairness. Regulators alleged that Meta was treating Nigerian users less favorably compared to their counterparts in jurisdictions like the European Union, where stricter data protection laws limited how user information could be handled.
Over a 38-month investigation, Nigerian authorities claim they uncovered a troubling pattern: Meta allegedly collected and transferred users’ personal data without proper consent, failed to appoint a local data protection compliance body, and withheld mandatory audit reports. More critically, the company was accused of abusing its dominant market position to impose exploitative terms and discriminatory practices.
Meta’s pushback
Meta has not taken the ruling lightly. It contested the fine because the FCCPC’s directives were legally ambiguous, technically impractical, and not reflective of existing Nigerian law. The company also argued that Nigerian users had a choice: accept the privacy terms or stop using WhatsApp.
But the tribunal disagreed, affirming both the legitimacy of the fine and the expectation that Meta must align with Nigerian regulations. In the aftermath, Meta warned—via court filings—that it may withdraw its services to shield itself from regulatory uncertainty. The FCCPC dismissed this as a pressure tactic, noting that Meta had absorbed similar penalties elsewhere, such as in India and Brazil, without threatening an exit.
A country on the brink of a digital disconnect
Should Meta carry through with this threat, the impact on Nigeria would be enormous. WhatsApp alone boasts 90–100 million users in Nigeria, making the country its largest African market and the 10th largest globally. With a 95% penetration rate among internet users, WhatsApp is more than a messaging app—it is the digital lifeline for commerce, family communication, religious communities, activism, and emergency services.
Instagram and Facebook also play vital roles, especially for small businesses, influencers, content creators, and community organisers who rely on these platforms to reach audiences and generate income. The disruption of these services would leave a gaping void in Nigeria’s social and economic fabric.
A costly departure
Meta’s investments in Nigeria are neither trivial nor recent. Since opening its Lagos office in 2021—the first on the continent with a full engineering team—Meta has supported digital innovation through partnerships like NG_Hub with Co-Creation Hub, created the Small Business Group Operations Centre, and backed infrastructure initiatives such as the 2Africa subsea cable project. The company also contributed tax revenue, part of a N3.85 trillion collective payment by global tech firms in the first nine months of 2024.
Even during the COVID-19 pandemic, Meta offered cash grants and ad credits to over 900 small businesses in Nigeria and South Africa. Its training programs, launched with MTN and Microsoft, have equipped thousands of Nigerian youth with ICT and business skills. These efforts underscore Nigeria’s strategic importance to Meta, not just as a market, but as a digital innovation hub.
A precedent for Africa and the world
Globally, WhatsApp has never exited a market over regulatory pressure, with the sole exception of China, where the app has been blocked since 2017 due to government censorship. Citizens can only access the social media platform using a reliable Virtual Private Network (VPN). Even in countries like India and Brazil, where the Meta platforms faced severe legal challenges and temporary bans, it has remained operational, choosing negotiation and legal defense over withdrawal.
If Nigeria becomes the first democratic country where Meta pulls its services due to regulatory disputes, the precedent could ripple across other developing nations seeking to assert digital sovereignty. It would send a clear message: powerful tech companies must adapt to local laws or risk being shut out.
The path forward
At its core, the standoff reflects a broader tension between global tech giants and sovereign governments navigating the complex terrain of privacy, consent, and consumer protection. Nigeria’s regulators are signaling that compliance with local laws is non-negotiable, especially in a digital age where data is currency and power.
Yet, a hardline approach could backfire. For millions of Nigerians, losing access to Meta platforms such as WhatsApp, Facebook, and Instagram would be akin to losing access to electricity or roads—a sudden and disruptive shift in daily life and productivity. For Meta, walking away from one of its most valuable African markets would not just mean lost revenue but reputational damage and diminished influence on the continent.
The challenge, then, is to find a middle ground where user rights are protected, regulatory concerns are addressed, and the vital digital connections between Nigerians and the rest of the world remain intact.
If Meta leaves Nigeria, the country will not go offline, but it will feel the silence.
