Meta seeks out-of-court settlement with NDPC amid $32.8 million data privacy sanction

Meta Platforms Inc., parent company of Facebook and Instagram, on Friday, has sought an out-of-court settlement with the Nigeria Data Protection Commission (NDPC), after filing a lawsuit challenging the latter’s $32.8 million fine and a series of compliance orders issued against the former for alleged data privacy violations involving Nigerian users.

The legal teams of both parties disclosed the settlement moves to Justice James Omotosho of the Federal High Court Abuja, who had earlier fixed today for a ruling on NDPC’s preliminary objection against Meta and the tech giant’s motion to amend its court filings.

Nairametrics previously reported that the NDPC had asked the Federal High Court in Abuja to strike out a lawsuit filed by Meta Platforms Inc.

In its preliminary objection filed before the court, the NDPC insisted that Meta’s suit is “grossly incompetent” and that the court lacks jurisdiction to hear the case.

The Commission argued that Meta failed to comply with the rules guiding judicial review processes under Order 34 of the Federal High Court (Civil Procedure) Rules, 2019.

Legal Dispute 

The case stems from NDPC’s February 18, 2025, decision to fine Meta $32.8 million and impose eight corrective orders over alleged breaches of the Nigeria Data Protection Act.

The Commission said it received a petition from a civil society group, the Personal Data Protection Awareness Initiative (PDPAI), which alleged that Meta engaged in behavioural advertising on Facebook and Instagram without obtaining the express consent of Nigerian users.

The Commission accused Meta of failing to file a 2022 compliance audit, violating cross-border data transfer rules, and processing the data of non-users of its platforms, among other infractions.

But Meta, through its lawsuit, contested both the findings and the process leading up to the NDPC’s Final Orders.

In a motion filed on March 19, the tech giant argued that it was denied fair hearing and due process, stating that the Commission failed to provide adequate notice or allow it an opportunity to respond before issuing the orders.

Meta’s lead counsel, Prof. Gbolahan Elias, SAN, asked the court to quash the enforcement orders, arguing they violate Section 36 of the Nigerian Constitution.

However, NDPC’s counsel, Adeola Adedipe, SAN, countered that Meta’s originating summons and its attached statements do not align, making the entire suit defective.

He argued that Meta is attempting to substitute its reliefs—already ruled on ex-parte—with new claims under the guise of an amendment, which is not permitted under the court rules.

He urged the court to dismiss the application outright.

In response, Meta’s legal team filed a motion on April 23 seeking permission to amend its initial statement to reflect the relief already stated in the originating summons, aiming to harmonize the documents.

Justice James Omotosho, who is presiding over the case, previously granted Meta permission to commence judicial review proceedings but denied its request to stay the enforcement of NDPC’s orders.

After hearing arguments from both sides, Justice Omotosho adjourned the matter to October 3, 2025, for a consolidated ruling on both NDPC’s preliminary objection and Meta’s motion to amend its court filings.

What transpired in Court 

• At the scheduled ruling, Meta’s lawyer, Fred Onwuobia, SAN, urged the court to defer the ruling on the preliminary objection and the motion on notice to amend, as the parties have “reached an advanced stage at settlement” in this case.
• He said settlement is the option the parties have resolved to take, highlighting that the parties “are afraid” that the ruling will affect discussions on settlement.

“The draft terms of settlement have been exchanged,” he said, urging the court to grant an adjournment for a report of settlement. 

• Adedipe, SAN, confirmed what Meta’s lawyer said, adding that “settlement discussions have advanced appreciably.”
• He urged the court to adjourn so they can return with settlement terms that the court will adopt as a “consent judgement” for the parties.
• Responding to the parties, Justice Omotosho held that the court encourages settlement and, as such, he is “inclined not to deliver his ruling today.”
• He then adjourned to October 31, 2025, for either a ruling or adoption of terms of settlement.

What You Should Know 

• The fine against Meta came as one of the measures by the NDPC to protect Nigerians’ data under the Nigeria Data Protection Act, signed into law by President Bola Tinubu in June 2023.
• In a similar development, the NDPC recently slammed a N766.2 million fine against Pay-TV operator Multichoice Nigeria for breaching the Act.
• According to the NDPC, Multichoice was found to have violated the data privacy rights of subscribers and their friends who are not necessarily subscribers.
• The Commission also found that Multichoice carries out illegal cross-border transfers of personal data relating to data subjects in Nigeria.

(Nairametrics)