Nigeria’s data protection regulator has launched an investigation into Chinese e-commerce platform Temu over concerns that the personal data of millions of Nigerians may have been improperly handled.
The probe was ordered by the National Commissioner and Chief Executive Officer of the Nigeria Data Protection Commission (NDPC), Dr. Vincent Olatunji, following indications that the company processes personal information belonging to approximately 12.7 million Nigerians.
The development was disclosed in a statement signed by Babatunde Bamigboye, Esq., CDPRP, Head of Legal, Enforcement and Regulations at the NDPC.
What the NDPC is saying
According to the Commission, the investigation was triggered by multiple concerns surrounding the platform’s handling of personal data, including issues related to online surveillance, transparency, accountability, data minimisation, duty of care, and cross-border data transfers.
- “Preliminary investigations indicate that Temu is an e-commerce platform which processes personal information of approximately 12.7 million data subjects in Nigeria with 70 million daily active users globally,” the Commission stated.
The regulator said the scale of data collection raises significant questions about compliance with Nigeria’s privacy standards.
Dr. Olatunji also cautioned companies that process personal data on behalf of other organisations to ensure strict compliance with the NDP Act.
He warned that processors who carry out data processing activities for data controllers without verifying their legal compliance could be held liable under Nigerian law.
Flashback
The probe comes amid rising regulatory attention on companies across sectors, particularly those handling large volumes of personal information.
Last August, launched a sector-wide investigation into 1,369 organisations suspected of flouting provisions of the Nigeria Data Protection Act (NDPA) 2023.
- According to the Commission, the probe targets companies in sensitive industries such as banking, insurance, pensions, gaming, and insurance brokerage.
- The Commission also gave the companies, which included 795 financial institutions, 21 days to submit evidence of compliance with the NDPA or face sanctions.
- The list of the companies published by the Commission at the time also included 392 insurance broker firms, 35 insurance companies, 10 pension companies, and 136 gaming companies.
What you should know
The NDPC last year slammed a fine of N766.2 million against Multichoice Nigeria for violating the NDPA, in what came as the largest single fine coming from the Commission since the Act came into force in 2023.
This is because the NDPC has adopted a remediation approach, which ensures that companies found to have violated the Act do the right thing to escape being fined.
The NDPC’s National Commissioner, Dr. Vincent Olatunji recently told Nairametrics that the remediation approach is being adopted to ensure business sustainability, but noted that any organization that fails to comply with its remediation recommendations will be fined.
- “Usually, when we investigate and find a breach, if they are ready to comply with the law, what is the point of making noise?
- “It’s only when an organization is unwilling to comply with the law that we are forced to impose sanctions,” he said.
He added that the Commission is also taking the nation’s economy into consideration by not making pronouncements that could discourage investments.
