Regulatory scrutiny is intensifying for Temu after the Nigeria Data Protection Commission (NDPC) opened a formal investigation into alleged data privacy violations affecting an estimated 12.7 million Nigerian users.
The ongoing probe could expose the fast-growing e-commerce platform to penalties of up to two per cent of its annual global revenue under Nigeria’s data protection laws, making it one of the most significant regulatory actions against a foreign digital platform operating in the country.
Regulatory Concerns Mount
According to sources familiar with the investigation, Nigerian authorities are examining how Temu collects, processes, stores, and transfers user data—particularly across borders. Key concerns raised by the NDPC include:
- Lack of transparency in data handling
- Weak accountability structures
- Potential online surveillance practices
- Failure to meet data minimisation standards
- Risks linked to cross-border data transfers
Preliminary findings suggest the platform processes personal data of millions of Nigerians, while serving tens of millions of daily users globally.
Sanctions or Compliance?
Despite the possibility of heavy fines, insiders indicate that regulators may prioritise corrective action over immediate penalties. The NDPC is reportedly considering a remedial compliance process, which would require Temu to align fully with Nigeria’s data protection framework.
Officials say enforcement will depend largely on the company’s level of cooperation. Firms that comply and address identified breaches may face only administrative or remedial fees instead of full sanctions.
Under the Nigeria Data Protection Act, violators risk fines of up to 2% of annual gross revenue or N10 million, whichever is higher.
Temu Responds
Temu has confirmed receiving the inquiry and says it is cooperating with Nigerian authorities.
The company reiterated that protecting user data remains a top priority, adding that it is committed to complying with all applicable laws while maintaining open engagement with regulators.
A Platform Under Global Scrutiny
Owned by PDD Holdings, Temu entered the Nigerian market in November 2024 and quickly gained traction through aggressive pricing, heavy discounts, and a mobile-first strategy. Within months, it became one of the most downloaded shopping apps in the country.
However, the platform operates without a registered local entity in Nigeria—an issue analysts say complicates regulatory oversight and enforcement.
Temu has also faced regulatory actions in other jurisdictions, including fines in South Korea over undisclosed data transfers and penalties in the United States linked to compliance failures.
Implications for Nigeria’s Digital Economy
The outcome of the NDPC investigation could set a major precedent for how Nigeria regulates foreign digital platforms handling citizens’ data without a physical presence in the country.
Experts say the case highlights broader concerns about data sovereignty, consumer protection, and accountability in Nigeria’s rapidly expanding digital economy.
It also comes amid increasing calls for global tech companies and e-commerce platforms to establish local offices and comply more strictly with national laws.
As the investigation continues, industry watchers say the final decision could reshape how international tech firms operate in Nigeria—balancing innovation and market access with stricter data protection compliance.
