Chinese e-commerce platform Temu is under fresh scrutiny in Nigeria after regulators opened an investigation into how it handles users’ personal data; a probe that could lead to fines amounting to 2% of the company’s annual global revenue.
Nigeria’s data protection watchdog, the Nigeria Data Protection Commission (NDPC), says preliminary findings suggest the platform processes the personal information of about 12.7 million Nigerians. Globally, Temu reports roughly 70 million daily active users.
The commission is examining how the company collects, stores and transfers data, particularly across borders. Officials have raised concerns around transparency, accountability, data minimisation and whether users are adequately protected under Nigerian law.
Under the Nigeria Data Protection Act, companies found to be in breach risk paying up to 2% of their annual gross revenue from the previous year or ₦10 million, whichever is higher.
Still, regulators say punishment is not the immediate goal. “The objective is compliance first,” a senior official familiar with the matter said. According to the official, companies that cooperate and address identified gaps may face corrective measures rather than heavy financial penalties.
Temu has acknowledged receiving the inquiry and says it is working with regulators. In a statement, the company stressed that protecting user privacy remains a priority and pledged to comply with Nigerian laws.
Owned by PDD Holdings, Temu entered the Nigerian market in late 2024. Its rapid rise has been fuelled by aggressive advertising, deep discounts and a mobile-focused shopping experience. Despite its popularity, the company does not operate as a locally registered entity in Nigeria, a structure experts say can make oversight more complex.
The investigation in Nigeria comes amid broader international scrutiny. In 2025, the platform faced penalties in South Korea over cross-border data transfer issues and reached a civil settlement in the United States tied to seller verification rules.
Back home, some lawmakers are pushing for tighter controls on foreign digital platforms. Proposed legislation would require major tech and e-commerce companies operating in Nigeria to establish physical offices in the country, a move supporters argue would improve accountability and strengthen tax compliance.
For many Nigerian shoppers, however, the regulatory questions feel far removed from their everyday experience. Users interviewed described the platform as affordable and dependable, citing timely deliveries and competitive pricing.
But as Nigeria strengthens enforcement of its data protection laws, the outcome of this case could set an important benchmark. It signals a growing expectation that global tech firms benefiting from Nigeria’s vast digital market must also meet its regulatory standards, not just in growth, but in governance.
