On Monday, Nigeria opened a formal probe into Temu, the Chinese e-commerce giant which entered the country in 2024, over alleged data protection breaches.
The Nigeria Data Protection Commission (NDPC) says it is investigating Temu’s data processing practices, including cross-border transfers, opaque handling of personal data, and potential violations of data minimisation rules. The platform reportedly handles data belonging to about 12.7 million Nigerians, some of whose data have been exposed due to poor handling, according to the regulator.
Catch up: Over the past two years, regulators have signalled that data compliance is no longer theoretical. The same commission fined MultiChoice Nigeria ₦766 million ($567 million) in 2025 for breaches. If enforcement follows precedent, Temu could face meaningful financial and operational consequences.
Temu has responded to the allegations of data breach, according to The Guardian. The Chinese e-commerce company said it plans to “engage in open and constructive dialogue with the NDPC to address any questions or concerns.”
Zoom out: Temu’s playbook is scale fast, price low, optimise later. That strategy works best in loosely regulated markets. Nigeria, however, is tightening oversight just as foreign platforms race to capture price-sensitive consumers. Data has become part of the cost of doing business, and other countries, including South Africa, have been investigating foreign e-commerce players, like Temu and Shein, over similar concerns.
Between the lines: For local e-commerce startups, this probe cuts two ways. On one hand, stricter enforcement raises compliance costs across the board. On the other, it levels the playing field. If global giants are held to Nigerian standards, local players no longer compete against companies that treat data rules as optional friction.
Nigeria wants to be a serious digital economy. Serious digital economies enforce their data laws. Cheap goods may win customers. But compliance determines who gets to stay.
