The Nigeria Data Protection Commission Turns Its Attention to Temu, a PDD Holdings Subsidiary

On 18 February 2026, the Nigeria Data Protection Commission (NDPC) announced a formal investigation into Temu, the Chinese‑owned e‑commerce platform that operates under the umbrella of Nasdaq‑listed PDD Holdings Inc. The probe is a response to alleged violations of the Nigeria Data Protection Act (NDP Act) of 2023, which impose strict obligations on companies handling personal data.

Scope of the Investigation

According to NDPC statements and corroborated by Reuters and local media, the investigation centers on the following concerns:

  1. Online Surveillance – The NDPC suspects that Temu may be collecting data that could be used for monitoring user activity beyond what is necessary for commercial purposes.
  2. Lack of Transparency and Accountability – The regulator notes that Temu’s data‑processing practices are opaque, making it difficult for users and regulators to determine how personal information is stored, processed, and shared.
  3. Cross‑Border Data Transfers – Temu is alleged to transfer data of Nigerian users to servers outside Nigeria without adequate safeguards, contravening data‑minimisation principles.
  4. Data‑Minimisation Deficits – The platform may be collecting more personal data than required to fulfill its services, raising questions about the necessity and proportionality of its data collection.

These issues are not isolated. The NDPC’s investigation follows a pattern of heightened scrutiny of fast‑growing e‑commerce platforms in Africa, and it reflects a broader effort to enforce data‑protection standards in a rapidly digitising market.

Impact on PDD Holdings

PDD Holdings, which owns Temu, is listed on the Nasdaq and has a market capitalization of approximately USD 142 billion. While the parent company has not yet issued a formal response to the investigation, the potential financial implications are significant. Under the NDP Act, companies found in breach can face substantial fines; a precedent set in 2025 saw Multichoice Nigeria fined 766 million naira (about USD 566,000) for similar violations.

If the NDPC concludes that Temu’s practices breach Nigerian law, PDD Holdings could face:

  • Direct Penalties – Fines proportional to the scale of the infringement.
  • Reputational Damage – Negative perceptions among consumers and regulators in other jurisdictions.
  • Operational Constraints – Possible restrictions on data processing or mandatory changes to data‑handling systems, potentially increasing compliance costs.

The company’s current stance, as reported by Temu on 17 February 2026, is one of cooperation. The platform emphasized its commitment to protecting user privacy and complying with applicable regulations, while stating it would engage in dialogue with the NDPC.

Broader Context

Temu’s rapid expansion has attracted roughly 12.7 million Nigerian users and an estimated 70 million daily users worldwide. The platform’s business model focuses on heavily discounted consumer goods, making it a popular choice in emerging markets. However, its data practices have drawn the attention of regulators who view the platform as a potential vector for large‑scale data harvesting.

The NDPC’s probe reflects a global trend of tightening data‑protection oversight. Companies that operate across borders must now demonstrate robust compliance frameworks to avoid costly penalties. For PDD Holdings, the case underscores the necessity of aligning its subsidiary’s data practices with international standards, especially as it continues to grow in highly regulated markets.

Current Status and Outlook

At this stage, the NDPC has opened a formal investigation but has not yet issued any determinations or fines. The outcome will depend on:

  • The evidence presented by Temu regarding its data‑processing architecture.
  • The company’s ability to demonstrate that it adheres to data‑minimisation and transparency principles.
  • Whether the NDPC finds the cross‑border transfers to lack adequate safeguards.

Should the investigation result in a ruling, it could set a precedent for how other Chinese‑owned e‑commerce platforms operate in Africa and beyond. For investors and stakeholders in PDD Holdings, the situation remains an evolving risk factor that warrants close monitoring.