Meta Platforms announced on Wednesday that it had removed approximately 63,000 Instagram accounts in Nigeria involved in financial sexual extortion scams, primarily targeting adult men in the United States. These Nigerian fraudsters, often called ‘Yahoo boys,’ are infamous for various scams, including posing as individuals in financial distress or as Nigerian princes.
In addition to the Instagram accounts, Meta also took down 7,200 Facebook accounts, pages, and groups that provided tips on how to scam people. Among the removed accounts, around 2,500 were part of a coordinated network linked to about 20 individuals. These scammers used fake accounts to conceal their identities and engage in sextortion, threatening victims with the release of compromising photos unless they paid a ransom.
Meta’s investigation revealed that most of the scammers’ attempts were unsuccessful. While adult men were the primary targets, there were also attempts against minors, which Meta reported to the National Centre for Missing and Exploited Children in the US. The company employed new technical measures to identify and combat sextortion activities.
Online scams have increased in Nigeria, where economic hardships have led many to engage in fraudulent activities from various settings, including university dormitories and affluent neighbourhoods. Meta noted that some of the removed accounts were not only participating in scams but also sharing guides, scripts, and photos to assist others in creating fake accounts for similar fraudulent purposes.
Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has imposed a fine of $220 million on Meta Platforms Inc., the parent company of Facebook, for ‘multiple and repeated’ breaches of local consumer data protection laws in a move to enforce data privacy regulations.
The FCCPC’s investigation into Meta began last year following Nigerian consumers’ complaints regarding personal data mishandling. The investigation revealed that Meta had failed to comply with several provisions of Nigeria’s data protection regulations, including obtaining proper consent from users before collecting their data and ensuring the security of the information gathered, a direct violation of the Nigeria Data Protection Regulation (NDPR), following a 38 months investigation. The NDPR, enacted in 2019, mandates that organisations must seek explicit consent from individuals before collecting their personal information, aiming to safeguard the privacy of their citizens.
The fine is one of the largest penalties imposed by an African regulator on a global tech company. It signals a growing trend among nations to assert digital sovereignty and enforce stringent data protection measures. The action against Meta is expected to have far-reaching implications, prompting other multinational companies to reassess their data practices in Nigeria and potentially other African markets.
The following development highlights the regulatory pressure on technology companies to prioritise data protection. As digital services expand globally, enforcing stringent data privacy laws is becoming more critical. For Nigeria, the fine against Meta expresses the country’s commitment to holding multinational companies accountable and protecting the rights of its citizens in the digital landscape.
The Nigerian Government has announced the development of a locally-made blockchain called ‘Nigerium’, designed to secure national data and enhance cybersecurity. The National Information Technology Development Agency (NITDA) is leading this initiative to address concerns about reliance on foreign blockchain technologies, such as Ethereum, which may not align with Nigeria’s interests.
NITDA Director General Kashifu Abdullahi introduced the ‘Nigerium’ project during a visit from the University of Hertfordshire Law School delegation in Abuja. He highlighted the need for a blockchain under Nigeria’s control to maintain data sovereignty and position the country as a leader in the competitive global tech landscape. The project, proposed by the University of Hertfordshire, aims to create a blockchain tailored to Nigeria’s unique requirements and regulatory framework.
The indigenous blockchain offers several advantages, including enhanced security, data control, and economic growth. By managing its own blockchain, Nigeria can safeguard sensitive information, improve cyber defence capabilities, and promote trusted transactions within its digital economy. The collaboration between the private and public sectors is crucial for the success of ‘Nigerium’, marking a significant step towards technological autonomy.
If successful, ‘Nigerium’ could place Nigeria at the forefront of blockchain technology in Africa, ensuring a secure and prosperous digital future. This initiative represents a strategic move towards maintaining data sovereignty and fostering innovation, positioning Nigeria to better control its technological destiny.
A new International Monetary Fund (IMF) report reveals that Nigeria and several other developing nations need more digital infrastructure to effectively deploy AI. The shortfall persists despite Nigeria’s recent launch of its first Multilingual Large Language Model (LLM) and unveiling of an AI strategy in April. The IMF’s ‘AI Preparedness Index,’ which evaluates 174 economies, highlights that many developing countries like Nigeria are trailing in AI readiness due to inadequate digital infrastructure.
According to the Index’s interactive map, most African nations, with exceptions like Namibia, Botswana, and South Africa, exhibit low preparedness for AI. Wealthier economies are generally better equipped for AI adoption, and the IMF warns that the disparity could exacerbate existing global inequalities. The report suggests that while AI has the potential to enhance productivity and expand opportunities in countries like Nigeria, it may also widen the gap between those who can leverage the technology and those who cannot.
To address Nigeria’s challenges, the IMF recommends that emerging markets and developing economies invest heavily in digital infrastructure and worker training. For advanced economies, the priority should be on expanding social safety nets and fostering AI innovation and integration. International coordination is also essential to establish regulations that protect against AI risks and abuses while building public trust in the technology.
This week, Nigeria’s markets regulator has ordered the world’s largest cryptocurrency exchange, Binance, to halt its operations in the country. The move follows Nigeria’s central bank’s decision in 2021 to ban banks and financial institutions from dealing in or facilitating transactions in digital currencies. The Nigeria’s Securities and Exchange Commission said that Binance Nigeria Limited, which was soliciting Nigerian investors through a website, was illegal. The order indicated that the company was not registered or regulated, making it illegal.
Despite the ban, Nigeria’s young, tech-savvy population has eagerly adopted cryptocurrencies, for example using peer-to-peer trading offered by crypto exchanges to avoid the financial sector ban. In an effort to find a middle ground between an outright ban on crypto assets and their unregulated use, Nigeria’s SEC published a set of regulations for digital assets last year.
As a result of the ban and the SEC’s actions, Binance is now required to halt its operations in Nigeria. It remains to be seen how the Nigerian authorities will implement the regulations and how the cryptocurrency industry will evolve in the country in the future.
Earlier this month the U.S. Securities and Exchange Commission (SEC) also sued Binance and Coinbase for allegedly breaching its rules.
Nigeria is the first African country that introduced the digital version of its national currency. The e-Naira currency has been in use for more than a year now, but still lacks mass adoption. In a country of 200 million people, only 0.5% is using e-Naira on a daily basis. The Nigerian government is already using some of the programmability features of digital money, and it’s looking now to enhance them. According to reports from Bloomberg, the Nigerian government is seeking help from the US private tech companies to improve technology behind the virtual currency. Final idea is that at the end of this process, the Central bank of Nigeria achieves full custody and know-how on the technology needed to run a virtual currency environment.
The Nigerian government confirmed that they are looking at: ‘developing additional features and enhancements.”
