Nigeria’s data protection regulator has opened an investigation into Chinese-owned e-commerce platform Temu over suspected violations of the country’s privacy laws.

The Nigeria Data Protection Commission (NDPC) said on Tuesday that it is examining how Temu collects, uses and transfers personal data belonging to Nigerian users. The probe follows concerns about possible breaches involving cross-border data transfers, transparency, accountability and compliance with data-minimisation rules.

The investigation was ordered by the commission’s National Commissioner and Chief Executive Officer, Vincent Olatunji, who warned that companies found to have broken the law could face penalties under the Nigeria Data Protection Act, 2023.

According to the NDPC, Temu processes the personal data of about 12.7 million users in Nigeria, while its global platform records around 70 million daily active users. Authorities are now assessing whether the company’s data handling practices meet Nigeria’s legal requirements, particularly regarding the transfer of data outside the country.

The regulator also cautioned that third-party companies handling data on behalf of others must ensure those organisations comply with Nigeria’s data protection law or risk being held responsible.

Temu, owned by PDD Holdings, has expanded quickly in Nigeria, offering low-cost products such as clothing, electronics and household goods through its mobile app. The company did not immediately respond to requests for comment.

The move comes as Temu faces growing scrutiny worldwide over its rapid growth and data practices. Since launching in the United States in 2022, the platform has expanded to more than 90 countries.

Nigeria’s data regulator has previously taken action against major companies. In 2023, it fined pay-TV operator Multichoice Nigeria 766 million naira (about $566,000) for breaching data protection rules.

The outcome of the investigation could affect how global technology companies manage user data in Nigeria, one of Africa’s largest digital markets.