It's a keloid scar. It's how how some people with melanin in their skin react to scars. Unfortunately, your doctor was probably not used to seeing it. You need to see a skin doctor and see if you can get any meds for it. Sometimes before you start healing, you can take meds (during pain medication), so keloids won't pop up, as a prevention method. Sometimes it's inevitable. However, you may be lucky and it will heal and eventually disappear, but it will take months...maybe even a year.
The needle went deeper than it should have, that's a fact.
Assuming it isn't infected, it looks like you may be putting too much lotion on it. Your skin is healing an open wound. It need to be kept clean and to have air - both. Just a very light amount of lotion - or none at all for those here who "dry-heal" will serve you better than too much. My skin reacts similarly if I use too much lotion during healing.
