Twitter Ban: Nigeria Loses N6.5bn In 3 Days, GDP Could Decrease By 0.2 Percent And Other Possible Implications
Nigeria loses N6.5bn in 3 days
The Buhari-led administration halted Twitter operations in Nigeria on June 4, generating strong outcry throughout social media.
In what may go down as a forerunner to approaching full-blown internet censorship, officials also urged the National Broadcasting Commission (NBC) to begin the process of licensing all over-the-top (OTT) media services and social media operations in the country.
Meanwhile, Nigerians have immediately turned to virtual private networks (VPNs) so as to bypass the Twitter ban.
There are around 40 million Twitter users in Nigeria, with an estimated 10 million daily active users. Several users now apply a VPN to access Twitter, thus, there has possibly been at least 1 million extra downloads of VPN apps in the preceding 3 days.
Today marks the third day since the ban was implemented, and it has negatively damaged businesses, brands, IT companies and the Nigerian economy as large.
According to NetBlocks, a monitoring agency which investigates cyber-security and internet administration, each day of the Twitter ban costs Nigeria around N2.18 billion.
As of yesterday, the country had lost up to N4.35 billion. Invariably, the Nigerian economy has lost an estimated N6.5 billion in the three days since the Twitter ban took effect.
Tech startups find themselves barred out
The likes of Kuda, Cowrywise, Tizeti, Flutterwave and Piggyvest have stopped tweeting for the length the prohibition has lasted so far. These software enterprises and other commercial companies could suffer from the Twitter ban.
Many of these organizations generate the highest engagements on Twitter (using spaces, threads, hashtags), which help attract clients, close deals and make more revenue.
The prohibition also decreases alternatives for gig economy employees who source clients from Twitter and affects the possibilities of many job seekers hoping to get gainful employment. Many of the companies that would put up job advertising on Twitter have stopped posting since the ban was enacted.
Telecom operators will lose data money too. As active Twitter users dwindle, less internet bandwidth is spent on social networks and data profits may take a hit.
According to the NBS, the ICT industry contributed for roughly 9.91 percent of Nigeria’s total N40 trillion GDP in Q1 2021.
E-commerce enterprises which market their items via Twitter could see revenues decline considerably. This is because many prospective consumers may be unable to use Twitter or entirely opt-out in the wake of the clampdown order.
The prohibition will also affect Twitter influencers who sell services for customers wanting to reach a greater audience with their service offering. With the current situation of things, clients may be very sceptical about ever patronising these influencers in the first place.
GDP may decline by 0.2 percent
If the Twitter ban continues to linger, the Nigerian economy may lose up to N75 billion in the next one month, and N525bn by the end of 2021.
With SME and ICT revenue anticipated to shrink, plus a loss in internet penetration, Nigeria’s GDP could decrease by at least 0.2 percent by the end of June.
In the midst of the Twitter ban, Babajide Sanwo-Olu, Lagos state Governor has asked on the government and Twitter to find an agreement and determine the way forward.
