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Nigeria Suffers $82.7 Million Economic Loss

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By Nicole

Nigeria is the 8th country that has felt economic impact of internet shutdowns.

Nigeria was listed as the eighth country among the top ten that saw the most economic damage from internet outages in 2022, according to a recent survey. The greatest economy in Africa suffered a $82.7 million loss over a period of 287 hours that impacted 104,400,000 internet users. The updated statistic shows that the $81.45 billion value in 2021 has decreased by 94%. The government of Nigeria’s seven-month Twitter ban, which ran from June 2021 to January 2022, was cited as a major factor in Nigeria’s internet blackout in 2022.

According to reports, Nigeria lost N104.02 million ($250,600) every hour as a result of the Twitter ban, for a total loss of N2.45 billion per day. After 222 days, the ban was purportedly lifted by the Nigerian government at a cost to the country’s economy of N546.5 billion. The prohibition cost neighborhood businesses both online sales and potential sales to large audiences. The decision to impose the restriction was made just one day after Twitter took down a message from Nigerian President Muhammadu Buhari in which he promised to punish separatists in the region who were allegedly responsible for attacks on government institutions.

The economic impact of internet outages is significant.

Nonetheless, Sub-Saharan Africa lost an estimated $244.2 million as a result of the internet outage between January and August 2022, with Ethiopia responsible for more than half with $130.2 million. This is a consequence of the Tigray war that took place in the nation. Since a war broke out between federal government troops and forces commanded by the Tigray People’s Liberation Front (TPLF), which lasted from November 3, 2020, to November 3, 2022, Tigray, which is home to more than 5 million people, has largely been without internet, telecommunications, and banking.

Ethiopia’s Prime Minister Abiy Ahmed defended the internet blackout in Tigray by claiming that it encouraged the spread of misinformation while the country battled with an armed insurrection in the north. Internet outages seriously harm a country, investors king is aware of this. Governments, especially those in Africa, should refrain from enforcing shutdowns because to their indiscriminate and unequal impact. The impact of internet outages on a nation’s economy is significant. It interferes with business, industry, and even simple financial activities. As a result, the economic and social disparities in the nation continue to grow, and the digital gap widens.

Internet connectivity is still poor in Nigeria.

In a nation like Nigeria, an internet outage is problematic because it exacerbates the already costly issue of poor internet connectivity. In 2021, Nigeria was reported to have one of the most expensive internet services in the world. According to the Global Internet Value Index published by Surfshark, a cybersecurity company with offices in Amsterdam, Nigerians overpay for the internet they receive when compared to other nations across the world. Nigeria is ranked 109th globally with an index of 0.0017, 44 times lower than the average for all 117 nations evaluated. The nation is ranked 16th in the region, with an index that is 56% below the average for Africa.

Despite the high cost of internet in Nigeria, 38% of the country’s population is online, with a goal of reaching the predicted 70% by 2025. In Nigeria, there are 152.2 million service subscribers, and as of January, broadband penetration was 44.65%, according to the Nigerian Communications Commission (NCC). Similar to the rest of Africa, occurrences of internet outages in Nigeria violate human rights, increase the digital gap, and cause a deluge of losses for companies that rely on the internet. To put things in perspective, the 222-day Twitter suspension cost the Nigerian economy about N546.5 billion.

Nigeria just can’t afford another internet shutdown.

Over time, Nigeria has witnessed a resurgence in technology and creativity across a variety of industries, including music and cinema, fashion and lifestyle, finance, gaming, and the automobile industry. These industries directly support Nigeria’s economy, and any normalization of internet outages would be disastrous for the expansion and advancement of the national economy. Due to internet outages during critical times, people have lost careers, possibilities for education and funding, access to important services, and in some cases, their lives.


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AN-Toni
AN-Toni
Editor
8 months ago

Nigeria Suffers $82.7 Million Economic Loss.Nigeria is the 8th country that has felt economic impact of internet shutdowns.Express your point of view.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
8 months ago

Nigeria was ranked eighth on the list of the top ten countries that suffered the most economically as a result of disruptions to their internet service.

Chibuzor
Chibuzor
Member
8 months ago

People have lost their jobs, opportunities for education, and sources of money as a direct result of internet outages that occurred during crucial times.

Hassan Isa
Hassan Isa
Member
8 months ago

The prohibition resulted in lost revenues for local firms both on the internet and in the opportunity to sell to huge audiences.

Taiwoo
Taiwoo
Member
8 months ago

Buhari, in which he made a commitment to punish separatists in the region who were reportedly responsible for attacks on government institutions. Buhari’s vow was made in a letter.

Adesanyaj72
Adesanyaj72
Member
8 months ago

the shutdown of the internet in Tigray on the grounds that it helped spread false information at a time when the country was fighting off an armed rebellion in the country’s northern region.

Ultra0711
Ultra0711
Member
8 months ago

Despite the internet outage in Nigeria the massive internet subscriber in the country continue to bring positivity and generating more revenue in the sector. Nigeria just needs to perfect it’s internet connectivity and invest in more infrastructure to ensure a seamless service for the people.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
8 months ago

Shutdowns have an indiscriminate and unequal impact and should be avoided by governments everywhere, but especially in Africa.

Abusi
Abusi
Member
8 months ago

The lack of internet transmission in Nigeria has made us lose a lot of money. Information technology needs to be improved upon in Nigeria. It is so important.

Iyanu12345ogg
Iyanu12345ogg
Member
8 months ago

It’s complicated when a gov’t is aware of the impact of internet on country yet proves to remain ignorant also turning deaf hears due to their self interests. They have to realize (gov’t) that affairs of the citizen matters because the last occurrence
people lost careers, possibilities for education and funding, access to important services, and in some cases, their lives.

Haykaylyon26
Haykaylyon26
Member
8 months ago

Internet showdown as make Nigeria lost a huge money to economic loss because of internet showdown our internet technology need to be improve it we need a perfect internet transmission

Christiana
Christiana
Member
8 months ago

We’ve incurred significant losses due to Nigeria’s poor internet infrastructure. Nigeria must upgrade its information technology. It’s crucial in every way.

Kazeem1
Kazeem1
Member
8 months ago

The economy of Nigeria is directly supported by these industries, and any normalization of internet outages would be catastrophic for the growth and development of the national economy.

Bola12
Bola12
Member
8 months ago

Duel in cyberspace as a means of The internet outage that cost the Nigerian economy so much money highlights the need for faster connections and more reliable connections.

Tolaniiii
Tolaniiii
Member
8 months ago

Nigeria’s enormous internet subscriber base has brought good news and increased revenue to the sector despite the country’s recent internet outage.

Tonerol10
Tonerol10
Member
8 months ago

Nigeria is the 8th country that has felt economic impact of internet shutdowns. All this loss is cause by lack of unreasonable government who don’t even understand the meaning of economic impact of internet

theApr
theApr
Member
8 months ago

Loss, debts and all sorts of misfortune all for one country alone. Nigeria ranked 8th on a list of 10 countries that has suffered the effect of shutting down their internet service

DimOla
DimOla
Member
8 months ago

Most of our transactions are done via the internet. Our accessibility to internet is expensive due to greedy leaders who refuse to bargain properly before accepting any telecoms to into the country. The shutdown of the internet in Nigeria will affect us badly. Especially now that Nigerians have their businesses on the internet.

Remi1
Remi1
Member
8 months ago

Online debate to make Nigeria suffered significant financial losses as a result of the internet standoff; our internet technology needs to be improved; we also need flawless internet transmission.

SarahDiv
SarahDiv
Member
8 months ago

Most of our businesses and transaction are done via the internet since the beginning of the cashless policy. If the internet is shutdown many Nigerians will loss a lot of money. Please, we shouldn’t imaging the colossal loss.