How Nigerian businesses lose N150.46bn to Twitter ban in 61 days ─Report

*The NetBlocks Cost of Shutdown Tool, which estimates the economic impact of an Internet disruption and/or app restriction, says it that has been 1,464 hours (61 days) since the Twitter ban, and within the timeframe, Nigerians may have lost N150.46billion

*Social media enables the brand to talk directly to consumers. It is direct marketing, specific and targeted, say consumers

Isola Moses | ConsumerConnect

In estimating the economic impact of Internet disruption, mobile data blackout, or app restriction in the past two months, a report has said that Nigerian businesses in particular and consumers in general may have lost about N150.46billion ($366.88millon) since the Federal Government suspended Twitter operations in the country June 5, 2021.

ConsumerConnect gathered this figure was calculated based on the NetBlocks Cost of Shutdown Tool.

The NetBlocks Cost of Shutdown Tool estimates the economic impact of an Internet disruption, mobile data blackout, or app restriction in a country, using indicators from global institutions such as the World Bank, International Telecommunication Union (ITI), Eurostat and US Census.

President Muhammadu Buhari, GCFR

The tool indicated that it costs the Nigerian economy N102.77million ($250,600) every hour to ban Twitter in the West African country.

It explained that has been 1,464 hours (61 days) since the ban, and that within the timeframe, Nigeria may have lost N150.46billion.

Recall the Federal Government June 4 this year had announced the suspension of Twitter in Nigeria.

Telecommunication companies (Telcos) started blocking access to Twitter June 5, after they received a directive from the Nigerian Communications Commission (NCC) to block access to Twitter in the country’s Internet ecosystem.

The government stated that the persistent use of the social media platform and microblogging site for activities is capable of undermining Nigeria’s corporate existence, hence its motive for suspension of the operations of the platform.

In respect of the ban, several groups and organisations, including the Socio-Economic Rights and Accountability Project (SERAP), had dragged the Federal Government to the ECOWAS court.

The Federal Government, however, has argued and told a Federal High Court, in Lagos, that it had not stopped Nigerians from using Twitter, claiming that several Nigerians still use the social media platform daily, report said.

This was in a counter-affidavit the government deposed to in response to an originating motion filed by human rights lawyer, Inibehe Effiong.

The affidavit said, “The applicant (Effiong) and the class he seeks to represent can still operate those Twitter accounts from anywhere in the world and even from Nigeria.

“Nigerians are still tweeting, even at this moment as the ban on Twitter is not aimed at intimidating Nigerians or an infringement on the rights of Nigerians to express their opinion.”

The Punch also cited a report by Statista that Nigeria has about 33 million active social media users, with about 26 per cent on Twitter.

It should be noted that since the ban, some Nigerians have migrated to the use of Virtual Private Networks (VPNs) to access the platform, report stated.

ExpressVPN said June 2021 that it recorded an increase of over 200 percent in Web traffic from the country since the Federal Government banned Twitter.

VPN works by changing the location of devices they run on. Small and Medium-sized Enterprises (SMEs) have said this has not been good for their businesses.

The report quoted Kalu Aja, financial planner, as saying that “social media enables the brand to talk directly to consumers.

“It’s direct marketing, specific and targeted. There is no organisation on earth, profit or not-for-profit, without some form of advocacy via social media.

“The Twitter ban raises a narrative about doing business in Nigeria, and it’s not a good narrative.

“Specifically, Twitter and social media allow Small and Medium-scale Enterprises and sole proprietors with zero marketing budgets but a smartphone to build and communicate a brand promise.”

Olanregun Ayodele, who sells women’s and men’s clothing on Twitter said, “Twitter was very important to my business. I got a lot of customers from Twitter.

“I can’t put an amount to it. But I have made money to sustain myself and my family from Twitter.

“Since the ban began, business has been stressful and tiring. Business is dry. Normally the end of the month is always booming but since the ban, it’s been so slow.

“People coming to my DM have reduced a lot; VPN has reduced lots of people and followers on Twitter.”

Babatunde Motunrayo, an SME entrepreneur, who sells female accessories on Twitter said, “Twitter was very helpful. I got 75 percent sales here, compared to other apps I sell on. I use Instagram too but make more sales from Twitter.

“It’s not been the same. Sales have been poor. Having to turn on and off your VPN most times makes you reply to clients late and before you know it, you’ve lost the client because some say they’ve got it from another vendor.

“Sometimes you won’t get messages early. Some people stopped using Twitter outright.”

Imminent truce between Nigerian Government and Twitter over the latter’s ban?

It is recalled that President Muhammadu Buhari set up a committee consisting of five ministers to negotiate with Twitter June 22, barely three week after the ban in the country.

The President had appointed Alhaji Lai Mohammed, Honourable Minister for Information and Culture, Head of the committee, which also includes Dr. Isa Ali Pantami, Minister for Communications and Digital Economy; Mr. Geoffrey Onyeama, Minister for Foreign Affairs; Mr. Babatunde Fashola (SAN), Minister for Works and Housing; Mr. Festus Keyamo (SAN), Minister of State for Labour and Employment; and Mr. Abubakar Malami (SAN), Attorney-General of the Federation (AGF).

However, dark cloud yet surrounds the planned meeting as there has not been any form of communication to Nigerian consumers from either side, there is much anxiety in the country in that six weeks after the announced composition of a government delegation, there may not be a meeting that would lead to a possible truce after all, The Guardian report said.

A presidency source in one of the ministries was quoted to have said, that the two sides (Nigeria and Twitter) are still talking.

The source stated: “I can authoritatively inform you that right now, the two sides are communicating. It is not as quiet as you imagine.

“Of course, it might be off the radar for now, but they are in touch. As soon as they want anything in public, people will hear.”

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