Federal Government Needs to Protect Local Businesses
Barely a month after announcing Facebook Shops, Facebook-owned WhatsApp launched WhatsApp integrated payments service to facilitate payments between businesses and shoppers in Brazil.
According to the company, the service will be launched in other countries to better allow WhatsApp users make payments at zero fees and without leaving their chats to do so.
While this move is expected to boost WhatsApp usage and enhance Facebook products across the board, it would kill local businesses, especially in emerging economies like Nigeria where startups are limited both technologically and financially.
With Facebook having more than 33 million monthly users in Nigeria, the social media giant already has waiting users to push its almost free products to at the expense of local businesses and new job creation. This likely explained why the company failed to secure approval for its payments service in India, its largest market with 400 million users. WhatsApp only moved to Brazil, the company’s second-largest market with about 120 million users after it fails to secure approval in India.
Nigerian startups can not compete with Facebook and the recent tax announced by the Federal Government through the ministry of finance would not be enough to stop these giant tech companies from taking advantage of Nigeria’s young growing market.
The Federal Government must go the way of the Chinese and restrict activities of these companies to protect local businesses like Jumia, Paga, Opay, Yudala, Kong, etc that are already creating jobs, paying taxes and contributing meaningfully to national growth.
Facebook has over 33 million monthly users in Nigeria, its largest African market and generates revenues from Nigerians without paying tax or having a physical presence in Nigeria. The same for Google.
They have been taking advantage of the country, do not let them steal our jobs and kill growing local businesses.
Dapo Alade, a software engineer, who spoke with our correspondent on the issue said “this will affect the mobile money industry the most if allowed to operate in Nigeria.
“It’s a good development but this might actually disrupt banking in general. Just imagine being able to send money to China or the United States at little or no cost. Most people will abandon banks and money laundering will flourish.
“It’s a welcome technology though but I think it should be taxed heavily.”
