Nigeria Suffers $82.7 Million Economic Loss from Internet Shutdowns in 2022

According to a latest report, Nigeria has been ranked 8th among the top ten countries that felt the most economic impact of internet shutdowns in 2022.

Africa’s largest economy lost $82.7 million, which lasted for 287 hours, and affected 104,400,000 internet users. The new figure indicates a 94 percent decline in the 2021 value of $81.45 billion.

A major cause of Nigeria’s internet shutdown in 2022, was attributed to the seven-month ban on Twitter by the Nigerian government, which lasted from June 2021 to January.

It was reported that Nigeria lost N104.02 million ($250,600) every hour to the Twitter ban, bringing the daily losses to N2.45 billion. The Nigerian government reportedly lifted the ban after 222 days, which cost the Nigerian economy N546.5 billion.

As a result of the ban, local businesses lost both online revenues and potential sales to mass audiences. The decision for the ban came just a day after the platform removed a tweet by Nigeria’s president Muhammadu Buhari after he threatened punishment for regional secessionists blamed for attacks on government buildings.

On the other hand, Sub-Saharan Africa due to the internet shutdown lost an estimated $244.2 million between January and August 2022, with Ethiopia accounting for over half with $130.2 million. This is a result of the Tigray war that occurred in the country.

Tigray, which is home to more than 5 million people, has been mostly without internet, telecommunications, and banking since war broke out between federal government troops and forces led by the Tigray People’s Liberation Front (TPLF), which lasted from the 3rd of November 2020 to November 3, 2022.

The Ethiopian Prime Minister Abiy Ahmed defended the shutdown of the internet in Tigray, stating that it supported the spread of disinformation as Ethiopia dealt with an armed rebellion in the northern part of the country.

Investors King understands that Internet shutdowns cause profound damage to a nation. Also, given their indiscriminate and disproportionate impact, governments, most especially African governments should refrain from imposing shutdowns.

Internet shutdowns impact on a country’s economy is massive. It disrupts commerce, industry, and even basic financial transactions. This, in turn, increases the country’s economic and social inequalities and broadens the digital divide.