Ever since it launched in August 2013, Telegram has been an exceptionally popular social media platform and messaging app, thanks to its utility and focus on privacy.

Telegram’s strong growth continued well into 2024. Finbold’s research found that, between April 10 and July 22, the platform added more than 485,000 monthly active users (MoU) every day.

The growth ensured that, by the middle of the summer, Telegram’s user base stood at 950 million – meaning that approximately one-eighth of humanity was using the app.

While coming just 50 million shy of 1 billion users is a major milestone, it is interesting to note that the social media platform has, at times, boasted even stronger growth. For example, in July 2023, the CEO and founder, Pavel Durov, revealed that 2.5 million people signed up to Telegram daily.

EU’s shadow over Telegram

Despite Telegram’s popularity and momentum, the platform has been gaining a different kind of attention since August 24 when the French police arrested Durov at an airport near Paris.

Though President Emmanuel Macron and his government maintain that the arrest was not politically motivated, it has nonetheless sparked a strong backlash, with many interpreting it as a crackdown on privacy and free speech.

Indeed, even the allegations of poor moderation and failure to prevent illicit activity are founded, they, nonetheless, raise important questions in the debate on the balance between privacy, surveillance, and national security.

As Andreja Stojanovic, a co-author of the research, noted “Even if genuine and undisputable illicit activity on Telegram was detected, the arrest is still likely to make many question if, by the same logic, the entire police force of a nation should be prosecuted whenever any illegal activity takes place in a private home or a hotel room.”

Nonetheless, there are no guarantees the arrest will have a profound impact on Telegram itself and, indeed, the platform has already shown significant resilience to government pressure during the Russian 2018 ban.

Russia has issued a stern rebuke to France over the recent arrest warrant issued for Pavel Durov, the CEO and founder of the popular messaging app Telegram.

The Kremlin has raised significant concerns about the validity of the charges against Durov, suggesting that the move could be politically motivated.

On Saturday, the Paris Public Prosecutor’s Office issued a warrant for Durov’s arrest, citing an ongoing investigation into organized crime, drug trafficking, fraud, and the distribution of pornographic images of minors on Telegram.

This development came as a shock to many, given Durov’s prominence as a leading technology entrepreneur and a vocal advocate for internet freedom.

Kremlin spokesman Dmitry Peskov responded sharply to the French authorities’ actions during a press briefing on Tuesday.

Peskov demanded that Paris provide concrete evidence to substantiate the serious allegations against Durov.

He warned that without a robust basis for these accusations, the arrest could be perceived as a direct assault on free speech and a potential act of political intimidation.

“The charges against Durov are gravely serious and must be supported by equally serious evidence,” Peskov told journalists. “Otherwise, it could be viewed as an attempt to stifle communication and suppress freedom of expression.”

Durov, who is a Russian-born but holds French and UAE citizenship, has been a significant figure in the tech industry.

His company, Telegram, which he founded in 2013, is renowned for its commitment to privacy and has become a crucial platform for global communication, including in politically volatile regions.

The Russian government has emphasized its readiness to provide assistance to Durov, although it acknowledges the complexity of the situation.

Meanwhile, the United Arab Emirates, where Durov also holds citizenship, has requested urgent diplomatic support from French officials and is closely monitoring the case.

Durov’s arrest comes at a time of heightened geopolitical tension between Russia and France. Relations have been strained by France’s strong stance against Russia’s invasion of Ukraine and its support for Ukraine’s sovereignty.

This backdrop has fueled speculation that Durov’s detention might be more about political maneuvering than genuine legal concerns.

According to reports, Durov had traveled to Paris from Baku, Azerbaijan, where he was rumored to have had meetings, including speculative discussions with Russian President Vladimir Putin—claims that Kremlin officials have since denied.

Telegram, which boasts over 800 million users globally, including many government and military officials on both sides of the Russia-Ukraine conflict, has denied any wrongdoing.

The company has consistently defended its platform’s neutrality and commitment to user privacy.

As the situation unfolds, Russia’s challenge to the legitimacy of France’s legal actions underscores the broader tensions between the two nations and raises questions about the intersection of politics and international legal processes.

The outcome of this case may have significant implications not only for Durov but also for the broader landscape of digital freedom and diplomatic relations.

The tax authorities in Osun and Delta states have levied hefty fines on tech giants Google Nigeria and Meta Platforms, Inc., amounting to $150 million and $200 million respectively.

The fines are for the alleged non-remittance of Withholding Tax (WHT) from content creators and entertainers in the two states from 2020 to date.

The fines were disclosed in separate letters signed by Sola Adewunmi and Solomon Ighrakpata, Executive Chairmen of the Osun and Delta States Internal Revenue Services (IRS) respectively.

These letters, also signed by Ademola Odetunde, Chief Operating Officer of LafriquePromedia Ltd., the revenue collection agent for both states, were made available to the News Agency of Nigeria (NAN) in Lagos.

LafriquePromedia, which also consults for the IRS of Plateau State facing similar challenges, issued a 14-day compliance notice starting from July 12 and July 19, respectively.

The notice warned that non-compliance would attract further consequences for the companies.

According to Odetunde, the states are demanding payment of the assessed withholding tax deducted but not remitted by the companies, at a rate of five percent.

The taxes are linked to digital services provided to content creators and practitioners in the entertainment and creative sectors within Delta and Osun states.

“We advise your companies to comply with our demands through our revenue agent within the next 14 days,” Odetunde stated, emphasizing the role of WHT as an advance payment of income tax deductible at source for specific commercial transactions.

He stressed the obligation to remit WHT to appropriate tax authorities—federal for corporate bodies or state IRS for individuals, enterprises, and partnerships—within 21 days after the month of the transaction.

As operators within the Osun and Delta digital landscapes, Google and Meta are mandated to withhold and remit taxes as per extant laws.

Odetunde, a legal practitioner, pointed out that non-resident companies providing digital services in Nigeria are required by law to withhold and remit tax on services provided to local customers.

“The concept of withholding tax was introduced to curb tax leakages and gather information on commercial activities by resident and non-resident businesses,” Odetunde noted.

He explained the procedure for implementing WHT, which includes deducting tax from payments for specified activities and remitting it to relevant authorities. Non-compliance, he warned, constitutes a criminal offense.

Over the years, the companies have allegedly failed to remit withheld taxes to local authorities in Osun and Delta states.

“When a non-resident company fails to remit WHT, a criminal offense has been committed, and the law permits prosecution and necessary steps to recover the tax,” Odetunde said.

The penalty for non-compliance includes a fine of 10 percent of the unremitted amount plus interest at the prevailing commercial rate, currently 21 percent.

Corporate officers may also face imprisonment or fines if found guilty of tax crimes.

Odetunde highlighted that LafriquePromedia has been engaging with the companies on this matter since October 2023, to no avail.

“We hope this polite demand notice for compliance will prompt your companies to act without further delay,” he concluded.

This move by Osun and Delta states underscores Nigeria’s increasing scrutiny and enforcement of tax compliance among multinational corporations operating within its borders.

The outcome of this enforcement could set a precedent for other states facing similar issues and potentially reshape the landscape of digital taxation in Nigeria.