Twitter Ban: The Need to Embrace and Support the Digital Economy


Monday, June 07, 2021 / 05:53 PM / by NESG Group / Header Image Credit:  NESG Group 


As in other economies worldwide, the COVID-19 pandemic has had a tremendous impact on the Nigerian economy. In 2020, Nigeria slipped into its second recession in five years, with a GDP contraction of 3.6% in the third quarter of 2020. Unemployment rate rose to 33.3% in the fourth quarter of 2020, about 8.6 million Nigerians were estimated to have fallen into poverty in 2020, and about 13 million children were out of school. Despite its negative impact, COVID-19 has accelerated the embrace of digital technologies in our everyday lives.


According to the National Bureau of Statistics (despite the contraction of our economy), ICT and Finance emerged as two of the few growth sectors in 2020 and were the fastest-growing, with growth rates of 12.9% and 9.4%, respectively. This means that the digital sector remains crucial in accelerating Nigeria's recovery from the devastating impacts of the pandemic.


In the last two years, Nigerian startups have raised approximately US$498 million, according to Techpoint Africa. Specifically, in the FINTECH industry, Nigeria remains one of the most attractive markets in the African continent, attracting US$122 million in 2019, representing 24.8% of total investment in the continent, according to the 2019 African Tech Startups Funding Report. The industry has seen the entrants of companies and the rise of digital entrepreneurs who have continuously created value for brands, clients and other stakeholders.


For many of these businesses, social media platforms have become a veritable tool for engaging existing and potential clients over the years. As a result, platforms like Twitter which has about 17 million active users in Nigeria, have become a community for businesses and clients to exchange ideas, share progress, and address complaints towards optimal service delivery. Likewise, the digital marketing and e-commerce space has unveiled new markets for many Nigerian companies, particularly among the youth, many of whom have an active online presence. The contribution of these companies to job creation, value addition, and the economy has been salutary.


Despite the inflow of investment into the digital economy, overall Foreign Direct Investment (FDI) inflow into Nigeria is yet to achieve its true potential. In the last five years, FDI inflows into Nigeria have remained around US$1billion, according to data from the NBS. This amount is meager compared with the inflows of countries such as Egypt, South Africa, and Indonesia. At a difficult time like this, when Nigeria must grow its economy, plug into the global digital revolution, attract patient international capital, and sustained foreign currency inflow to address our foreign exchange challenges, the temporary suspension of Twitter in Nigeria sends out a wrong signal and will stand in the way of our path to rapid economic recovery.


In addition to the negative effect of the suspension on investments, small businesses that engage in digital trade will be gravely affected, raising further concerns on unemployment, poverty, insecurity, and our economy's attractiveness.


Against this background, the NESG urges the Federal Government to reconsider this decision and rescind the suspension to foster inclusive development, global competitiveness, and much faster economic growth in Nigeria.


Proshare Nigeria Pvt. Ltd.

Related to Twitter's Suspension

  1. NBC Directs Broadcasting Stations to Stop Using Twitter
  2. NCC Instructs ALTON to Suspend Access to Twitter
  3. NBA Finds No Legal Authority to Support FG's Action on Twitter Ban
  4. FG Suspends Twitter Operations in Nigeria

Proshare Nigeria Pvt. Ltd. 

Related News  On Twitter

  1. Twitter is blocked in China, here's how to access it
  2. Twitter Follows Facebook and Google, Confirms Ban On Cryptocurrency Ads
  3. Twitter founder Evan Williams steps down as CEO

Proshare Nigeria Pvt. Ltd.

Related News on Digital Economy

  1. Driving Financial Inclusion, Credit and Poverty in the Digital Economy
  2. The Nigerian Digital Economy
  3. Taxing Nigeria's Digital Economy, The Issues
  4. COVID-19: Opportunities For The Nigerian Digital Economy - Dr. (Mrs) Omobola Johnson
  5. World Bank Releases Nigeria Digital Economy Diagnostic Report
  6. The Role of Fintechs in Africa Digital Economy - Aina
  7. Why Financial Services Can Kickstart Africa's Digital Economy
  8. G20 Ministerial Statement on Trade and Digital Economy

Proshare Nigeria Pvt. Ltd.

Related News on Politics

  1. Nigeria Ranks 102 Out of 104 Countries in the Chandler Good Governance Index
  2. 2021:President Buhari Reaffirms Commitment To A United And Progressive Nigeria
  3. Nigeria and the Nation-State: Rethinking Diplomacy With the Post-Colonial World
  4. #EndSARS: Federal Government Condemns CNN, DJ Switch and Local Media Houses
  5. Lagos Coordinated Attacks: An Attempt To Weaken Southwest Economy
  6. The #ENDSARS Protests: A Fundamental Lesson in Democratic Governance
  7. President Buhari Calls for Peace, but Insists on Decisive Action Against Carnage
  8. #EndSARS: Understanding Nigeria's Emerging Active Citizens
  9. Building on Our Shared Destiny, Together - Buhari

Proshare Nigeria Pvt. Ltd. 

Related News on Regulations on Communications and Social Media

  1. Constitution of the Federal Republic of Nigeria 1999
  2. Nigeria Communication Act 2003
  3. UK Communications Act 2003
  4. Freedom of Information Act 2000
  5. Social Media Bill 2019
  6. Anti-terrorism Act 2007
  7. National Broadcasting Communications Act
  8. National Security Strategy of Nigeria 2019


Proshare Nigeria Pvt. Ltd.








Related News