Following recent threat by leading social media giant, Meta, to shut down Facebook and Instagram in Nigeria over the $290 million (about N464 billion) fine imposed by three regulatory agencies, there are palpable fears that the socio-economic activities of most Nigerians would be negatively impacted, even as direct and indirect employees of the company would lose their jobs.
A tribunal recently rejected the US social media giant’s appeal against a $220 million fine imposed by the country’s consumer protection agency, the Federal Competition and Consumer Protection Commission (FCCPC), reports Daily Independent.
Meta, in its court papers said it “may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures”.
Meta’s social media platforms — WhatsApp, Facebook and Instagram — are among the most popular in the country.
According to current data, Nigeria has approximately 36.75 million social media users as at 2024. These figures represent a significant part of its population who use various social media platforms like Facebook, X, Instagram, WhatsApp, and more.
Speaking with our correspondent, a student of Yaba College of Technology, who simply identified as Esther, expressed fears over the battle between the federal government and Meta, noting that her small business may suffer if the disagreement is not settled.
“I am a final year student of Yaba College of Technology. I have been in the coconut oil business even before I gained admission. I get most of my customers through Facebook and Instagram where I showcase my products. I do get customers not only from Lagos, but also from other parts of the country. If Meta makes good its threat, it will definitely impact my business, and I don’t want that to happen, because many people will be disempowered economically and socially,” she said.
Beyond the economic aspect, most political activities are played through social media platforms like Facebook, X, formerly known as twitter and TikTok. Many politicians have their pages on Facebook where they do reach out to the general public.
There is no doubt that many politicians and their political parties would suffer huge setbacks if Meta moves out of Nigeria which is also one of its largest markets in the world.
A GSMA e-commerce survey in 2023 revealed that 56 percent of MSMEs in Nigeria sell online only through social media, while up to 19 percent use social media plus another platform such as a website or a marketplace. The situation is similar in other African countries like Kenya and Egypt.
According to the survey, over half (56 percent) of micro, small, and medium enterprises (MSMEs) in Nigeria rely solely on social media for online sales, while 19 percent combine social media with other platforms to reach customers.”
However, while the exit threat by Meta may indeed take a toll on the citizens, there have been concerns over the unethical practices by the social media giant which if not addressed promptly, may cost the country collateral damages economically and security wise.
The federal government had accused Meta of violating the country’s data protection and consumer rights laws on Facebook and WhatsApp.
The Chief Executive Officer of FCCPC, Adamu Abdullahi, had said investigations carried out in conjunction with the Nigerian Data Protection Commission (NDPC) between May 2021 and December 2023 revealed “invasive practices against data subjects/ consumers in Nigeria”.
Some countries have started marking the operations of Meta closely and taking actions against Meta to illustrate the complexities of balancing national interests with the influence of global corporations. While Meta’s exit threat may reflect the company’s resistance to what it perceives as restrictive regulations, it also underscores the challenge faced by governments in asserting control over digital infrastructure that often transcends national boundaries.
Speaking on the development, a WhatsApp spokesperson said: “The FCCPC order contains multiple inaccuracies and misrepresents how WhatsApp works, and we are urgently applying to stay the order and appeal the tribunal’s decision to avoid any impact to users.”
At the weekend, the FCCPC described Meta’s reaction as “a calculated move aimed at inducing negative public reaction and potentially pressuring the FCCPC to reconsider its decision”.
In its statement, it said that Meta had been sanctioned for “similar breaches” in Texas, India, South Korea, France and Australia, but had “never resorted to the blackmail of threatening to exit those countries. They obeyed”.
“Threatening to leave Nigeria does not absolve Meta of liabilities for the outcome of a judicial process,” the statement reads.
In response to the Nigerian Data Protection Commission, Meta said: “We disagree with the NDPC’s decision, which fails to take into account the wide range of settings and tools that allow everyone using Facebook and Instagram in Nigeria to control how their information is used.
“We’re committed to protecting user privacy and have appealed the decision.”
On Nigerian employees’ opportunity in Meta, the company, last year, said it would reduce its office space in Lagos after its global layoffs in mid-2023 affected its Nigerian team.
Meta said it would reduce its office space in Nigeria, a development that will lead to reduction of its workforce in Nigeria.
The company’s recent round of job cuts, which affected 3,600 employees globally, also extended to staff in Nigeria and other African offices. The employment opportunity can only be imagined if Meta’s threat to exit Nigeria becomes a reality.
While Nigerians await the outcome of the case, many are gripped with fear, thinking of the socio-economic damages they will suffer if the issue is not resolved amicably, which may force Meta to stop its services in the country.
However, Meta has until the end of June to pay the fine.
