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Meta’s Exit Threat Puts Over Half of Nigerian MSMEs at Risk

Olusola Blessing by Olusola Blessing
May 9, 2025
in Business, News
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Meta’s Exit Threat Puts Over Half of Nigerian MSMEs at Risk
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Meta Platforms’ warning to suspend Facebook and Instagram services in Nigeria could cripple over 56 per cent of the country’s 39.6 million micro, small, and medium enterprises, information technology experts have said. As the $290 million fine dispute between Meta and Nigerian regulators deepens, stakeholders fear that a withdrawal would devastate the digital lifelines that many small businesses depend on.

Analysts argue that while Meta’s regulatory battles are not new—citing previous penalties in the European Union and United States—the threat to leave Africa’s largest economy is particularly alarming due to its potential impact on commerce, jobs, and tax revenue.

Meta has come under fire globally for privacy breaches and controversial data practices. In 2023, it was fined a record €1.2 billion under Europe’s GDPR and another €200 million in 2025 under the Digital Markets Act for coercive data consent policies. Despite paying larger penalties in markets like Texas and the EU, the company has complied without exiting. However, in Nigeria, it has resisted settling fines from three regulatory agencies, even after losing in court. A Nigerian judge has ordered the company to pay the fines by June 2025.

In response, Meta threatened to shut down Facebook and Instagram operations in the country, prompting backlash. According to the Global System for Mobile Communications Association, a significant portion of Nigerian MSMEs depend on Meta’s platforms for sales, visibility, and customer engagement. In a country where small businesses drive nearly 50 per cent of the GDP and represent more than 96 per cent of registered enterprises, such a move would trigger far-reaching disruption.

Marketing experts say businesses built on Meta’s platforms will face immediate obstacles. A digital marketing consultant at EssenceMediacom warned that while companies may turn to alternatives like X and TikTok in the short term, long-term survival would require major investment in e-commerce infrastructure or offline channels. Job losses in marketing, influencer partnerships, and advertising are expected to follow.

The Federal Competition and Consumer Protection Commission dismissed Meta’s threat as a pressure tactic, urging the company to comply with local laws as it has elsewhere. The commission highlighted that Meta paid fines as high as $1.5 billion in Texas and $1.3 billion in the EU without considering exit.

Tech entrepreneurs and rights advocates have also weighed in. A tech startup founder criticized Meta’s approach, arguing that the company’s exit would send the wrong message and undermine its business credibility in emerging markets. Others questioned Meta’s commitment to Nigeria, a country with 164.3 million internet subscriptions and one of the world’s youngest and most active digital populations.

The Executive Director of Techsocietal warned that beyond business, the potential exit would cut off digital access for activists, community leaders, and vulnerable groups who rely on social media for advocacy and support. The group described access to digital platforms as a right closely linked to economic participation and freedom of expression.

As tensions rise, the dispute highlights a critical challenge in the global digital economy: how powerful tech firms navigate regulation in emerging markets where their platforms are often essential—not optional—for survival.

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