Twitter Ban: U.S. May Hit Nigerian Companies In Retaliation

The Nigerian Government has ignored criticism and gone ahead to block millions of citizens from accessing Twitter – the sixth most used social media platform in the country.

Checks by THE WHISTLER showed that as of 8 a.m. on Saturday, June 5, 2021, the American microblogging service was inaccessible using Nigerian network providers.

This came hours after the Minister of Information, Lai Mohammed, announced on Friday that the Federal Government was suspending Twitter indefinitely over what it called “persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence.”

Two days prior, Twitter had deleted President Muhammadu Buhari’s tweet and froze his account for 12 hours on the grounds that the Nigerian president violated its “abusive behavior” policy.

The government’s ban on Twitter may, however, see the American Government retaliating against Nigerian tech companies incorporated in the U.S. or which rely on U.S. tech companies for funding.

On Friday, President Joe Biden expanded an executive order previously issued by former President Donald Trump that will see the American Government banning its citizens from investing in about 59 Chinese companies.

Trump had targeted 31 Chinese companies in the telecom, construction and technology industries, resulting in escalation of tariffs on goods imported from China.

China had in 2019 blocked major U.S. tech companies from operating on its soil in what was termed the “tech cold war“.

Meanwhile, many believe that the Nigerian Government’s ban on Twitter may affect the proliferation of fintech services in the country as it may discourage venture capitalists from funding Nigerian tech companies.

Flutterwave

Flutterwave, a U.S. based Nigerian fintech company, was recently valued at over $1 billion after raising $170 million through New York-based private investment firm Avenir Growth Capital and U.S. investment firm, Tiger Global. The Nigerian company has raised $225 million since 2018.

Paystack, a Lagos-based payments company founded by two young Nigerians, had secured more than $10 million in funding before it was acquired for over $200 million by Stripe, an Irish-American financial services and software company.

There are concerns that should the Nigerian Government fail to reconsider its ban on Twitter, the U.S. government may reciprocate the gesture on Nigerian companies doing business in the country.

Recall that the U.S. had imposed what it called a ‘reciprocity fee’ on Nigerians seeking to travel to the United States after a similar fee was imposed by the Nigerian Government on Americans seeking to travel to the country.