Economy
Effect of Twitter Ban on Nigerian Economy and Mobile Data Usage
By Lead Web Praxis Media
Twitter is one of the largest messaging apps in the world. Others include Facebook, WhatsApp, LinkedIn etc.
The platform is well known for a place of acquiring knowledge, attaining information and enabling communication between people of different races and those of the same race.
The app was founded on March 21, 2006. However, due to the deletion of a tweet by the Nigerian government, the messaging app was banned to be used by her users in Nigeria on June 4, 2021.
This ban came as a shock to many people and it ignited international concerns. This is because the app has been known to be an avenue for voicing out your desire as a citizen.
In fact, prior to the ban, the account of the former President of the United State of America, Donald Trump, was deleted and nothing happened to the “bird app” in the United State of America.
This article tends to look at the consequences/effect of the Twitter ban on the Nigerian economy and mobile data usage.
Break in Communications System
The messaging app has been known to be a means of communication for different purposes including for corporation organizations. With the ban, there is a break in this communication and this greatly affects the productivity of businesses and people. Some major businesses in the country depend on the app to communicate effectively with their audiences.
In fact, the Nigerian government that banned the app usually used it as a means of communication to the masses, but with this ban, the communication channel is broken among other deleterious effects.
Even though the app can still be assessed with the Virtual Private Network (VPN), this is still not as effective as before. Moreover, some of the VPNs do not work and this greatly affects the overall efficiency of people and businesses. This subsequently has a negative effect on the economy of the country
Increase in Unemployment Rate
Even though the major purpose of the app is for communication between people, it has developed into a money-making machine for some people, most especially business owners. Most businesses depend on the app to communicate and advertise with their audience. Some have even built a high number of followers on the app.
However, with the ban, many businesses are cut off from their businesses and this greatly affects their revenue generation. This in turn affects the general outlook of the economy. In other words, the ban also adds more spices to the previous unemployment rate in the country.
Decrease in Traffic Generation for Business
Just like many other messaging apps, Twitter is also known as a traffic generation tool for businesses. This implies that businesses use it as a platform for generating leads whether organically or via paid advertisement. This greatly affects the revenue of the business as the first step in the revenue generation is lead generation. Subsequently, this has a negative effect on the economic condition of the country.
Researchers have shown that many businesses that rely solely on Twitter for their businesses are now trying to adapt to another platform. Hence, many of them now resolve to build their own email list as it is not dependent on any platform and gives them the liberty of having smooth communication with their audience at any point in time.
Negative Impact on International Relations and Trade
Most of the resources that are used in Nigeria are importers and the banning of the messaging app has a negative effect on how the international community perceives us and our trading relationship in general. In fact, many international figures stated their opinion when the declaration of the ban was made.
This in turn will affect the way the international community relates with us in all sectors including the trading sector. Subsequently, this negatively affects the economy of the country and affects the way of living of Nigerians.
Social media has formed an important part of the Nigerian lifestyle over the past years and with the ban, the effect is greatly felt. Apart from that, the economy of the country is also affected as many Nigerians depend on the app to generate revenue for themselves.
As the day goes by, the Nigerian government and her economy are known to lose huge billions of dollars every month. To curb the effect of Twitter ban, the government should reverse the ban as many citizens depend on the “bird app” to survive.
However, Nigerians should also start building their email list as it is the only way to boycott the negative effect of banning any social media platforms.
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By Dipo Olowookere
A 0.38 per cent loss was suffered by Nigerian stocks on Tuesday on the back of continued selling pressure from investors embarking on profit-taking.
Data from the Nigerian Exchange (NGX) Limited showed that the contraction was influenced by the 1.78 per cent decline recorded by the insurance sector, the 0.24 per cent slip printed by the consumer goods index, and the 0.09 per cent drop posted by the energy space, offsetting the 0.75 per cent growth achieved by the banking sector and the 0.21 per cent growth recorded by the industrial goods segment.
Investor sentiment was weak during the trading day, as the bourse ended with 13 price gainers and 40 price losers, representing a negative market breadth index.
LivingTrust Mortgage depreciated by 10.00 per cent to N3.42, Multiverse also shed 10.00 per cent to N22.95, McNichols dropped 9.92 per cent to N5.45, Thomas Wyatt dipped by 9.87 per cent to N3.56, and Eterna lost 8.57 per cent to trade at N33.00.
On the flip side, AVA Capital improved by 9.94 per cent to N9.95, Livestock Feeds expanded by 9.71 per cent to N8.65, Neimeth increased by 8.43 per cent to N9.00, AIICO gained 3.47 per cent to settle at N4.18, and Oando grew by 3.30 per cent to N36.00.
A total of 1.6 billion equities valued at N28.7 billion exchanged hands in 54,160 deals yesterday versus the 923.0 million equities worth N37.9 billion traded in 72,544 deals on Monday, indicating a 73.35 per cent surge in the trading volume, a 24.27 per cent decline in the trading value, and a 25.34 per cent slip in the number of deals.
The busiest stock was Japaul, which transacted 904.4 million units for N2.7 billion. Sterling Holdings sold 54.0 million units valued at N431.9 million, FCMB exchanged 49.5 million units worth N545.9 million, Chams traded 44.9 million units for N199.2 million, and Neimeth sold 42.4 million units worth N327.8 million.
Business Post reports that the All-Share Index (ASI) gave up 927.70 points to 244,802.83 points from 245,730.53 points, and the market capitalisation receded by N599 billion to N158.016 trillion from N158.615 trillion.
By Adedapo Adesanya
The Naira put up a better performance against the United States Dollar in the various segments of the foreign exchange (FX) market on Tuesday, August 4.
In the parallel market, it improved its value by N5 to settle at N1,400/$1 compared with the previous day’s value of N1,405/$1, and at the GTBank forex desk, it appreciated by N1 to close at N1,373/$1, in contrast to the preceding session’s N1,374/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX) segment, the Nigerian currency gained N2.28 or 0.17 per cent against the greenback to quote at N1,362.55/$1 compared with the N1,364.83/$1 it was exchanged a day earlier.
Also in the official market, the local currency appreciated against the Pound Sterling during the session by N6.48 to finish at N1,831.41/£1 versus N1,837.89/£1, and chalked up N5.22 on the Euro to sell at N1,568.71/€1 versus N1,573.93/€1.
Interbank FX transactions increased 14 per cent day-on-day as market makers’ activities raised total Dollar volume exchanged to $156.23 million, more than 132 per cent above $137.05 million in turnover at the previous close.
The interbank FX turnover rose despite a marginal rise in deals at the NFEM window as data from the central bank put Tuesday’s quote at 139 from 138.
As for the cryptocurrency market, major tokens were mixed as global stock indexes hit fresh records on renewed enthusiasm for artificial-intelligence-related shares.
With cheaper oil, easing rate expectations and a strong risk-on rally in equities supporting digital assets, analysts say crypto appears to be driven by internal market dynamics rather than macroeconomic factors, even as traders watch for a potential Strait of Hormuz deal.
It was reported overnight that Iran and Oman were close to an agreement to reopen the Strait of Hormuz, with an announcement targeted for Wednesday.
Binance Coin (BNB) grew by 1.8 per cent to $600.54, Bitcoin (BTC) rose by 0.9 per cent to $64,199.86, Solana (SOL) jumped by 0.8 per cent to $73.95, and Ethereum (ETH) advanced by 0.7 per cent to $1,867.21.
But Cardano (ADA) depreciated by 1.9 per cent to $0.1908, TRON (TRX) dipped by 0.6 per cent to $0.3268, Dogecoin (DOGE) slumped by 0.5 per cent to $0.0698, and Ripple (XRP) crashed by 0.4 per cent to $1.06, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Adedapo Adesanya
Brent crude dropped below $80 per barrel, precisely losing $4.41 or 5.3 per cent to settle at $79.36 a barrel on Tuesday, after comments by officials from the United States and Qatar raised hopes for a diplomatic resolution to the Iran war, which could improve oil flows through the Strait of Hormuz.
Also, the US West Texas Intermediate (WTI) futures depreciated by $4.57 or 5.7 per cent to trade at $75.77 a barrel.
US Secretary of State Marco Rubio said on Tuesday there was progress in talks with Iran and Oman about moving more ships through the strait, but a final agreement was yet to be reached.
Also, Treasury Secretary Scott Bessent had said earlier on Tuesday that a deal with Iran to reopen the strait could come as soon as Tuesday or Wednesday.
Qatar’s Foreign Ministry spokesperson Majed al-Ansari said efforts to secure a diplomatic resolution to the war were continuing.
Qatar said it has discussed with US President Donald Trump ways to reduce escalation and converge viewpoints between the US and Iran.
Meanwhile, the latest round of US-facilitated talks between Israel and Lebanon began on Tuesday and will continue through Thursday.
Amid this, Iran still wants control over inbound shipping and visibility over outbound traffic through the Strait of Hormuz, with the ability to intervene if necessary, as part of a plan being discussed with Oman to reopen the strategic waterway.
Market analysts noted that the prospect of a diplomatic solution to the conflict has helped remove some of the geopolitical risk premium in oil prices. If negotiations between the US and Iran make meaningful progress, the market could continue pricing in a lower probability of supply disruptions.
Disruptions to shipping through the strait, through which a fifth of global oil and gas flowed before the war, have forced Middle Eastern nations to cut oil output sharply. The world has lost more than 2.6 billion barrels of oil since the Iran war began in February.
Shipping traffic at the key Gulf waterways of Bab el-Mandeb and the Strait of Hormuz remained unchanged at the start of the week.
The American Petroleum Institute (API) estimated that crude oil inventories in the US rose by 2.69 million barrels in the week ending July 30. Commercial crude oil inventories excluding the SPR have lost just over 58 million barrels over the last sixteen weeks, with US crude inventories down just 7.2 million for the year, according to API data.
Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
