Nigeria loses more than $593.6 million amid the ongoing undersea cable repair. According to data from NetBlocks using its Cost of Shutdown Tool (COST), Nigeria incurred a loss of ₦273 billion ($593.6 million) over a span of four days.
Nigeria Loses More Than $593.6 Million
According to estimates by Top10VPN, the recent Internet outages in West & Central Africa, including Nigeria, resulted in a staggering cost of $112.5 million up to midday on Friday. This calculation is based on an average loss of Internet connectivity for thirty-one hours.
Using data from NetBlocks’ Cost of Shutdown Tool (COST), the economic impact of the Internet disruptions from Thursday, March 14, to Sunday, March 17, 2024, is estimated to be over ₦273.98 billion ($593.6 million) based on the exchange rate as of May 2023. NetBlocks relies on indicators from organizations like the World Bank and the International Telecommunication Union (ITU) to estimate the economic effects of such disruptions.
The Disruptions Affected Several African Countries
The disruptions, caused by damage to undersea cables, affected several African countries, leading to varying degrees of connectivity issues for mobile network operators, Internet service providers, and even some banks. Customers faced challenges in carrying out transactions via bank apps and USSD codes.
How the Nigerian Communications Commission (NCC) Responded To the Situation
Responding to the situation, the Nigerian Communications Commission (NCC) confirmed the commencement of repair works on major undersea cables along the West African Coast on March 16, 2024. Meanwhile, telecom companies and financial institutions redirected their traffic to alternative service providers, with some confirming service restoration while others are still in the migration process, causing delays and congestion.
How Other African Countries Are Responding To the Situation
Similarly, Ghana has disclosed that the repairs on subsea cables may take up to five weeks. This decision follows a meeting with subsea cable landing service providers and mobile network operators.
The Economic Impact of Internet Shutdowns
The economic impact of Internet shutdowns is significant, as highlighted by Top10vpn’s report in January 2024, which revealed that global Internet shutdowns cost the economy more than $9 billion in 2023. Sub-Saharan Africa ranked second after Europe, with losses totaling $1.74 billion affecting 84.8 million Internet users over 30,785 hours.
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