03 April 2024

The Nigerian economy has suffered a major setback due to recent network disruptions experienced by MTN and Airtel.

The disruption in mid-March has raised concerns about its impact on the country’s stability. The network disruption was caused by damage to undersea cables, which occurred along the western coast of Africa. The affected cables are WACS, MainOne, SAT3 and ACE.

Both internet and mobile communication services were affected, leading to significant connectivity issues and disruptions in business operations.

The Nigerian economy has been particularly hard hit by the disruption. Reliable network services are crucial for online transactions, and the disruption has led to a decline in sales for online retailers, with customers facing difficulties in accessing e-commerce platforms.

Temidayo Adefioye, CEO, Switchcon said that the disruption has dealt a severe blow to the Nigerian economy. The e-commerce sector has been a major contributor to employment and revenue generation, and this disruption will result in substantial financial losses, hinder market growth, and dampen investor confidence.

“The network disruption has, to a large extent, affected the financial sector, hindering online banking services and mobile payment platforms. Also, access to banking services has been impeded, leading to delayed transactions, limited access to funds, and difficulties in conducting business operations. This has affected individuals as well as corporate entities, including payment processors and financial institutions, with implications for financial inclusion and the efficiency of payment systems,” said Adefioye.