Meta’s exit threat puts Nigerian SMEs at risk

Meta Platforms’ warning to suspend Facebook and Instagram operations in Nigeria over an unresolved $290 million fine has sparked concern across the country’s digital and small business landscape.

Industry experts say the potential exit could severely disrupt Nigeria’s 39.6 million micro, small, and medium enterprises (MSMEs), with around 56% of them relying on Meta’s platforms for sales, marketing, and customer engagement.

The fine—levied by three Nigerian regulatory bodies for multiple infractions—has been upheld by local courts, with a payment deadline set for June 2025. Meta’s failure to secure a legal reversal prompted its threat to withdraw from the market.

Analysts highlight that this isn’t Meta’s first regulatory conflict. The tech giant has faced numerous global penalties, including a €1.2 billion fine in the EU under GDPR in 2023 and another €200 million in 2025 for breaching the Digital Markets Act. In Nigeria, regulators have called Meta’s threat a “pressure tactic,” stressing that the company complied with even larger fines elsewhere.

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The economic implications are significant. MSMEs contribute nearly 50% of Nigeria’s GDP and make up over 96% of registered businesses. Experts warn that a Meta pullout would force businesses to seek alternative platforms like X (formerly Twitter) or TikTok—changes that could be both costly and disruptive.

Digital professionals, including marketers and influencers, are also at risk. Meta platforms currently dominate Nigeria’s $148.2 million social media advertising market, with Facebook alone expected to pull in $120 million in ad revenue by 2025.

Entrepreneurs like Lagos-based baker Fatima Tunde say their businesses depend entirely on Instagram, with potential platform shutdowns threatening their livelihoods.

Despite its current legal clash, Meta is regarded as one of the most tax-compliant foreign digital firms in Nigeria, contributing to the N3.85 trillion in taxes paid by companies like Google and Netflix in the first nine months of 2024.

Industry stakeholders, including Abiola Jimoh of XchangeBox and Temitope Ogundipe of Techsocietal, have criticized both Meta’s response and regulatory pressure, noting that the fallout could harm millions of everyday users and undermine Nigeria’s digital economy aspirations.