The Digital Chamber, a blockchain industry advocacy group, expressed concerns about excessive fines levied against multinational companies operating in Nigeria. The group indicated that such actions could negatively impact international participation in Nigeria's business community. The statement was shared with Federal Newswire on August 15.
"We certainly do — it's hard to see how these two actions could be received by the international business community in a manner other than having a chilling effect on foreign direct investment and continuation of operations in for multinational firms operating there," said the Digital Chamber.
Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) fined WhatsApp $220 million earlier this year for an alleged data privacy breach, the Daily Post reported. Meta, WhatsApp's parent company, suggested it may withdraw certain services from Nigeria. The FCCPC ordered WhatsApp to disclose more details about its data collection practices and to stop sharing data with other Meta companies. A WhatsApp spokesperson stated, "We want to be clear that, technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally."
In March, the Digital Chamber issued an "urgent call to action" regarding the Nigerian government's detention of U.S. citizen Tigran Gambaryan, an employee of the crypto exchange Binance. According to a post on the organization's website, Gambaryan was "invited to Nigeria under false pretenses, only to be arrested on February 26, 2024, without any charges, except for his current employment for Binance." The Digital Chamber said the Nigerian government seemed to be detaining Gambaryan in order to "coerce" a substantial fine from his employer. "This action is a flagrant violation of international law," the Digital Chamber said.
The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) stated in June that the ongoing imprisonment of Gambaryan could damage international support for Nigeria. BICCoN emphasized that the situation calls for a "balanced approach" and urged the Nigerian government to consider the impact of Gambaryan's detention on emerging industries and other sectors. "To mitigate these risks and promote a thriving blockchain ecosystem, BICCoN urges the Nigerian government to prioritize constructive dialogue that will lead to a healthy conclusion of the matter," BICCoN said.
Gambaryan remains in Nigerian prison where his "health is deteriorating rapidly," CoinDesk reported. His family has indicated he is also being denied appropriate access to his legal team.
The Digital Chamber works with lawmakers and regulators to promote innovation and investment in the blockchain industry.
