Crypto adoption in Nigeria is growing at an exponential rate. The country currently has over 50% monthly active adult crypto traders as many citizens now prefer to store their money in digital currencies rather than fiat due to the constant devaluation of the Naira.
Despite the Nigerian government’s 2021 ban on cryptocurrencies, many Nigerians continue to trade cryptocurrencies. Recent data by Merchant Machines has predicted that by 2030, Nigeria will be at the forefront of global crypto adoption.
Experts have revealed that if crypto usage in the country continues to grow exponentially, the entire population of Nigeria may be using digital assets by 2030. Nigeria is reported to currently lead the group of countries with the highest interest in crypto despite of the bear market experienced in 2022.
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However, Nigeria failed to make it to the list of top 10 countries currently using cryptocurrencies, despite the prediction of having full adoption by 2030. However, the prediction predicting Nigeria’s global cryptocurrency takeover is derived from its current position as the largest cryptocurrency market in Africa. , and also several other challenging economic factors, such as the continued devaluation of its local currency, rising inflation, and worsening economic conditions.
The list of crypto predictions for 2030 places Nigeria at the top (100%), followed by the Philippines (86%), Thailand (64%), Malaysia (61%), and India (50%).
Let’s look at some factors that are affecting the adoption of cryptocurrencies in Nigeria.
Some Factors Affecting Crypto Adoption In Nigeria
1.) Financial Coverage/ Freedom
There is no denying the fact that Nigeria is ravaged by a high poverty rate, where the world bank has predicted that the number of poor people in the country will reach 95 million by 2022. The country’s currency, the Naira, has been experiencing hyperinflation lately, making the cost of living high for ordinary citizens. However, cryptocurrencies have continued to serve as a better hedge of financial value, causing a large percentage of Nigerians to turn to digital currencies to preserve their savings.
2.) Creation of job opportunities
The unemployment rate in Nigeria is high, estimated to hit 33 percent this year. However, the crypto industry has opened up a whole new world of job opportunities for Nigerians, which is one of the reasons for its widespread adoption in the country. In 2020, the number of jobs in the crypto industry more than doubled the previous number. Many Nigerians have taken advantage of job opportunities in the cryptocurrency industry, and many of them are full-time cryptocurrency traders doing exceptionally well. A few others have also delved into crypto writing, crypto analysts, NFT marketing, and the like.
3.) Remittance payments
This refers to money sent by diasporas to their families, which has served as a financial lifeline for most households in Nigeria. Transfers in the African region have been reported to make up a larger part of its cryptocurrency market than any other region. In 2019, Sub-Saharan Africa received around $48 billion in estimated remittances, as a large volume of these payments came from Europe.
The unfavorable monetary policies in Nigeria no doubt affected the confidence of Nigerians to send money home to their loved ones, leading to the change in the use of crypto. Furthermore, the devaluation of the currency was reported to have made it difficult for the income of many Nigerians to maintain its value, which has continued to fuel the attraction for crypto remittances.
Conclution
As the Naira continues to devalue, more and more Nigerians continue to trade and store digital currencies. The average Nigerian has taken an interest in cryptocurrencies, aside from the fact that it serves as a financial hedge, the industry has plenty of opportunities to offer.
Cryptocurrency has continued to affect the lives of so many Nigerians in different ways such as creating job opportunities, trading cryptocurrency and granting financial freedom and many more which has continued to drive its widespread adoption.
