Nigerian Crypto Use Continues To Grow In Q4 Of 2023

Ibrahim Lawal
Jan, Mon, 2024

General News , Generative AI

Nigerian Crypto Use Continues to Grow in Q4 of 2023

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Nigerians have been increasingly using cryptocurrency in recent years. As reported by Punch, one of the main reasons for rapid crypto adoption growth within the country is due to peer-to-peer transactions, which streamlines the transfer of assets without needing a middleman. This has also increased the appeal of crypto for Nigerian residents, with crypto use increasing up to 21% in the past year and 27% of locals owning crypto by 2022.

However, it is important to note that the significant rise in the use of crypto is also spurred by different factors that have led to continuous growth into Q4 of 2023. Read on to learn more about Nigerian crypto use and what the country’s relationship with digital currencies may look like moving forward.

Nigeria’s relationship with crypto

Cryptocurrency became popular in Nigeria for a number of reasons. Despite being Africa’s biggest economy, the country has seen consistent inflation that peaked at 26.72%, and people are struggling to keep up. These economic and social challenges in the country prompted some people to turn towards crypto investments, which offer more inclusive opportunities to thrive financially.

In fact, an article from ZAWYA shows that a lack of access to more traditional forms of finance thus encouraged a number of Nigerians to use less conventional transaction options. For most locals, it is easier to access cryptocurrencies and start trading rather than going to the bank to open a fiat account. One only needs access to the internet to invest or trade in crypto as a hedge against inflation and to create promising gains that can sustain their needs and lifestyle.

Increased access to reliable trading tools is also a significant factor behind the country’s thriving crypto market, as Nigerians can rely on these to successfully execute their transactions. Take MetaTrader 4 (MT4), a popular tool available on most trading platforms. Its automatic trading features make it easier to track analytical operations on the financial markets and maximise opportunities. Meanwhile, sites like CoinmarketCap are great resources for those who need to know the real-time values of various cryptocurrencies. Since tools like these are easily accessible via smartphone, Nigerians can more effectively navigate the crypto market—and that may be encouraging more widespread crypto use.

Even the national government now recognises that crypto has vast potential as a financial asset. The Securities and Exchange Commission (SEC) introduced a taxation on crypto use in 2022, effectively treating it like any other security available that residents can trade or invest in. This recognition has only bolstered crypto use in the country, with Nigeria’s crypto market growing in 2023. It’s now the largest cryptocurrency economy within Sub-Saharan Africa.

Future of Nigeria’s crypto use

In addition to crypto, the relationship between Nigeria and other digital currencies continues to flourish. Our previous post discussing the use of eNaira mentions that the government is continuously working to promote greater financial inclusion across the board and help make digital currencies evolve amid economic challenges and fluctuations. Additionally, the government also hopes that the use of digital currencies and assets can help residents improve their financial literacy, which can also enhance the nature of trading within Nigeria.

Furthermore, the presence of crypto startups like Coinzaner helps empower individuals and businesses by giving them cost-effective access to crypto and blockchain technology. In line with this, reports from blockchain firm EMURGO Africa are predicting that Kenya, South Africa and Nigeria are leading the adoption of blockchain and Web 3.0 technologies that can bolster investment opportunities in digital currencies within the country and other parts of Africa.

The promising growth of crypto in Nigeria is also prompting foreign companies like WhiteBIT to expand operations by establishing reliable blockchain technology platforms that can further revolutionise the crypto landscape in the country. With this, one can expect interesting crypto developments in Nigeria for the rest of 2023 and into 2024.

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