Nigeria is currently leading crypto adoption charts in Africa according to one report from Chainalysis.
The Western African country continues to set the tone for the rest of the continent to follow as it is the largest economy of the region.
Nigeria remains influential in crypto adoption despite the central government recently going all in against digital currency exchanges, which resulted in one jailed senior Binance executive.
Nigeria, India, and Indonesia Lead the Way
The trio of Nigeria, India and Indonesia lead crypto adoption charts in their respective regions. They are collectively part of the Global South, which has become a key adopter of cryptocurrencies due to the overall challenging situation imposed on them. Inflation, remittance issues, and slowing economies continue to hurt the middle class considerably, and digital currencies offer an escape from this suffering. The USA and Vietnam were other regional leaders according to Chainalysis.
Naira Troubles
The Nigerian Naira (NGN) has been under considerable pressure for the better part of the last 5 years. Here is its graph:
As you can see, the USD has risen more than 400% against the stricken Naira, with Bitcoin to Naira, this figure even reaching up to 2600% The problem has especially been exacerbated since the middle of 2023. The Nigerian Securities and Exchange Commission (SEC) has placed blame on crypto exchanges operating in the country including Binance itself. This resulted in a major clampdown against these platforms and the targeting of major crypto traders operating in the country.
Leading the Way in Africa
Despite the recent troubles with its national currency the Naira, Nigeria remains one of the biggest economic players, not just in the Sub-Saharan region but the vast expanse of the African continent. It recently marked a shift in its policy when it allowed two indigenous exchange platforms Quidax and Busha to operate in the country.
This could represent a major boost to the local crypto scene as the market is huge with tens of millions of users. If somehow it can support local players and allow them the freedom to excel, they can become major players in the multi-billion dollar sector.
Other associated markets like Decentralized Finance (DeFi), GameFi, and dApps are also expected to grow with the crypto economy and provide jobs to tens of thousands of skilled IT professionals. This is a great opportunity for Nigeria as the South African Revenue Service (SARS) is falling back on the crypto adoption curve and looking to tax holders extensively.
Remitano: A Pioneering Exchange
One such platform that has gained significant traction in Nigeria is Remitano. This peer-to-peer exchange offers a secure and convenient way for Nigerians to buy and sell Bitcoin and other cryptocurrencies, bypassing traditional financial institutions. Remitano’s user-friendly interface and robust security measures have contributed to its popularity among both novice and experienced traders.
Nigeria’s growing crypto adoption presents a significant opportunity for economic development. The growth of the crypto economy can also create new jobs and stimulate innovation. As other African countries continue to explore crypto adoption, Nigeria’s experience can serve as a valuable model for the continent.