Cryptocurrencies can fuel Nigeria’s economic growth

As the largest economy in Africa, one would think that Nigeria should thrive from an economic perspective. Sadly, things are moving in the opposite direction.

The unemployment rate is high and expected to rise higher soon. Having no income, the youth is turning toward questionable ways to earn cash, including playing in online casinos and betting on sports.

It worsens the economic problem and unemployment rate, which, together with the coronavirus pandemic, could destroy the lives of millions in Nigeria.

All of that could be avoided if regulators open the door for cryptocurrencies. Experts say that cryptos are a viable solution to Nigeria’s economy problem that will fuel an economic growth and keep young Nigerians at home.

Survival of the Fittest

Young people around the world invest in graduating from college so they can later find the job of their dreams. If it’s not available in their hometown, they move to find it. That’s a luxury the Nigerian youth doesn’t have. Young Nigerians stay unemployed for over 5 years after graduation, seeking different ways to earn some cash.

The Nigerian job market doesn’t have a lot of vacancies. Unemployed young Nigerians with no work experience at all don’t have the skills to create their own jobs. They all end up competing over a few vacant spots, driving the unemployment rate higher and higher.

Data from the National Bureau of Statistics says that Nigeria’s unemployment rate is 27.1%. Nearly 22 million Nigerians are unemployed at the moment. It’s a truly unimpressive economic data that the government isn’t able to solve at the moment. However, if regulators and stakeholders open up to cryptos, the rate would drop soon.

One glaring problem along with the high unemployment rate is that many young Nigerians don’t have a bank account to generate income. They use payment methods that don’t ask for a bank account to claim winnings obtained at gambling sites and other activities. This could all be avoided if the African country adopted crypto, which would not only solve a slew of financial problems – it will also strengthen the economy in a short time.

Great Interest in Crypto
The good news is that the digital economy in Nigeria is on the rise. According to a McKinsey report, Nigeria’s fintech companies have raised over $600 million in five years. Called “Harnessing Nigeria’s Fintech Potential”, the report praised the Nigerian youth interest in digital currencies. It obviously shows that Nigerian regulators need to change the laws and regulations on cryptocurrencies as they offer untapped potential that could solve a lot of economic problems in the country.

Cryptocurrencies such as Bitcoin could be the economic fuel Nigerian needs. If and when fully adopted, cryptocurrencies will surely increase the financial inclusion of individuals and companies. The low transaction fees and an no need for bank accounts and intermediaries will benefit remittance payments and boost international trade and peer-to-peer transactions.

In short, the adoption of cryptocurrencies and blockchain will give young Nigerian jobs – it’s that simple. The crypto industry will curb the high unemployment rates, with experts encouraging young Nigerians to explore a career path in the crypto and blockchain space.

The post-pandemic period has been pounding down on Nigeria’s fragile economy, leaving millions of people without jobs. That could all be erased if the interest in digital currencies such as Bitcoin grows. While it may not immediately solve all of Nigeria’s financial troubles, it will certainly be a step in the right direction. In years, Nigeria’s economy may thrive thanks to the adoption of cryptocurrencies.

Conclusion

Cryptos won’t make a considerable impact on Nigeria’s economy on their own. The country must start building appropriate blockchain infrastructure and point the youth in the right direction so that cryptos could be adopted in the first place.

This would require a change in laws and investing in technology that will help cryptos thrive. Improvement of financial inclusion is the largest benefit of adopting cryptos in Nigeria. It will give millions of young Nigerians a chance to earn income, without the need to involve a bank.

With the government still against cryptos, unemployment rates will continue to climb up. Young Nigerians are competing for a few job vacancies as the industry doesn’t have the capacity to open up new spots. All of that could go away with the inclusion of cryptos if the government shifts its stance on them.