A recent report from ConsenSys has revealed that an astonishing 99% of Nigerians are aware of cryptocurrencies. With a population of over 200 million, this development indicates an outstanding precedent for the region in terms of digital and financial literacy. The findings, which compiled the opinions of over 3,000 citizens, suggests that Nigerians may be among the most well-informed nations on this new form of digital currency.
1. Nigerian Population Skyrockets in Crypto Awareness
Nigerians Buying Cryptocurrency
Recent awareness of the digital money revolution has caught the attention of the Nigerian people. Bitcoin trading, in particular, has gained the attention and jumped in popularity from a few hundred traders in 2017 to nearly 2000 in 2019. According to reports, Nigerians are buying and trading Bitcoin more than any other African countries.
The cryptocurrency trade in Nigeria is increasing rapidly due to its potential to become an effective hedge against inflation. Local buyers are primarily attracted to the “invest to get rich quick” appeal of cryptocurrency. They are also increasing their investments to benefit from the rise in prices and the massive dividends that can be earned.
The number of Nigerians actively trading in different cryptocurrencies is growing significantly. It is estimated that there are close to half a million Nigerian active crypto-users. Moreover, trading platforms and online crypto exchanges are making it easier to get in and out of digital coins.
- Nigerians are buying and trading Bitcoin more than other African countries
- The cryptocurrency has an appeal of “invest to get rich quick”
- Close to half a million Nigerians are actively trading in different cryptocurrencies
2. Unprecedented Results Revealed in ConsenSys Report
ConsenSys recently released their report for the first quarter of the year revealing unprecedented insights on decentralized applications in the Ethereum ecosystem. After months of researching and analyzing key data, the report showed a fundamental shift in usage of the Ethereum network.
There was a massive uptake in the total number of unique user accounts interacting with Ethereum DApps. Users increased by 77% year-on-year, with the total DApp user count reaching an estimated 11.5 million. This remarkable growth shows how much decentralised applications have evolved over the last 12 months—and signals a new era for Ethereum developers.
Further key takeaways from the report included:
- DApp users transacting on Ethereum are typically more active. This was seen in four main categories: gaming, exchanges, DeFi, and synthetic assets.
- The number of deployed smart contracts has increased by 244% year-on-year. This suggests the vast majority of Ethereum transactions now involve smart contracts.
- Ether transactions are still underpriced, based on their low gas prices and low usage of Layer 2 solutions.
ConsenSys’ report shows how Ethereum decentralized applications are becoming a force to be reckoned with. Promising numbers have been earned thanks to Ethereum developers’ tireless work and dedication to making efficient, user-friendly applications.
3. Examining the Factors Behind Crypto Adoption in Nigeria
In recent decades, Nigeria has become one of the leading countries in Africa when it comes to cryptocurrency adoption. With an ever increasing number of investors, exchanges, trading platforms and payment facilitators operating within the country’s borders, Nigeria is a hub for cryptocurrency activity. To understand the reasons behind this deep penetration of crypto within the Nigerian economy, it’s crucial to examine some of the key factors at play.
Remittance Services: One of the main factors driving the success of cryptocurrency in Nigeria is its utility as a remittance service. A growing number of Nigerians are utilizing various blockchain platforms to transfer money to their relatives all around the world. This is especially attractive to those who are unable to access traditional banking services and is seen as a cost-effective way for Nigerians to send money abroad with low processing fees and foreign exchange rates.
Young Tech Savvy Population: In Nigeria, there is a large, tech savvy population that is eager to experiment with new technologies. With the rise of the internet in Nigeria, younger generations have continued to explore new ways to use it for financial gain which have included the adoption of digital currencies. Furthermore, many Nigerians have employed cryptocurrencies as a form of investment, speculating on the potential profit of long-term crypto holdings.
Availability of Education: Finally, there has been an increasing availability of education relating to the use of cryptocurrencies in Nigeria. With the aim of educating the population and creating a more secure crypto environment, various educational initiatives have been put forward, increasing people’s confidence in the technology and how to use it safely.
As cryptocurrency becomes more popular in Nigeria, it’s vital to understand the factors behind its increase in utility and uptake. While remittance services are essential to many, the increased availability of education and a young tech savvy population eager to explore new technologies are also playing a role. All of these factors have coalesced to drive the success of crypto in Nigeria.
4. Implications of Crypto Awareness on Financial Inclusion in Nigeria
Cryptocurrency Awareness is Growing amongst Nigerians
Cryptocurrency awareness is growing slowly in Nigeria, mainly fuelled by its potential to provide an alternative financial system for households and SMEs. By 2019, more than 40 million people were reported to understand the basics of cryptocurrency and blockchain technology in Nigeria. The Nigerian Blockchain Consortium – established in 2018 – has been leading this promotion, working in partnership with fintech companies and banks to increase education and awareness of cryptocurrency.
Opportunities for Financial Inclusion
Cryptocurrencies promise financial inclusion to people who may not have access to traditional banking services, such as those living in remote rural areas or facing financial exclusion for other reasons. Cryptocurrency allows these people to make easy and inexpensive monetary transactions which could help them to fight poverty. This could also help communities that have a lack of access to financial services, or people who are unbanked – i.e. those who do not have access to traditional banking services.
Role of Financial Literacy
Financial literacy is fundamental to achieving the full potential of financial inclusion in the country. Increased awareness of the potential of cryptocurrency should be met with an educational drive to lift financial independence.
Educational campaigns, such as those sponsored by the Nigerian Blockchain Consortium, aim to promote digital literacy and financial education amongst those unfamiliar with the technology. Such campaigns are essential to ensuring that those hoping to benefit from advances in financial technology are both equipped to understand the developing landscape and aware of the risks associated with cryptocurrency.
As the demand for blockchain-related services grows across the nation, the Nigerian public appears to be more receptive towards cryptocurrency and the potential benefits associated with it, particularly in regards to the prevalent financial banking and infastructure. Given the current market conditions, the numbers show that Nigeria is primed to adopt crypto-related solutions at an accelerated rate — a testament to and proof that the Nigerian blockchain industry is maturing and is ready to tackle bigger challenges.