Nigeria Economy before and Now after cryptocurrency Ban.

[Franctoshi]

Before the ban on crypto trading in Nigeria it was as if the high volume of cryptocurrency transactions in the country was the major issue facing Naira at that moment and being the cause of its depreciation in price and so have a negative impact to the Economy. As at then the exchange rate Naira to Dollar was around #400-#500 to a $1 dollar.
Before the ban living were a bit easier then than now for most youths without jobs who engaged on crypto trading and investment.
Then the ban came and brought more suffering and hardship to the youths who was restricted from crypto transactions because to most of them, it was only source of income and they were leveraging from that opportunity due to in availability of job for already graduated and fresh graduating youths.

Taking a look at the Economy then and now there isn't much better changes done to the Economy for banning cryptocurrency transaction, rather the Economy is experiencing high inflation and the price of goods and services are skyrocketing.
Instead of the Naira to even gain value it has suffered further depreciation in price and as at the time of writing, the exachange rate a dollar ($1) to Naira is currently around #580-#600 black market rate compared to what it was before the ban.

SOLUTION
therefore what the Federal Government and central Bank of Nigeria should have done is find a way to regulate cryptocurrency and it activities, this would have created more Job opportunities and help bolster international remittance from profits generated from crypto investment and transaction.

In general I see no sense or positive impact on Nigeria Economy for  banning crypto transaction,  rather it worsen the state of living for the youths who found thier selves in the business.

[Z-tight]

Before the ban on crypto trading in Nigeria it was as if the high volume of cryptocurrency transactions in the country was the major issue facing Naira at that moment and being the cause of its depreciation in price and so have a negative impact to the Economy. As at then the exchange rate Naira to Dollar was around #400-#500 to a $1 dollar.

How can high volume of cryptocurrency transactions affect a country's currency, maybe you are mistaking what the actual reason for the depreciation was. Printing more money to help the covid situation which caused inflation, and bad economic decisions probably could have caused that negative impact to the economy you are referring to.

Before the ban living were a bit easier then than now for most youths without jobs who engaged on crypto trading and investment.
Then the ban came and brought more suffering and hardship to the youths who was restricted from crypto transactions because to most of them, it was only source of income and they were leveraging from that opportunity due to in availability of job for already graduated and fresh graduating youths.

From my research, crypto is not completely banned in Nigeria, banks and other financial institutions are only restricted from handling cryptocurrency transactions, so don't you think you are making more out of it, people in Nigeria can still use crypto through peer to peer method, and i know they are all doing it that way and nothing changed for them. If a crypto ban is going to have a serious effect like you are saying, then it will be a complete ban, and even if it is people will still use crypto, though illegally then.

[_act_]

Cryptocurrencies are banned in Nigeria by the Central Bank of Nigeria, the government did not ban cryptocurrencies, Nigerians are still easily buying, holding and trading cryptocurrencies. The Nigerian economy is not good right from the beginning after colonial masters left the country, before CBN banned cryptocurrencies, the economy has been falling, it is also falling after cryptocurrencies were banned by the CBN, not that the bad economy is unusual.

[Johnyz]

Cryptocurrencies are banned in Nigeria by the Central Bank of Nigeria, the government did not ban cryptocurrencies, Nigerians are still easily buying, holding and trading cryptocurrencies. The Nigerian economy is not good right from the beginning after colonial masters left the country, before CBN banned cryptocurrencies, the economy has been falling, it is also falling after cryptocurrencies were banned by the CBN, not that the bad economy is unusual.

It is still legal to own cryptocurrency in Nigeria since its not totally banned but since we are talking about their Central Bank, it affects the decision of the investors. Yes, their economy is not on a good position since then and their politicians still preventing their people to have a decent life at least and have a financial freedom with a help of cryptocurrency, if the government listen to central bank and fully banned crypto, I think they will stay left behind as many countries already sees the importance of cryptocurrency to their economy, Nigeria is still far from rising and becoming a great country, there’s still a lot of problems that needs to be address on this place.

[_act_]

It is still legal to own cryptocurrency in Nigeria since its not totally banned but since we are talking about their Central Bank, it affects the decision of the investors.

How are the investors affected? They can still buy and hold. What is affected are crypto institutions which will not be developed which can be as a result of what CBN did.

Yes, their economy is not on a good position since then and their politicians still preventing their people to have a decent life at least and have a financial freedom with a help of cryptocurrency

You can still use cryptocurrencies, then you still have the freedom. Check Nigeria economy before February 5, 2021 when crypto was banned by CBN and compare it to 2015, you will know how Nigeria economy has been bad right from 2015 when Nigeria had the highest gross domestic product. Even the economy has been bad since independence.

[dunfida]

Cryptocurrencies are banned in Nigeria by the Central Bank of Nigeria, the government did not ban cryptocurrencies, Nigerians are still easily buying, holding and trading cryptocurrencies. The Nigerian economy is not good right from the beginning after colonial masters left the country, before CBN banned cryptocurrencies, the economy has been falling, it is also falling after cryptocurrencies were banned by the CBN, not that the bad economy is unusual.

It is still legal to own cryptocurrency in Nigeria since its not totally banned but since we are talking about their Central Bank, it affects the decision of the investors. Yes, their economy is not on a good position since then and their politicians still preventing their people to have a decent life at least and have a financial freedom with a help of cryptocurrency, if the government listen to central bank and fully banned crypto, I think they will stay left behind as many countries already sees the importance of cryptocurrency to their economy, Nigeria is still far from rising and becoming a great country, there’s still a lot of problems that needs to be address on this place.

Even if its banned but doesnt mean that citizens couldnt really still engage with crypto thing but well we know that it is risky because once caught then you know the consequences but we know that this isnt something

that impossible for someone to deal with without being traced nor being watch.Its not surprising that government would really be having that aggressive stance towards crypto due to decentralization aspect.

We've seen several countries had already done such decision but what are the differences or changes? None right?

[AmoreJaz]

Cryptocurrencies are banned in Nigeria by the Central Bank of Nigeria, the government did not ban cryptocurrencies, Nigerians are still easily buying, holding and trading cryptocurrencies. The Nigerian economy is not good right from the beginning after colonial masters left the country, before CBN banned cryptocurrencies, the economy has been falling, it is also falling after cryptocurrencies were banned by the CBN, not that the bad economy is unusual.

It is still legal to own cryptocurrency in Nigeria since its not totally banned but since we are talking about their Central Bank, it affects the decision of the investors. Yes, their economy is not on a good position since then and their politicians still preventing their people to have a decent life at least and have a financial freedom with a help of cryptocurrency, if the government listen to central bank and fully banned crypto, I think they will stay left behind as many countries already sees the importance of cryptocurrency to their economy, Nigeria is still far from rising and becoming a great country, there’s still a lot of problems that needs to be address on this place.

Even if its banned but doesnt mean that citizens couldnt really still engage with crypto thing but well we know that it is risky because once caught then you know the consequences but we know that this isnt something

that impossible for someone to deal with without being traced nor being watch.Its not surprising that government would really be having that aggressive stance towards crypto due to decentralization aspect.

We've seen several countries had already done such decision but what are the differences or changes? None right?

their government should have evaluated their crypto situation first before moving to this action. they have people who are trying to earn a living via crypto, and if they will remove it, where will they get their money to buy food from. because earning few bucks from crypto matters to these people. and now, their government is hindering them to at least achieve a decent life. just hoping that they will re-consider their position very soon.

[KennyR]

their government should have evaluated their crypto situation first before moving to this action. they have people who are trying to earn a living via crypto, and if they will remove it, where will they get their money to buy food from. because earning few bucks from crypto matters to these people. and now, their government is hindering them to at least achieve a decent life. just hoping that they will re-consider their position very soon.

Every government will have clear visibility of the country's situation. Taking the same into account it needs to make changes to the system. There is a huge number of people who depend on cryptocurrency for their living and this will affect the people. Apart from this the government ranks on the top order in corruption. Making a solution for the same could boost its economy than making bans over the cryptocurrency usage by the common people.

[ultrloa]

Cryptocurrencies are banned in Nigeria by the Central Bank of Nigeria, the government did not ban cryptocurrencies, Nigerians are still easily buying, holding and trading cryptocurrencies. The Nigerian economy is not good right from the beginning after colonial masters left the country, before CBN banned cryptocurrencies, the economy has been falling, it is also falling after cryptocurrencies were banned by the CBN, not that the bad economy is unusual.

It is still legal to own cryptocurrency in Nigeria since its not totally banned but since we are talking about their Central Bank, it affects the decision of the investors. Yes, their economy is not on a good position since then and their politicians still preventing their people to have a decent life at least and have a financial freedom with a help of cryptocurrency, if the government listen to central bank and fully banned crypto, I think they will stay left behind as many countries already sees the importance of cryptocurrency to their economy, Nigeria is still far from rising and becoming a great country, there’s still a lot of problems that needs to be address on this place.

Even if its banned but doesnt mean that citizens couldnt really still engage with crypto thing but well we know that it is risky because once caught then you know the consequences but we know that this isnt something

that impossible for someone to deal with without being traced nor being watch.Its not surprising that government would really be having that aggressive stance towards crypto due to decentralization aspect.

We've seen several countries had already done such decision but what are the differences or changes? None right?

their government should have evaluated their crypto situation first before moving to this action. they have people who are trying to earn a living via crypto, and if they will remove it, where will they get their money to buy food from. because earning few bucks from crypto matters to these people. and now, their government is hindering them to at least achieve a decent life. just hoping that they will re-consider their position very soon.

Yes they should evaluate those situation since if they didn't act right towards those results and they let their people suffer from unemployment or things that can give them benefits then they are not putting a right person in the set of power. If there government continue to ban crypto on their circulation they should take action on next election day and vote those person who support it and who aim the welfare of their people.

We know crypto creates good in life of all people especially to those unemployed and chances for youth  to change their lives is so high so I guess this one really needed to take action especially to their government.

[jrrsparkles]

If Nigerian government really cared about their people then the living condition there isn't that much worse there even before the ban and the covid, these politicians care about filling their pockets by exploiting the natural resources and again illiterate government make the life of such people by restricting the available opportunities as well. But people have the choice of selecting the right leaders so until majority of them realize it then nothing is going to change.

[Darker45]

Regardless of the ban, I assume Bitcoin is still very much vibrant among a certain population in Nigeria. The ban didn't eradicate Bitcoin. If I am not mistaken, there are a number of users from Nigeria in this forum. And they could probably testify that despite the ban on Bitcoin in their country, they could still buy and sell Bitcoin quite easily.

So whatever happened to the fiat economy of Nigeria, it mustn't have anything to do with their policy on Bitcoin. I doubt the ban has contributed to the falling value of Naira.

[Oluwa-btc]

https://africa.businessinsider.com/local/markets/nigerias-central-bank-fines-access-bank-stanbic-ibtc-and-uba-dollar19-million-for/dtxh3kc

The link above shows that, Federal government of Nigeria are not responsible for Crypto Currency Ban but the Central Bank of Nigeria.
Yesterday a fine was imposed on three big banks for not listening to CBN about blocking accounts that are directly involved in Crypto Currencies ( United Bank of Africa) (Access Bank of Nigeria) and lasty (Stanbic IBTC Bank)

But honestly speaking, the Countries economy getting no further but rather backwards, it's simply been ruled and governed by self-centered, scavenging old dickheads who are simply old school.
But that hasn't stopped Nigerians from holding and buying Bitcoin and other Crypto Currencies, over my ends at a certain time, if you're cut having a trust wallet of Bitcoin wallet, you'll be held by the police, but gradually all of that are no longer done.

With the general elections coming up next year, I'll advise Nigerians to vote for a president that will infuse Crypto Currencies in the system.

[avikz]

SOLUTION
therefore what the Federal Government and central Bank of Nigeria should have done is find a way to regulate cryptocurrency and it activities, this would have created more Job opportunities and help bolster international remittance from profits generated from crypto investment and transaction.

In general I see no sense or positive impact on Nigeria Economy for  banning crypto transaction,  rather it worsen the state of living for the youths who found thier selves in the business.

That is very much true! Many countries in Africa is facing unemployment crisis. So banning an entire ecosystem means, even less jobs for the technically sound youths of the country. Cryptocurrency could have opened doors to hundreds of jobs in Nigeria for the educated mass which they are currently missing out. But it seems the case for every corrupt government. They just don't want people to have money otherwise, they will start raising their voice for other infrastructures. If the government can keep the people busy for their basic needs like Food and housing, they will be suppressed and busy on those things only. That's the basic of any corrupt government and that's how they rule for years after years. They are just afraid of the shifting of power from their own hand to the commoners. 

[Flexystar]

Possible that most of the crypto that is being bought in the Nigerian universe was being transferred to the off shore accounts. These days it’s way easy to trade with your broker and what could be best place than than off shore brokers who can make you money like hell if done right.

But above all I’m not sure if that is the main reason. Rest it could be people of Nigeria just finding way to grow their devalued niara using the crypto currency and have their daily needs completed.

[_act_]

Even if its banned but doesnt mean that citizens couldnt really still engage with crypto thing but well we know that it is risky because once caught then you know the consequences but we know that this isnt something

CBN can not do anything so far it is p2p, not mentioning the purpose of a transaction as cryptocurrency in bank transactions, then no problem. After the ban, crypto p2p adoption increased. Nigerians are trading cryptocurrencies very well.

Regardless of the ban, I assume Bitcoin is still very much vibrant among a certain population in Nigeria. The ban didn't eradicate Bitcoin. If I am not mistaken, there are a number of users from Nigeria in this forum. And they could probably testify that despite the ban on Bitcoin in their country, they could still buy and sell Bitcoin quite easily.

Nigerians are even able to use centralized exchanges, the centralized exchanges are not restricted from Nigeria. Nigerians are buying and selling cryptocurrencies.

So whatever happened to the fiat economy of Nigeria, it mustn't have anything to do with their policy on Bitcoin. I doubt the ban has contributed to the falling value of Naira.

Like I have said before. Before the ban, was inflation. After the ban, the inflation continue. The ban is not the case of the inflation.

[Tony116]

SOLUTION
therefore what the Federal Government and central Bank of Nigeria should have done is find a way to regulate cryptocurrency and it activities, this would have created more Job opportunities and help bolster international remittance from profits generated from crypto investment and transaction.

In general I see no sense or positive impact on Nigeria Economy for  banning crypto transaction,  rather it worsen the state of living for the youths who found thier selves in the business.

I haven't seen a country where banning bitcoin and cryptocurrencies will boost their economy. They are just trying to justify their lies, as they cannot control bitcoin and fear their power will wane. But a complete ban on bitcoin and crypto is not possible, which can make it difficult for miners but investors can still trade using peer-to-peer.

Instead of banning crypto, I hope they will soon reconsider taxing it, instead of banning it outright. This will benefit both the government and investors.

[Gozie51]

SOLUTION
therefore what the Federal Government and central Bank of Nigeria should have done is find a way to regulate cryptocurrency and it activities, this would have created more Job opportunities and help bolster international remittance from profits generated from crypto investment and transaction.

In general I see no sense or positive impact on Nigeria Economy for  banning crypto transaction,  rather it worsen the state of living for the youths who found thier selves in the business.

Take away cryptocurrency related issue from Nigerian economy because it doesn't relate to it or causing any fall of the local currency just like any other countries, cryptocurrency doesn't lead to the fall of the currency. Nigerian problem in economy is very clear, Nigeria is highly an importing country. Nigeria hardly produce anything even as little as rubber by products from crude oil. They only depend on the importation of finished product of their exported raw materials and they rebuy at high price, so how will such improve the economy and strengthen the naira?

Example of Russia trying to recover the strength of their currency, ruble, and have made policy to receive payment in ruble, this is being focused and determine but these qualities are lacking in Nigerian leadership.

Just replace cheap price of oil and gas and see how transportation fees will reduce and that will instantly drop inflation rate and exchange rate also.

[Pejoh Asu]

Nigeria is the most populous country in africa, i didn't expect nigeria to be banned cryptocurrencies, but the positive news i heard is the growth of cryptocurrencies is fantastic in africa, reports from economic sites stated that crypto growth in 2022 reached more than 2500% and i'm sure the impact of nigeria being banned crypto will not have a big impact.

[CryptopreneurBrainboss]

In general I see no sense or positive impact on Nigeria Economy for  banning crypto transaction,  rather it worsen the state of living for the youths who found thier selves in the business.

The system of the Nigeria government has always been to suppress the citizens that they become their mini gods and worship (do) what ever they comma. They do this to the citizens so when the next election comes they can buy their votes easily as a result of the citizens not been financially capable of handling their everyday needs. The merge of Bitcoin (most especially trading of the currency against other fiats or crypto), has given the citizens of the country (especially youths) a livelihood. People can now take care of themselves from their profits without having to rely on the governments (Job) which resulted to them speaking out constantly on social media and through organized protest.

The government are seeing all this unfolds and knows they are losing their power and are threatened. All this bans from the twitter ban to crypto are all targeted at the youths to silent them. Nigeria politicians are very smart, the government didn't come out themselves to ban trading of cryptocurrency both used the CBN. All this government bodies are controlled by the president as they all report/take instructions from him. The economy could have benefited from the trading of cryptocurrency in regards to taxes and job creations but the politicians don't want the citizens to be financially stable., They want total control and best way to do that is by controlling the finances.

[Hydrogen]

SOLUTION
therefore what the Federal Government and central Bank of Nigeria should have done is find a way to regulate cryptocurrency and it activities

A ban on crypto trading is a form of regulation.

I think what you mean is, regulators might have tried for a more even and fair type of regulation. As opposed to adversarial and heavy handed banning. If I remember right, nigerian regulators were surprised at the response and aftermath of the bans they themselves implemented. Perhaps what is needed are better regulators who better understand crypto markets, who can better predict outcomes.

African nations like zimbabwe are known for hyperinflation and negative economic conditions. Good leadership at the highest levels is not common there. Good leadership is becoming less common around the world as we speak. This negative trend reduces the reliability of regulation, across the board, unfortunately.