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.

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.

What do you mean by not completely ban, ban is ban can you transact legaly using your bank or bank card?. when a Government of the country  stopped crypto transactions then whom else will do so for you to call it a ban, anything your doing right now is illegal and back door business in the country, secondly there has been clamp down on accounts and fines placed on banks recently involved in helping out people to carry out crypto transaction. Go do more research on Access bank , UBA , Zenith etc recent fine if you're not current.

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[Franctoshi]

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.

Who is Central of Bank of Nigeria? and what is the difference between central Bank and the Government of Nigeria ? By you having to respond this way. It will be interesting to know if you can give detailed differences between the two.
Your point is mainly based on the fact you can have access to p2p trading platform and the Government does not have control over it. Aside that you should known the full effect and therefore believed it was a Ban.

[Franctoshi]

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?

You guys must have forgotten the situation on ground then was to stop money laundering and how unstable the Naira was before the ban ,so there was Increasingly high Demand for crypto transaction and less for Naira , So most investors in the country saw what was about to happen and hedge their funds by moving their money into digital asset as crypto were seeing a significant increase in price.

[_act_]

What do you mean by not completely ban, ban is ban can you transact legaly using your bank or bank card?. when a Government of the country  stopped crypto transactions then whom else will do so for you to call it a ban, anything your doing right now is illegal and back door business in the country, secondly there has been clamp down on accounts and fines placed on banks recently involved in helping out people to carry out crypto transaction. Go do more research on Access bank , UBA , Zenith etc recent fine if you're not current.

Banks should be stayed out of this, that is the reason CBN fineed those banks, CBN banned crypto transactions in Nigeria. But p2p, the CBN has no power, Nigerians can transact from one person to another without the bank knowing. There are centralized exchanges that Nigerians are using, they should have been restricted if truly there was total ban on cryptocurrencies in Nigeria.

Who is Central of Bank of Nigeria? and what is the difference between central Bank and the Government of Nigeria ? By you having to respond this way. It will be interesting to know if you can give detailed differences between the two.
Your point is mainly based on the fact you can have access to p2p trading platform and the Government does not have control over it. Aside that you should known the full effect and therefore believed it was a Ban.

The CBN is the central bank of Nigeria, the governments are the president, senators and the judiciary. Government have control over centralized p2p trading, but the government do not yet interfere with crypto trading in Nigeria, only CBN banned cryptocurrencies. Only what could be hard and would be hard for the government is decentralized means of trading, government can restrict Nigerians not to trade on centralized exchanges but yet left Nigerians to trade cryptocurrencies.

[fiulpro]

It's not just about more job opportunities but you have to understand that something like Bitcoins, connects the whole world's economy with each other, making it better for the people to engage in world's economy and find international jobs which they otherwise cannot do  under normal circumstances since the less developed countries do not have such an integrated system.

Banks are more or see like the middle road, when you are trading, you need them undoubtedly therefore the government should not only provide better rules and regulations but they should also understand that banning won't do a thing since people can also use it without letting them know about that.

They are just going years back now because of banning cryptocurrencies which is getting more and more important in today's world.

[TheGreatPython]

Banks should be stayed out of this, that is the reason CBN fineed those banks, CBN banned crypto transactions in Nigeria. But p2p, the CBN has no power, Nigerians can transact from one person to another without the bank knowing. There are centralized exchanges that Nigerians are using, they should have been restricted if truly there was total ban on cryptocurrencies in Nigeria.

I think it all started during the #ENDSARS protest that took place in Nigeria in 2020. The government were trying to stop people who were funding the protest and a lot of them utilized the use of cryptocurrency to fund the then ongoing protest. And that was why the Central Bank of Nigeria decided to ban cryptocurrency by stopping banks from dealing with centralized crypto exchanges and blocking suspected accounts that traded crypto.

I don't know how far they have gone with it now. But, in the case of decentralized trading or peer-to-peer, we all know for sure that there will be no way for the government to stop the people from doing that, even if they want to.

[barbara44]

Even before the Nigerian government decided to ban cryptocurrency, their economy was already depreciating. If they really want their economy to get better I believe that they have much work to do and I don’t really think it’s something that has to do with cryptocurrency.

But, I do agree with you that cryptocurrency would have provided more jobs because there were already some cryptocurrency exchanges that we are opening their offices in Nigeria such as binance.com. By doing so that would have provided a lot of job opportunities. And also the youths can as well rely on cryptocurrency trading to make income. But cryptocurrency shouldn’t be your only source of income, you should also have something else doing, because this is an unstable business.

[Markinzo]

A country whose economy isn't managed by the best brains a degradation of the economy and living conditions is inevitable. As for the ban on cryptocurrency affecting the value of a country's currency is what I can't envinced, cause the value of the currency is not dependant on Bitcoin or cryptocurrency.

Although it may be true, the ban must have in a lot of ways affected many youths that had taken solace in the cryptocurrency space for a stream of income. 

[Agbe]

The elites in the third world nations hate their citizens that are trying to do well in the society, that is why there is no employment to the youths. Nigerian Universities graduate thousands of graduates every year but these graduated youths are just keep or left on the street to survive, yet if these youths are doing well from the street, the government will send EFCC , police and SARS to go after the person. Nigerian Government is not for the Citizens but for the elites only.

Talking of Nigerian Economy. It's even laughable, I am not criticizing the country but that is the fact and true. In any country, if the following are found higher than the normal life style of the citizens, that state or Country is a fail Country.
1. Inflation
2. Unemployment
3. Squarlor
4. No electricity
5. No pipe born water.
6. No free government hospital

All these things are found in the Nigerian State. And we call them macroeconomics deficiencies

[verita1]

Bitcoin and cryptocurrencies came to Nigerians as a lifeline, which is why they will not get rid of them for more prohibitions made by the government.

On the other hand, the Nigerian government attempts to introduce the eNaira to serve its population without a bank and provide them with tools to boost the economy. As long as corruption levels do not decrease, economic growth is unlikely. In addition to stopping the violence in the creation of plans to make the nation safer.

The prestigious firm PricewaterhouseCoopers (PwC) did a study and revealed the following:

Akpata stated that “the results of the study show that corruption in Nigeria could cost up to 37% of Gross Domestic Products (GDP) by 2030 if it’s not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030. The boost in average income that we estimate, given the current per capita income, can significantly improve the lives of many in Nigeria”.

https://www.pwc.com/ng/en/press-room/impact-of-corruption-on-nigeria-s-economy.html

[STT]

Reminds me of Zimbabwe when they had inflation they banned the stockmarket for being the cause of it.  The logic was that the share prices rising so much and 'creating' money was the main engine of inflation.   Of course halted trading of stock prices did not alter anything, those companies just had no official price but still people will keep their own book value and possibly even exchange shares anyway so whats the use in banning the public knowledge of a price or the price discovery mechanism of a free market.   
   Nigeria is large enough to be part of OPEC, they should be benefitting from the high oil price.  Thats the easiest way for them to fix their losses, increase efficiency of trade done in their main resource not ban any freedom elsewhere.

[magneto]

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.

Definitely no reason to be banning crypto.

It's not going to stop the depreciation of a faltering fiat currency, that's for sure. And I'm not exactly sure how they plan on enforcing these rules on P2P transactions which are obviously going to occur in spite of regulations.

Perhaps if they positioned themselves a bit more positively towards crypto it'll actually help with their efforts of economic recovery. Have some incentives for quality talent and crypto companies to come to Nigeria - that's the model that Malta/Singapore etc. followed to perfection.