How can Nigerian Businesses Starts Accepting Bitcoin easily?

[Itz-prisigold]

Bitcoin adoption in Nigeria is already very strong at the individual level. Nigerian's are now using Bitcoin for savings, remittances, online payments, and to protect against the naira devaluation.

But when it comes to businesses, adoption in businesses still looks limited.

So, I have to ask the question; How can businesses in Nigeria start to use Bitcoin easily?

1. Is This Even Allowed?

In the last couple of years, there have been worries about regulations, especially after the Central Bank of Nigeria put some rules on the banks. Although  it is not illegal to own or accept Bitcoin. These rules only affected the banks or the people who own and run the crypto exchanges and not individuals directly. So, maybe uncertainty may truly be one of the reasons many business owners are still cautious. So I think all what people need is clarity and awareness,  that may be just as important as technology.

2.  The Technical Part is Really Easy

From a practical point of view, accepting Bitcoin is not that difficult.

A business owner can:

1. Download a Trusted Bitcoin wallet
2. Generate a receiving address
3. Put a QR code to accept payments

This can work for people who own small businesses, freelancers, or people who provide a service. The barriers are low, and technically there is a lot of room to improve. And for faster payments,  layer 2 solutions like lightning network can actually allow instant transaction with very low fees.  So technically,  the barrier is  very low.

3. Managing Volatility

Price changes are one of the biggest worries for businesses. Price in Bitcoin can be really unpredictable.

To reduce risk, a business could:

. Convert Bitcoin to naira as soon as they get the payment
. Only hold a small amount in BTC
. Use Bitcoin for cross-border transactions only

So, businesses can accept Bitcoin without having to take a lot of risks due to Bitcoin’s price changes.

4. Possible Benefits for Nigerian Businesses

When you implement it properly, Bitcoin could provide Nigerian Businesses with:

. Ability to reach international customers
. Quicker payments across borders
 . No chargebacks
. Alternative payment option during banking problems

This is particularly a big deal for online businesses.

5. What Is the Real Barrier?

The more important question may not even be if businesses could accept Bitcoin, it could be:

. Lack of awareness
. Fear about regulations
. Maybe no demand from customers
. Not knowing how to account for it

Maybe when demand is higher, and when education improves, then businesses will be more willing to accept Bitcoin.


When it comes to an individual level, Bitcoin is already part of Nigeria’s financial system.

Business level adoption could be the next step.

The tools and technologies are available. However, for now it seems that they may lack clarity and confidence.

I will like to ask:

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

When you start to run a business, will you consider adding Bitcoin as a payment option?

[Mr_Brilliant$]

I will like to ask:

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

When you start to run a business, will you consider adding Bitcoin as a payment option?

The answer to this question nor be big deal now, the biggest factor wey dey stop most Nigerian businesses from adopting Bitcoin na awareness..  Many local business owners no really understand Bitcoin, them dey always feel say na risky something.. Some of them still see am like scam self..  If they truly understand how it works, then at least the thought of adding am as payment option go come cross their mind..  But if awareness no dey, adoption no fit happen. Simple..

For the second question, yeah why not? I get the awareness already, so accepting Bitcoin no go be strange thing for me..  I no go reject something I understand nw.. But now the real question be this, how many of the buyers themselves get that same awareness? How many of them dey hold Bitcoin and are willing to actually spend it? Because no matter how ready a business owner is, if customers no dey interested in paying with Bitcoin, e go just remain option wey nobody dey use. So for me, everything still end for the awareness..

[Pablo-wood]

The answer to this question nor be big deal now, the biggest factor wey dey stop most Nigerian businesses from adopting Bitcoin na awareness..  Many local business owners no really understand Bitcoin, them dey always feel say na risky something.. Some of them still see am like scam self..  If they truly understand how it works, then at least the thought of adding am as payment option go come cross their mind..  But if awareness no dey, adoption no fit happen. Simple..

Majority of the persons wey i done interact with about accepting Bitcoin as means of payment the complain about volatility. Awareness no really be challenge for this our era. Many people dey aware of Bitcoin but has price no dey stable them go lose wetin no good. Infact their business fit go bankrupt if them over lose guard. As price dey drop the amount them suppose use restock their goods go drop and their capital go also reduce. Even me I no go advice person make e use am for business except them go just mark every payment wey them receive through Bitcoin as investment then the regular Naira go be for business expenses and restocking.

[Cryptomultiplier]

I will like to ask:

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

When you start to run a business, will you consider adding Bitcoin as a payment option?

For now, the Nigerian government see and considers Bitcoin as an asset not a currency. They can accept taxes and remittances in Bitcoin but we as citizens or individuals can spend it as a currency unless it is agreed between two persons upon completion of a transaction.
The biggest factor affecting this though is not just because we don't want to use it, but because of the volatile nature of Bitcoin.
The regulatory price tag and taxes surrounding it is also another concern and it has a high barrier to entry.

Besides this, I think I can accept Bitcoin for my business but with added cost and only if I can accurately calculate the rate in Naira against the current Bitcoin price tag. I would try to also ensure the price I offer in Bitcoin is a bit higher than the Naira equivalent, Incase the price of Bitcoin drops before completing the transaction.

[Curious T]

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

I can think of a few factors.
1. Nigerians who know what Bitcoin is don't even see it as a currency at all or an alternative means of payment. Almost every one of us only thinks about how we can get profit from Bitcoin by holding, trading or both. This is why you will see that even people who know about Bitcoin don't accept Bitcoin as a means of payment.

2. Generally, Nigerians do not like complex things. This might come out as rude or offensive, but it's the fact. Nigerians tend to stay away from anything that is a little bit complicated. We can discuss why it is so, but that is a whole different discussion.
So something like Bitcoin does not interest or fascinate them, or they just term it as a scam or a Ponzi. So it's difficult for people like this to have Bitcoin as an option for payment in their business.
Even the big supermarkets and retailers don't accept Bitcoin. At best, they accept crypto gift cards.

3. Nigerians are not a rebellious people. They may be lawless, but not rebellious. They hardly stand up to authority. So how can people like this look for alternative means of payment when the naira is available?
Nigeria should be one of the countries where the citizens have adopted Bitcoin most as a means of payment because currently, we have one of the worst currencies in the world, but that is not the case.
We've been indoctrinated as kids to always respect authority, be it at home (parents/guardians, and elders), at school (teachers), in church/mosque (pastors/Imams), and this behaviour is carried on to the leaders.
This has made us not rebellious in nature as a people, so we always stick to the normal or what we are given by those above us.

Note: When I say "Nigerians", I'm not talking about a couple of people; I'm talking about a whole, like in general. Of course, not everybody in a country will be the same way, but when we talk in general or as a collective, we can generalise. Because I know I will get the usual "don't generalise" speech from this.

[Itz-prisigold]

The answer to this question nor be big deal now, the biggest factor wey dey stop most Nigerian businesses from adopting Bitcoin na awareness..  Many local business owners no really understand Bitcoin, them dey always feel say na risky something.. Some of them still see am like scam self..  If they truly understand how it works, then at least the thought of adding am as payment option go come cross their mind..  But if awareness no dey, adoption no fit happen. Simple..

Majority of the persons wey i done interact with about accepting Bitcoin as means of payment the complain about volatility. Awareness no really be challenge for this our era. Many people dey aware of Bitcoin but has price no dey stable them go lose wetin no good. Infact their business fit go bankrupt if them over lose guard. As price dey drop the amount them suppose use restock their goods go drop and their capital go also reduce. Even me I no go advice person make e use am for business except them go just mark every payment wey them receive through Bitcoin as investment then the regular Naira go be for business expenses and restocking.

You've made a good point about volatility,  price instability will always be a major concern for businesses because small businesses are more likely to be dependent on a stable capital to be able to restock and run day to day activities.

If a business chooses to hold Bitcoin and it drops in value,  that will definitely affect their working capital,  and that risk does exist.

But I think it just depends on how the business decides to handle the Bitcoin they received.  Accepting Bitcoin does not necessarily mean holding it.  You can convert the Bitcoin to naira immediately after the transaction is completed.

I think in the end, besides volatility,  I think it's has to do with how businesses decide to deal with the risk.

[Fiatless]

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

1. Nigeria lacks basic infastructures that is why cash payments are still popular. Sometimes there might not be internet services.

2. Illiteracy is another reason. A high number of Nigerians don't know how to read and write.

3. Insecurity is another factor. There is this misconception in some areas that anybody who owns Bitcoin is rich. So people prefer to keep their crypto assets secret.

When you start to run a business, will you consider adding Bitcoin as a payment option?

It will depend on the location of the business and the demand from customers. If the business is located in high-end areas of Lagos and Abuja, I might consider it.

[sokani]

A business owner can:

1. Download a Trusted Bitcoin wallet
2. Generate a receiving address
3. Put a QR code to accept payments

This can work for people who own small businesses, freelancers, or people who provide a service. The barriers are low, and technically there is a lot of room to improve. And for faster payments,  layer 2 solutions like lightning network can actually allow instant transaction with very low fees.  So technically,  the barrier is  very low.

Agreed. Onchain payment should be suitable for small businesses, but for big businesses like eateries, shopping malls, etc, it is not ideal. It will take time for the transaction to be confirmed on the bitcoin network, and fees may also be costly when mempool gets congested. Lightning Network is much better. It is faster and cheaper. Some transactions take about 8 sec to get confirmed.

Regulation has been one of Nigeria's major issues, but now that crypto has been legalized recently, let's see what happens.

[Cryptoprincess101]

Except for big businesses if not accepting bitcoin as a means of payment will be very rare because not everyone want others to know that they are into bitcoin because if they accept bitcoin as a payment method it will automatically create an awareness and i don't know how effective the new tax reform is because i assume that if someone is caught using bitcoin for their business, it might look as if they want to hide themselves from being taxed which might lead to severe taxation on such businesses. Insecurity is another problem that will hinder people that wants to use bitcoin for their businesses because anyone who knows that you make use of bitcoin they will already assume you are a wealthy person thereby there will be people who will begin to plot evil against such person.

[Callido]

Currently, there is no law stopping Nigerians from using Bitcoin as a payment option, only that it is not widely used across, but we do have places, stores and restaurants that accepts Bitcoin. Adoptions takes time to happen, little by little, the need for Bitcoin adoption will be more.

But, if there is high increase in the need of Bitcoin as a payment option, government will definitely look into the matter, they may not totally restrict it, but it has to suit the economy where fiat will be appreciated more.

[Coyster]

Finding a merchant who accepts bitcoin is not an easy proposition in most parts of the world, it is not just in Nigeria. I would say the major reason why merchants anywhere are reluctant to accept bitcoin is due to its volatility. Many of them are worried about bitcoins volatility and they may lack the knowledge to know that they can accept it with a payment processor and have it converted immediately to their currency of choice.

That said, i know merchants in Nigeria that accept bitcoin. It is popular amongst merchants that sell phones and other digital devices. I also know a friend who bought a car late last year and he paid the dealership in bitcoin, it was an interesting story to hear.

[Solodoski]

What do you think is actually the biggest factor preventing Nigerian businesses from adopting Bitcoin?

When you start to run a business, will you consider adding Bitcoin as a payment option?

There is no limitation, it is a thing of choice. However the problem here is that small business owner cannot accept Bitcoin for transactions. It is best for large scale business that a drop in price may not affect the business much.
Yes, as a bitcoiner it is not a bad idea to accept bitcoin as payment. I would like that for my business. As I have said earlier, the business must be a large scale business, I wont accept bitcoin as payment for peanuts.

[AYOBA]

Majority of the persons wey i done interact with about accepting Bitcoin as means of payment the complain about volatility. Awareness no really be challenge for this our era. Many people dey aware of Bitcoin but has price no dey stable them go lose wetin no good. Infact their business fit go bankrupt if them over lose guard. As price dey drop the amount them suppose use restock their goods go drop and their capital go also reduce. Even me I no go advice person make e use am for business except them go just mark every payment wey them receive through Bitcoin as investment then the regular Naira go be for business expenses and restocking.

I can said that since when Nigerian accepted the Bitcoin is only few of people that have adapted to use it run their business and is only few people’s that done accepted idea of bitcoin is that not everyone has knowledge about the Bitcoin, and they don’t want to suffer their self because most of the people seeing it if they accepting bitcoin they might scam them.

But to be sincerely it’s not advisable to tell who don’t know anything about the bitcoin to accept it when the price is drop, because right from there they will not have believe on the bitcoin. Whereby the bitcoin as become a best coin in all over the world; in terms of investment or running a business.

[DiMarxist]

I think that, the biggest hindrance to Nigerian businesses not accepting bringing in Bitcoin into their business will be awareness about what Bitcoin really is . Because the truth is that, in as much as Bitcoin is popular and there is a significant amount of Bitcoin users in the country, there is still a great gap that exists why am saying this is because most business owners may not be in turned with the reality on ground when it comes to Bitcoin. So they have not seen the need to inculcate Bitcoin into their business.

[Sonia_123]

E dey difficult for the business men to start dey operate like that, na only the ones wey dey inside  bitcoin together na dem dey use Bitcoin for transactions .

The Nigeria government never adopt or even accept Bitcoin usage sef for the country, na only because of their greed make people nor dey get money, dem wan chop for where dem nor labor na him make dem come dey collect tax because as e dey like this bitcoin users still dey hide dey use am because if dem catch you with any trace or link to Bitcoin dem nor go spare you at all, so still keep you low key as you dey use Bitcoin, the government be like scam, dem nor allow bitcoin usage freely for the country but dey collect tax.

[IjawMan]

To accept bitcoin for payment for business for this Nigeria you go need to get big business size be that and you must employ workers with bitcoin knowledge to know how to prevent and avoid making costly mistakes  cause any mistake with bitcoin transactions na otilor.

And to avoid make you no loss na to the convert the bitcoin into stablecoins cause as na business money in no good make in deh in bitcoin like that since bitcoin price feat fall unexpectedly and it feat be when you want restock your business, na loss you go loss selling it at a falling price.

[Hypnotizer]

You've made a good point about volatility,  price instability will always be a major concern for businesses because small businesses are more likely to be dependent on a stable capital to be able to restock and run day to day activities.

That’s a very big factor wey dey stop businesses from integrating bitcoin acceptance into their business, basically bitcoin price can drop in seconds and nah their money go dey short..

But I think it just depends on how the business decides to handle the Bitcoin they received.  Accepting Bitcoin does not necessarily mean holding it.  You can convert the Bitcoin to naira immediately after the transaction is completed.

You know something bah…the main problem sef fit no be volatility, it should be the amount of bitcoiners that are willing to make purchase with bitcoin from those merchants…if plenti people want to pay in bitcoin then sure dem go fit start to dey collect that method of payment but why pesin go dey go through all this stress when not much people are willing to pay in bitcoin?

[Doan9269]

Perhaps if you're going to consider some of the current security channels in the country, it may be a good idea that our business patronage should only constitute the acceptance of Bitcoin payments for online customers. In contrast, those that may try to make a physical patronage should make use of Fiat just for our own safety, it can also save us from the regulations of government whereby they continue disturbing with demanding policies over tax payment and crypto related regulations, aside the challenges, I don't see anything bad in accepting bitcoin as a means of payment when we know that the world is turning to a digital era. Things are made easier online than in physical form under a decentralized network.

[AmaGold70]

Business men accepting Bitcoin in Nigeria right now will be a difficult task, the reason being that, the federal government of Nigeria has not officially urged people to accept Bitcoin as a means of exchange for goods and services. Even though many Nigerians are into bitcoin business, they are only doing that for the purpose of investing and not as a means of exchange.
There could be few people who might be accepting Bitcoin as one of their payment methods in the country Nigeria and they do so because, they are storing Bitcoin for long term purpose, they know how bitcoin work. But using Bitcoin as a trader or business man to run your daily business, I don't think is adviceable because of bitcoin volatility, it drops or goes up in price within seconds and there are times that network challenge can make you not to access your wallet immediately, and if your wallet eventually open and your bitcoin has dropped in price, your business money is already affected as you are going to record some losses.

[CryptSafe]

OP, accepting Bitcoin as a means of payment is not that easy considering the nature of it's volatility and the fact that most countries are yet to adopt it as a means of payment but however, I doubt if it would happen anytime soonest because countries are afraid of the fact that their citizens would neglect their own local currency for Bitcoin to avoid any trace or anything that would make government want to come take tax or whatever you call it. Aside that, the Nigerian government is yet to recognise crypto and Bitcoin as a means of payment but rather they approve of it as a trade able asset which is why it seems the clamp down on crypto transactions is reduced except for those that as re suspicious and connected to illegal activities.