President Tinubu’s administration has recently cracked down on peer-to-peer (P2P) cryptocurrency trading in Nigeria, leading to outrage among many young Nigerians. However, despite these efforts, the enthusiasm for Bitcoin remains strong in the country.
According to Google Trends statistics, Nigeria is currently the country with the highest interest in Bitcoin, closely followed by El Salvador. When analyzing the geographic distribution of Bitcoin interest in Nigeria, Delta state emerges as the leader, followed by states like Anambra, Ekiti, Enugu, Ondo, Ebonyi, Bayelsa, Osun, Edo, and Imo. Interestingly, Lagos, Nigeria’s major commercial hub, does not rank among the top 15 cities in terms of Google search interest for Bitcoin.
These findings suggest that areas characterized by insecurity, low banking accessibility, and a high percentage of millennials are more likely to embrace Bitcoin as a reliable means of storing value and facilitating transactions.
In response to inflation and currency fluctuations, Nigerians have turned to stablecoins, particularly those tied to the U.S. dollar, as a safeguard. Tether (USDT) dominates the market as the most popular stablecoin, and its use is increasingly practical for local businesses and the diaspora to conduct transactions.
A United Nations study highlights Nigeria as one of the world’s youngest countries and one of the fastest-growing in Africa. The under-15 age group makes up 43% of the population, indicating a youthful demographic that is more inclined to explore digital currencies.
The Nigerian government has taken controversial actions in its attempts to address economic challenges and prevent a currency collapse. In 2024, preparations began for new regulations that would ban P2P cryptocurrency exchanges using the Nigerian naira. Additionally, the Securities Exchange Commission (SEC) accused the Binance crypto exchange of currency manipulation and speculation, which allegedly led to the devaluation of the naira and necessitated government intervention.
The SEC demonstrated its firm stance by imposing a ban on Binance’s operations in Nigeria and arresting and detaining its top executives, Tigran Gambaryan and Nadeem Anjarwalla, to uphold regulatory standards. While Anjarwalla managed to escape custody, Gambaryan was apprehended in Abuja and now faces trial on charges of money laundering and tax evasion.
In January 2024, the Central Bank of Nigeria released initial guidelines for banks to open cryptocurrency accounts, although banks are still prohibited from trading or holding virtual assets in their portfolios.
Overall, the Nigerian government’s actions reflect a balancing act between enforcing regulations and addressing concerns surrounding cryptocurrency, raising questions about the appropriate level of enforcement in the crypto market.