Due to a heavy lack of dollars, FDI plummeted by 33% in Nigeria last year, which deterred companies of cryptocurrency from developing there. Although the use of cryptocurrencies is growing exponentially, the biggest economic power in Africa has an issue with foreign investment.
The largest economic power in Africa, Nigeria, had a 33% decline in FDI last year as a result of a chronic lack of dollars, according to data released on Tuesday by the National Bureau of Statistics (NBS). Also, the scarcity has prevented cryptocurrency businesses from entering the nation. Investment decreased from $698 million the year before to $468 million in 2022. The numbers show that FDI has declined by about 90% since 2008 when it peaked at $4.8B.
Downfall Of Cryptocurrency In Nigeria
In Nigeria, the use of cryptocurrencies has increased exponentially. Crypto traders are prevalent in the nation, and many people now prefer to keep money in cryptocurrencies over fiat money due to this ongoing downfall of the naira, the official currency. Nigeria placed eighth out of 154 nations in Chainalysis’ 2020 Cryptocurrency Report for acceptance and usage of cryptocurrencies. Although greater international cryptocurrency investment should have been encouraged by this acceptance rate, the opposite has actually happened.
The Bank of Nigeria ordered all financial firms to empty their accounts linked to cryptocurrency and other companies conducting business in the nation using cryptocurrencies.
A professional investment dealer named Olumide Adesina responded to the findings on Twitter by claiming that despite the people of Nigeria “love” entertainment, fintech, and cryptocurrencies, no place has given the effort to entice investors in such sectors. Another tweet from Adesina claimed that Lagos State will generate thousands of direct employment if it built a tech and cryptocurrency community akin to Silicon Valley. According to local media sources, Babajide Sanwo-Olu, governor of Lagos State, had previously proposed ideas for cryptocurrency usage in the state. Sanwo-Olu has suggested a number of ideas, such as establishing a special regulatory sandbox for cryptocurrencies, developing an innovation center centered on cryptocurrencies, and offering incentives to companies that take cryptocurrencies as payment.
