Crypto transactions hit a record high in Nigeria despite Government's sanctions

By: Damian Okonkwo

The volume of Cryptocurrency transactions carried out in Nigeria has attained a record high in 2022 despite the current ban placed on Cryptocurrency transactions by the CBN.

According to the report from punchng.com “Nigerians traded at least N77.75bn ($185m) worth of Bitcoin in the first three months of the year despite the Central Bank of Nigerias restrictions on cryptocurrency transactions in the country.” This amounts to a 5.71% increase from the N73.54bn worth of Bitcoin that was traded in the corresponding period of 2021.

This data was disclosed by Paxful exchange which has become one of the most popular crypto exchange platforms in the country.

As noted by the Paxful exchange, “trades from Nigeria accounted for 25.87 per percent of the total N300.48bn ($715m) worth of Bitcoin that was traded on the platform in the quarter under review.”

Following the report, “this marks an over 8.33% increase from the N277.377bn ($660m) that was traded on the platform by Nigerian traders in 2021.” This has further set Nigeria apart as the largest of the Paxful exchange in 2022.

Moreso, according to the report from KuCoin - a third major crypto exchange in Nigeria with over 11 million registered users; over 33.4 million Nigerians today indulge in cryptocurrency transactions using the platform.

More so, a similar report from Binance titled “The World Goes Crypto: Top 5 Countries Adopting Crypto and How BUSD Helps,” revealed that Nigeria is currently the number one leading country in cryptocurrency adoption. This is based on the volume of transactions carried out on the exchange by Nigerian citizens today.

It appears the ban placed on Crypto trading by the CBN last year has only created more awareness for cryptocurrency in the country, leading more citizens to learn about the business and delve into it as an alternative source of income. Others would rather blame the rapid embrace of Cryptocurrency trading in Nigeria on the high rate of unemployment and worsening economic conditions.

The restrictions on Cryptocurrency transactions in Nigeria were made in February 2021, by the CBN seeking to control the rapid embrace of Cryptocurrency in the country. Hence, they prohibited all banks in Nigeria from dealing with all crypto exchanges and other entities dealing in crypto assets.

In light of this ban, major crypto exchanges in Nigeria tried to provide an alternative means of buying and selling crypto for Nigerians by creating a Peer-to-Peer platform.

Nigeria today continues to lead all other African countries in the march towards cryptocurrency adoption as the country with the largest volume of Cryptocurrency transactions. Many hope that with the new government law meant to guide all crypto exchanges in Nigeria; that the CBN will definitely reconsider its stance on cryptocurrency trading in Nigeria.