Nigeria is experiencing difficult times politically and economically. Reports claim that the West African country had overtaken India as the poorest country in the world. With a population of 190 million people, nearly 50% of its population, 86.9 million Nigerians now live in extreme poverty. Faced with numerous challenges ranging from population boom, insurgency, bad policies and governance, solutions to poverty seem to do little. However, cryptocurrency and the blockchain technology have been used to alleviate the problems of countries such as Venezuela and Zimbabwe. Can it do the same for Nigeria?
Create Inclusion for the Unbanked
Cryptocurrencies can aid Farmers to leapfrog the unnecessary interest rate put up by traditional institutions. With about 66% of its population unbanked and most of its farmers living in rural areas, Nigerian farmers still have to resort to crude means of farming. However, cryptocurrency can provide easy access to loans and donations and lower or no interest rates on loans. When farmers are empowered with the needed finances, the nation can experience financial freedom.
Alternative to local economies suffering from high inflation rates
Countries such as Zimbabwe, Venezuela, and South Sudan are currently facing high rates of inflation. Nigeria also suffered 15.7% inflation in 2017 and an alternative means is always needed to save the country from sinking into despair. When fiat fails the people cryptos have proven to be of help. This virtual currency is immune to government interference and inefficiencies. Nigeria can experience financial freedom from inflation by utilizing cryptocurrencies.
Cross-border Payments
Nigeria is a commercial country with its economy largely dependent on importation. However, making cross-border payments can prove to be very difficult with traditional payment gateways charging as high as 10% per transaction. However, cryptocurrencies support cross-border and international trade. If the Nigerian market can get access to a larger customer base that accepts cryptocurrency, this will invariably increase sales and growth. Also, cryptocurrency will aid the country in getting cross-border remittance. Africa has about 30 million of its citizens working abroad and about six African countries rely on remittances for 10% or more of their GDP, with 19 countries relying on diaspora remittances. This money helps in fueling the country’s economy. Cryptocurrency offers a fast, secure and cheaper means of transactions and remittance to Nigeria can now be done easily.
Create Employment through Cryptocurrency Startups in Nigeria
Asides offering Nigerians financial inclusion, cryptocurrencies can help Nigeria generate employment opportunities. The cryptocurrency startup industry is growing and manpower is constantly being needed. A lot of African countries have recognized the opportunities cryptocurrencies and blockchain technology offer to their economy. Most of these countries have established numerous cryptocurrency startups in the past years. When the unemployment rate in a country drops, the country is on its way to financial freedom.
Do you think cryptocurrency can create Financial Freedom for Nigerians? Share your opinion with us in the comment section below.
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