According to the latest report, about 33.4 million Nigerians (35% of the nation’s adult population) own cryptocurrencies or have traded them over the last six months. The report attributes the rapid adoption of cryptos to growing inflation that is chipping into the local currency’s value. 

Converting Fiat Currencies to Cryptos Via Peer-to-Peer Platforms

A new report created by KuCoin, one of the leading crypto exchanges, has established that 35% of the Nigerian adult population between 18 and 60 years has used cryptos or traded them in the last six months. The report further pointed out that 52% of the crypto investors use about 50% of their assets on cryptos. 

65% of crypto investors in Nigeria convert fiat to cryptos through peer-to-peer platforms. This is an indication that most financial organizations are operating in line with the recent Central Bank of Nigeria (CBN) directive on cryptos in February 2021.

According to the directive, CBN asked financial institutions to freeze or block all bank accounts that are associated with cryptos. Those caught facilitating cryptos would be penalized. Godwin Emefiele, the central bank governor, has also warned Nigerians to avoid dealing with cryptos. 

Naira Dépréciation

Even with the warming from the governor, the study findings indicate Nigerians are planning to grow their investments in cryptos. In the report, 70% of Nigerian investors are planning to increase their cryptos in the next six months. 

The study has noted the dropping value of the local currency, the Naira, as the main reason for growing crypto adoption. In the last six years alone, Naira’s value dropped by about 209%, making more Nigerians consider going crypto. 

Another reason that drove people to cryptos is the COVID-19 pandemic. The report indicates that 26% of the crypto investors were persuaded to consider digital assets by the deadly pandemic in the last six months.