Topic: Nigeria's Economic Problems: Government Ban Cryptocurrency (Read 117 times)

The hike of foodstuffs , fuel and other commodities are really heartbroken, price of transportation is so draining that I think twice before going out. All these is really affecting the cost of living, Nigeria citizens have gone hungrier than ever. I just hopefully think the scenario of insecurity & robbery won’t be the order of the day. A failed government trying to lay the blame on crypto?? To the length of banning p2p on binance ?? Asking for 10 billion dollars to fill their protruding stomachs? Unknown to them they can’t clamp down all exchanges when we the still have the likes of BITGET, kucoin, okx etc smoothly running p2p … this country is a Big boring joke

You said it all but government fails to understand that this the problem of the economy challenge we are facing today. Nigeria depends on importation so much that they are not ready to make their own. Even most of the products made in Nigeria we don't even use them and we look down on it. This is what government need to look into but it is as if they don't know where to start from. This government really needs to do something to make the economy better, than trying to do things that have nothing to do with economy.

In my opinion this is just a wasting of time, government is just wasting his time to ban some cryptocurrency exchanges but let give it a day and some months there will be another way to open it because even the reach men in Nigeria are also having connections with all this this exchanges yes it is good that the government is trying to do this for the benefit of the country but the government is not starting it from the bottom, the government just went straight to head, Nigeria problems is not only problem the exchanges is also caused from our business men some companies in Niger are the one that is making things worse for us and the government is pretending as if he is not seeing them because of what he is collecting with them.

No matter how hard the government will try to ban some exchanges, Nigeria will never change, because that’s not only problem of Nigeria, since 2023 that the government start talking about fuel subsidies up to now nothing change, so why government can not deal with that one because due is the main problem of Nigeria right now, if fuel price did not come down all this complaining about Nigeria will not change, so now since last week dollar prices have come down and till now nothing change, the price of goods are still the same, that is why I said Nigeria can never change no matter how government try if he didn’t bring fuel price down.

And the most devastating part of this is when I heard that most of our exports are being bought from us with the equivalent of naira, whereas those imports that we bring into the country are bought at the dollar rate. I think that was what I heard from one of these interviews I've been listening to about all these economic crises in the country, from a seasoned lawyer.

 Now, I can't imagine if this is really true because what this means is, if we are taking out our exports and allowing those buying it from us to pay in naira equivalent, but then when we come to buy from them, they sell it to us in dollar equivalent, that means we are suppressing our currency. Because what that means is, there would be more demand for the local currency by these buyers that are coming into the country, which will only weaken the local currency.

Then, what do you expect about inflation when, at the end of the day, we buy those products in dollars? So, if we are importing and we are buying in dollars, what that means is there are a lot of people looking for that dollar currency, which will amount to them holding it. And that is why you find situations whereby even people who would not really need dollars are hunting for it, and they can easily get it from the BDCs.


Exactly, if the Federal Government aims to empower our local market, then we must also have stable electricity in the country. According to many scholars of the economy, it is said that MSMEs (Micro, Small, and Medium Enterprises) contribute more than 40% of the revenue generated by the country's GDP, which is about $200 billion.

Now, imagine if we can digitize some of these MSMEs, it will boost our economy even more because the country will provide an ease of doing business to those business owners. But when faced with a situation where even basic electricity is not guaranteed, what can we expect of the economy of the country? It is definitely going to be a quagmire, as it is right now.


Now, you can imagine the lack of priority in the government's policies or activities by attempting to ban P2P services in Binance and other cryptocurrency activities. It was alleged that over 20 billion worth of transactions moved through that window in Binance alone, and the country is not able to monitor these transactions. It's quite unfortunate, really.

I think we should be proud of what we are against, proud in the sense that the country should be able to properly regulate and monitor these activities to boost the economy further and make it easier for people to invest through these platforms. When you can easily access transactions, especially foreign exchange, it becomes easier to do business in those localities. Many more developed countries are properly regulating these exchanges, and it should be relatively easier for the government to control or regulate activities on these online platforms since we already have regulatory agencies like NIBSS responsible for this.

The problem of this country is caused by our leaders, when you are been made a manager of a company, if such company is not doing well in terms of growth and profit you will be blamed for whatever happens, lets apply this to nigeira, our president and his cohorts has failed in their economic policies, do exchanges increase dollar in the market and increase naira, I think we have myopic leaders who always blame other people for their mismanagement, how will good thinking person anonunce a policy without backing it up with actions that will not affect the citizens, since this new regime took over from the past government Nigerians have not feel the impact of governance, though I never said the past administration is better than this one but the president was much in haste to take some decision without rolling out sustenance means to caution the effect of his decision, sometimes I feel that our government knows what they are doing, people has being complaining of deficits in production Of all items in Nigerian and up till this moment our government has been playing deaf ear, how will a country expect their currency to be recognised without showcasing to the world what they can offer, our leaders needs to rethink.

Apart from the problem of over relying on importation, we run a free market system that allows individuals increases prices without bringing it down even when dollar prices comes down. A price control system is needed and not just fighting Cryptocurrency and other exchange platforms.

The main cause of the problem is because our government failed to make the country to be less relying on foreign products. We are importing goods more than necessary. In technology we lag behind and the foreign nations are innovating new products that we continue to import.

Federal government needs to tackle the reasons we rely on importing goods. We need ways they can encourage and create a good environment of increasing productivity in Nigeria. Electricity is bad and has gotten worse again during this dry season as usual. They should start by providing constant electricity. Many companies left the country because of bad electricity. There is much more to discuss about this than Electricity.

So the government are not solving the primary reasons but going for secondary reasons. They wanted to control the parallel market and which they have just achieved like the CBN rate. Exchanges and others are restricting people that have ads from selling if not following the rules of the CBN, making the CBN to be indirectly using the exchanges to control the P2P price. Naira has increased in price now, but things in the market are still expensive and not reducing in price at all.

For sometime now the activities of Bitcoin mixers and their rates in the exchange platforms have been a concern in this forum. Though the basic principles of businesses is to make gains but the percentages taken by Bitcoin mixers seem to be one sided in gains.

For sometime now , experts Believe that, Nigeria's current Economic problem are caused by that increase in the transaction and other exchange rates and charges, which  devalues the country's currency. It is on this reason that, about seven exchange platforms have been banned and their operators arrested.

Some of these platforms included Binance, Octafx,  cryptocurrency and others , this is aimed at making the Nigerian Naira gain value to reduce the current economic hardships on Nigerians but, those at the gaining end seem to be reluctant and indifferent about the impact of their charges and interest rates on the larger population of Nigerians.

Do you actually think , the current Economic Problems of Nigeria are caused by the activities of the exchange market as seen by experts and what should be done to reduce the current economic hardship. Mind you, this decisions directly affects this forum.

Let's discuss the way out for crypto lovers.