The Nigerian cryptocurrency scene has recently been a battleground of opportunity, scepticism, and government control. At first, it started with the government lifting the ban that was previously placed on cryptocurrency in Nigeria. This resulted in a loud cry of jubilation in different crypto camps. People can now openly transact and engage in cryptocurrency without the government trailing after their footprint. This joy was however cut short when the Dollar to Naira rate increased significantly. The government urgently needed someone to blame for the sudden price movement of the dollar against Naira. And no other person or entity could fit into the position than major crypto exchanges in Nigeria.

Major crypto exchanges like Binance, Coinbase, and Kraken found themselves in the crosshairs, reportedly blocked by the Securities and Exchange Commission (SEC) for allegedly facilitating illicit activities contributing to the Naira's depreciation against the Dollar.

But the blame game does not end there. The government’s crackdown on crypto firms has led to mixed reactions among crypto and non-crypto enthusiasts. Some believed it was high time the government regulated the people under the guise of anonymity of cryptocurrency shady activities, while others believed that the recent decisions of the government may lead to a negative ripple effect in the economy. On the other hand, some people, who know little to nothing about cryptocurrency, but like the government, need someone on whom they blame their misfortune; hence, they resort to commending the government's decision and claiming that crypto has done more harm than good in Nigeria.

This situation begs the question: has cryptocurrency inflicted more harm than good upon the Nigerian economy? Is cryptocurrency truly the root of our problems? To address these concerns, examining Nigeria's economic landscape before the advent of cryptocurrency is crucial.

What Did the Nigerian Economy Look Like Before the Advent of Cryptocurrency?

Before the introduction of cryptocurrency, the Nigerian economy experienced fluctuations in its currency value against the dollar, dating back to the mid-1980s. During the era of Babangida, Nigeria faced a debt crisis with the IMF, stemming from factors like declining oil prices, resource mismanagement, and excessive borrowing. In response, Babangida's regime initiated the Structural Adjustment Program (SAP) in 1986, which included the devaluation of the Naira to rectify economic imbalances and stimulate export-driven growth, as recommended by the IMF and World Bank.
However, this devaluation marked the onset of Nigeria's economic challenges. Subsequent administrations continued to approach the IMF for loans, often resorting to devaluing the Naira as a means of repayment. Consequently, the purchasing power of the Naira dwindled against the dollar, gradually deteriorating the Nigerian economy.
Various governmental efforts to mitigate the rising Naira-to-dollar exchange rate proved futile over time. While certain administrations might temporarily stabilize the situation, subsequent shifts in leadership often reversed these gains. This demonstrates that the issue of the Naira's devaluation against the dollar predates the advent of cryptocurrency, indicating a longstanding challenge within Nigeria's economic landscape.

How Has Cryptocurrency Influenced the Nigerian Economy?

Since its inception in Nigeria, cryptocurrency has wielded considerable influence over the nation's economy. Yet, when analyzing its impact, three distinct groups emerge: the players, the pawns, and the politician

The Players - Changing Lives, One Coin at A Time

For many Nigerians, cryptocurrency isn't merely a shortcut to wealth, but rather an opportunity to redefine their narratives. The universal accessibility of crypto implies that anyone equipped with a smartphone and internet connection can engage. Many stories abound of Nigerians transforming tiny investments into substantial windfalls through NFTs or by simply engaging in emerging blockchain ventures and receiving valuable airdrops.

This newfound prosperity isn't stashed away in foreign accounts. Instead, the proceeds from cryptocurrency ventures are being channelled into tangible businesses, thus fostering employment opportunities. Many Nigerians involved in crypto opt to utilize their earnings to establish new enterprises, hire individuals outside the crypto sphere, and distribute the wealth generated from crypto activities. Consequently, this wealth multiplies, benefitting even those who are not directly involved in cryptocurrency. Families are sustained through these enterprises, the unemployed find occupation, and lives are transformed through the decisions of individuals to engage in the crypto space.

For the players, cryptocurrency is a means of transforming lives one coin at a time. Young Nigerians need not fret over unemployment; with crypto, they find purpose. Participation guarantees rewards, which extend beyond the individuals themselves to encompass their families, friends, and even those outside the crypto scene.

Cryptocurrency, in this regard, has profoundly impacted many Nigerians through the involvement of just one person. Imagine the amplified benefits if more individuals were to join the fray. If one more player were to enter the game?

The Pawn - Stuck on The Sidelines

The conversation around crypto exposes a clear division. The pawns in the game. These are people who can be described as non-playable characters. They have not explored the opportunities in cryptocurrency and remain sceptical about it. But in the end, are indirectly impacted by its effect on the economy. These set of people are like pre-programmed characters, unable to think for themselves or act outside their limited scope. They are quick to blame cryptocurrency for Nigerian economic woes rather than the complex web factors that contribute to them.

To the pawn, crypto is a technology they do not understand, and neither can they keep up with it. Their scepticism makes them miss out on the potential for financial gain and economic advancement that crypto offers to the players. They perceive it as a threat to their reliance on established systems, as crypto champions self-reliance in financial matters rather than dependence on external entities. Consequently, they opt to remain on the sidelines, engaging in blame games and refusing to partake in cryptocurrency ventures.

The Politicians - Wielding the Ban Hammer

The Nigerian government occupies a curious space in this crypto game. While not explicitly outlawing cryptocurrency, their recent actions seem aimed at stifling its growth. The blocking of major exchanges and the Central Bank’s (CBN) ambiguous stance create uncertainty and discourage legitimate businesses from entering the market.

This approach is short-sighted, instead of cracking down, the government could be regulating the space, ensuring consumer protection and attracting crypto businesses that can contribute to the economy through job creation and tax revenue.

To the politician, Crypto is a threat against their centralized system, yet an opportunity to boost their economy. Hence, their stance of uncertainty concerning it.

The Future - A Game Yet to Be Played

The conclusion of Nigeria's cryptocurrency narrative hangs in the balance, awaiting inscription. Nigerians rightfully deserve the liberty to engage in the global digital economy, while the government holds responsibility for nurturing a secure and forward-looking crypto environment. However, the question remains: Will Nigeria embrace crypto as a path to progress, or remain stuck on the sidelines of the game?
Only time holds the answer.