Nigeria: The future of Web3, crypto ahead of 2023 elections

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  • Nigeria became the first African country to launch a CBDC
  • In 2021, Nigeria was ranked the third country globally with the highest bitcoin trading volumes after the US and Russia.
  • In 2017 £1 traded at N320. Nearly five years later, in 2022, the price shot up to N707. The value of the Naira has drastically sunk, causing its citizens to turn to other means.

Over the past half-decade, Web3 in Africa has steadily grown. Quite ironically, only a select few countries within the continent are responsible for this sudden growth rate. One contributing factor is NFT, and crypto in Nigeria has significantly contributed to Africa’s progress in the new digital age. The crypto adoption rate in Nigeria accounts for at least a third of Africa’s total crypto trading volumes. NFT in Nigeria has also taken the limelight as it is currently leading as one of the top NFT marketplaces in Africa. They produce artwork valued in thousands of crypto coins. The Nigerian crypto trader has significantly placed his mark on the world.

This West African country might pioneer the dawn of Web 3 in Africa as it strives to dominate not one but two key elements of this new technology.

The fire behind crypto in Nigeria

Web 3 in Africa is on a steady slope as more countries continue incorporating various blockchain applications into their economy. The crypto adoption rate in Nigeria is at the very top as more crypto traders line up to join the bandwagon of success. One of the main reasons crypto and NFT in Nigeria are thriving is mainly because of governments support. Recently many African governments have had a change of heart through the increased recognition crypto receives.

Nigeria’s government initially had a negative view of cryptocurrency. On February 5th, 2021, the Central Bank of Nigeria ordered barring banks from enabling crypto transactions throughout the country. Fortunately, within the same year, the government had a slight change of heart as the country ranked sixth on the list of top 20 countries globally with the highest grassroots crypto adoption.

Also, Read about crypto making millionaires in Nigeria despite government hostility.

Granted, its initial attempt was to salvage its native fiat currency from being obsolete as more Nigerian crypto trades opted to turn to it for better financial support. 

Unfortunately, another driving factor behind Nigeria’s crypto is its highly volatile fiat currency. The truth is that the value of the Naira compared to foreign currencies has been continually depleting for decades. In 2017 its government valued £1 at N320. Nearly five years later, in 2022, the price shot up to N707. The value of the Naira drastically sunk, causing its citizens to turn to other means. Fortunately, this led to an increased dependency on crypto in Nigeria, which led to the massive growth of Web 3 in Africa. This is mainly because Nigeria’s economy is on an inclined trajectory despite its depleting fiat currency.

The significant wins for crypto in Nigeria

The crypto adoption rate in Nigeria has received a massive audience over the past few months. The rapid growth of Web3 in Africa led to the need for various organizations to facilitate its services, and Nigeria ran at the opportunity. Nigeria currently hosts several crypto exchange platforms and NFT marketplaces to support its artists. Despite the fall of the crypto market in 2022, Nigeria surprisingly had a steady incline. In fact, throughout the decade, Nigeria has significantly embraced the opportunities that Web3 in Africa offers.

Creation of the Nigerian CBDC

Soon after the Central Bank of Nigeria banned cryptocurrency, the entire globe recognized the efforts of the Nigerian crypto trader. They recognized the country as the sixth country globally, the highest crypto-adopting country. This sparked the interest of the Nigerian government, and soon after, in the same year, Nigeria launched a CBDC.

This move is forever marked in History as Nigeria became the first African country to launch a CBDC. It caused a ripple effect throughout Africa’s ecosystem. Soon after, other countries such as Kenya, South Africa, Tunisia and Rwanda had a change of heart and started having a positive outlook on crypto. President Muhammadu Buhari launched the e Naira on October 2021, and soon after, the Nigerian crypto trader turned to the eNaira.

Creation of Web 3 social platform

As crypto in Nigeria steadily thrived, innovators started looking at the bigger picture, Web3 in Africa and soon after branched into different segments of web 3. This broader outlook led to the utilization of other Web 3 applications, eventually leading to the creation of organizations such as Gamic.

Web3-Platform-Gamic
Gamic, the Nigerian-based Web3 Social platform, is a by-product of crypto in Nigeria as users are now diverse to other fields of Web3.[Photo/Medium]

Also, Read Nigerian artists conquer the NFT marketplace in Africa.

Gamic is a Web 3 social communication platform based in Nigeria. The platform steadily gained influence thanks to the steady growth of crypto and NFT in Nigeria. Their functionality and steady growth son caught the eyes of Polygon, a key figurehead within the crypto industry. This partnership allowed Gamic to expand its influence beyond the borders of Nigeria and Africa. 

The main aim of this newfound reach was to increase blockchain-powered opportunities in Africa. It enables the average Nigerian crypto trader and NFT artist to interact and share information about the various topics of Web3.

Nigeria significantly contributed to the future of Web3 in Africa.

The steady growth of Nigerian crypto exchange platforms

Due to the increased rate of crypto in Nigeria, several entrepreneurs have taken advantage of it to create Nigerian-based crypto exchange platforms. This has significantly contributed to Web3 in Africa and Nigeria. This is because a local crypto exchange allows the average Nigerian crypto trader to easily convert from fiat to crypto.

Also, Read Yellow card: Nigeria’s leading fintech expands its African reach.

There are numerous upcoming Nigerian-based crypto exchange platforms, such as:

  • Buycoins– this is a local crypto exchange platform in Nigeria that allows users to easily transact, buy and sell cryptocurrencies directly withi their local bank account or debit card. Its sophisticated and direct correlation between Nigeria’s traditional banking system and crypto has significantly boosted its adoption rate. It is one of the most popular cryptocurrencies in Nigeria.
  • Quidax – this crypto exchange allows the Nigerian crypto trader to buy, sell and store Bitcoin, ETHEREUM, XRP Bitcoin and other altcoins. Their main aim is to empower the average crypto trader and to give power to the next generation of remittances.
  • Nestcoin – is another popular crypto exchange platform that has diverse capabilities. Unlike the rest, Nestcoin is focused beyond crypto and generally advocates for the widespread application of Web 3 in Nigeria. It builds, operates and invests in crypto-native products. Unfortunately, it did suffer a significant blow in 2022 due to the fall of FTX, where it stored most of its capital. Nevertheless, it still capitalizes on Nigeia’s massive trading volumes and is still operational.

The constant growth rate of Nigerian-based crypto exchanges is also evident. Roqqu, a nigeran crypto exchange, recently received a European Virtual currency license. This meant that Roqqu could expand to 30 other countries beyond its borders and in international waters. Roqque hopes to reach over 5 million users in 2023, up from 1.4 million users in Nigeria alone. Many Nigerian crypto traders have enabled multiple exchanges to thrive in their ecosystem.

Continued involvement of the Nigerian government

In 2021, Nigeria was ranked the third country globally with the highest bitcoin trading volumes after the US and Russia. Ever since the globe was made aware of Nigeria’s potential to pioneer Web3 in Africa, its governments have changed drastically. Recently its government announced its intention to release a legal makework for stablecoins and initial coin offerings (ICO).

Crypto-regulation
Crypto in Nigeria has significantly grown, and now its government is ready to establish legal frameworks to govern its crypto adoption.[Photo/Medium]
Published under the headline “Nigeria Payments System Vision 2025“, the 83-page report from the CBN considers the development of a regulatory framework for the potential usage of stablecoins. This is after it created several other regulations dedicated to its eNaira. The participation of its governments in crypto in Nigeria has exponentially benefited its growth. It took some time, but Nigeria’s government has seen the lucrative power of Web 3 in Africa.

Also, Read Solana plummets due to its association with FTX.

NFT in Nigeria

Alongside crypto in Nigeria, its NFT marketplace is also steadily thriving. Nigerian NFT artists are widely known for their deep, cultured artwork causing their pieces to have high initial bidding prices. Prince Jacon Osinachi, the first Nigeria NFT artist, once sold a single NFT art piece for $75000, placing Nigeria on the maps of the NFT world.

NFT-in-Nigeria
NFT in Nigeria has also steadily grown as more Nigerian crypto traders branch out and explore the numerous applications of Web3 in Africa.[Photo/TechPoint-Africa]
Soon after, Nigeria became well known for its vibrant NFT community. As a result, several Nigerian entrepreneurs created their NFT marketplaces to ensure NFT in Nigeria thrives just as much as its crypto adoption rate. Companies such as Afropolitan, Best Blockchain Devs, and Suffescom are thriving NFT marketplaces. Each aims to establish a thriving ecosystem for the average NFT artist.

Conclusion

The crypto adoption rate in Nigeria is at an all-time high, and it has inspired many of its citizens to go beyond and apply other functionalities of Web3.

This led to the widespread of NFT in Nigeria alongside several blockchain developers, each awed by the lucrative venture it has to offer. In the end, Nigeria has proven time and time again why bit stands at the pinnacle of Web3 in Africa. We may even have the right to state that Nigeria may have a change leading Web 3 in Africa and ushering in a new technological age for the continent.

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Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.
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