Cryptocurrency adoption in Nigeria has continued to surge making Nigeria one of the big players in the crypto space. It is a delight to know that Nigeria host Bitcoin ATMs and you can pay for some services -like hotel bills- in some major cities like Abuja, Lagos, and Port Harcourt with bitcoins, as well as shop in some stores nationwide.
About Nigeria
Nigeria is the 7th most populous country comprising Africa’s largest economy and population. The World Bank considers Nigeria to be an emerging market and it's widely seen as a prospective economy. Though it still ranks 152nd in the Human Development Index and has a variety of challenges and problems regarding organized crime, the lack of education, and human rights.
Cryptocurrency in Nigeria
Nigeria as Africa’s largest economy is the largest source of Bitcoin trading volume on the continent.
According to Google Trends, three of the top five ranked nations for Google ‘Bitcoin’ searches are African, with Nigeria consistently topping the list - driving nearly twice the traffic as the second-ranked country, Austria.
What is Cryptocurrency?
A cryptocurrency is a digital asset designed to be transferred between people in virtual transactions. It exists only as data and not as physical objects; you cannot actually hold Bitcoin in your hand or keep Bitcoin Cash in your safe.
Owning Bitcoin actually means you have the collective agreement of every computer on the Bitcoin network that it is currently owned by you and that it was legitimately created by a miner.
Is Cryptocurrency Legal in Nigeria?
The use of Bitcoin and Bitcoin cash is legal in Nigeria. Though, the Nigeria Securities and Exchange Commission (SEC), warned citizens about the risks of cryptocurrency investments and some frauds associated with it. However, the Nigeria Deposit Insurance Corporation (NDIC) and Central Bank of Nigeria (CBN) have plans to adopt cryptocurrency tech and have set up committees working on implementing blockchain into governmental insurance and financial services.
This move comes as a surprise since the Central Bank of Nigeria stated that dealers and investors in any cryptocurrency in Nigeria are not protected by law, according to the CBN circular on the 28th of February 2018.
Bottom line - the use of crypto in Nigeria is legal!
Where to Buy and Sell Bitcoin, Bitcoin Cash, and Other Cryptocurrency in Nigeria?
Nigeria is a market for several Bitcoin and cryptocurrency exchanges. You will need a crypto wallet to buy, sell, and trade bitcoin/cryptocurrencies.
Don't have a wallet? Read my guide on the best Bitcoin & cryptocurrency wallets.
I've compiled a list of popular and best Bitcoin and crypto exchanges with especially good offerings for Nigerian
1. Luno
Luno is a crypto exchange that was originally launched as BitX in 2013 and has grown to be popular in Nigeria.
Currently, Luno supports just 5 cryptocurrencies; Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin. You can purchase these cryptos using a credit card, bank transfer, and cash via bank deposit. Nigeria Naira and other fiats like EUR, IDR, MYR, UGX, ZAR, and ZMW are accepted on Luno. However, Luno allows you to only access the fiat wallet for your country.
You can also withdraw directly to a bank account in your local currency.
2. NairaEX
NairaEx is a leading Nigerian Bitcoin exchange where you can buy and sell Bitcoin, Litecoin, Bitcoin Cash, Ethereum, and Perfect Money with Naira.
NairaEX touts itself as "Nigeria's Premier Bitcoin Exchange" and it is indeed the largest Nigeria-based exchange currently open for trading. Its users can purchase and sell bitcoins and other cryptos with Perfect Money, bank transfer, or deposit.
The only fiat currency that NairaEX currently accepts is the Nigerian Naira (NGN) and the cryptos currently supported are Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
3. LocalBitcoins
LocalBitcoins is a peer-to-peer marketplace and a great option for buying and selling Bitcoin in Nigeria using a variety of payment methods. From the looks of it, the use of bank transfer is especially popular among Nigerians.
4. Binance
Recently, Binance has been greatly expanding its support for Nigerian users.
Early in 2020, Binance hosted its first-ever Crypto Masterclass in Benin, Nigeria. The aim is to educate and raise awareness about Bitcoin and blockchain. Binance has also made it easier for Nigerians to buy, sell, and trade crypto on its platform.
In addition to allowing Nigerians to buy Bitcoin with a debit or credit card, Binance also has a peer-to-peer (P2P) marketplace, similar to Paxful or LocalBitcoins.
Bitcoin ATM in Nigeria?
Despite being home to the largest Bitcoin and crypto trade volume in Africa, Nigeria is the eighth country in the continent to host a Bitcoin ATM. Blockstale BTM, the company that installed the ATM in the Dazey Lounge and Bar in Lagos state, has plans to launch 30 or more terminals across Nigeria.
The installation of the country’s first Bitcoin ATM may be a signpost for broader cryptocurrency adoption across the nation.
Final Thoughts
Cryptocurrency, especially Bitcoin is not new to many Nigerians. People know about Bitcoin and know they can make money trading, but some crypto and Stablecoins are still not widely used or well known. The major challenge is that the Naira isn’t accepted on any major exchanges where you can get some of these coins/tokens, and in turn, the peer-to-peer trade interest is very low.
Though the Nigerian government has issued warnings about the volatile nature of cryptocurrencies in the past, it has not issued concrete laws that fully cater to the pressing needs of the cryptocurrency industry.
Despite all the legal uncertainties about cryptocurrencies in the country, Nigerians happen to be the highest crypto-traders in Africa.
You would be amazed by the level of acceptance of crypto-currency in Nigeria. Although Nigeria may not be the first location of note while discussing crypto, it proves to be a fertile ground for advancing the blockchain revolution.
Really cool that nigeria is that open to the idea of bitcoin now and that so many stores are even accepting that as payment already