Direct investment in the fintech sector negatively impacted by Nigerian cryptocurrency prohibitions and a Twitter ban
According to a report, Nigerian government restrictions on crypto trading may have attributed to a drop in foreign direct investment in the fintech sector.
The same prohibitions, as well as the Twitter ban, have harmed young Nigerians who make money through cryptocurrency trading.
The report captioned Africa’s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities, was released collectively by the Secretaries-General of the Organisation for Economic Co-operation and Development (OECD) and the United Nations (UN).
The report stated that Nigeria’s constraints on cryptocurrency transactions and total ban on Twitter have hampered foreign direct investment in the fintech industry, affecting millions of young Nigerians who rely on it for a livelihood.
Nevertheless, according to a snippet from the report published by Business Insider Africa, some Nigerian youths may have “legally bypassed these restrictions and continued the business.”
Reports also shows that peer-to-peer (P2P) crypto trading in Nigeria exploded briefly after the central bank requested financial institutions to stop enabling crypto-related transactions.
Crypto traders were blatantly denying Nigeria the taxes and transaction fees that would otherwise come into the scheme, according to the report, by shifting to alternative but legal ways of transacting.
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