Nigerian crypto foreign investment is at a record low: Study

The largest economy in Africa has a foreign investment problem despite the exponential growth in crypto adoption.

The National Bureau of Statistics (NBS) reported on Tuesday that foreign direct investment (FDI) in Nigeria, the largest economy in Africa, dropped by 33% last year due to a severe shortage of dollars, which discouraged crypto companies from expanding into the country. In 2022, investment declined to $468 million from the previous year’s $698 million. According to the data, FDI has decreased by approximately 90% since its peak of $4.7 billion in 2008.

The adoption of crypto in Nigeria has grown at an exponential rate. The country currently has more active adult crypto traders, as a lot of citizens now prefer to store their money in digital currencies over fiat cash, due to the constant devaluation of the naira. In Chainalysis’ 2020 Cryptocurrency Geography Report, Nigeria

Lagos State Governor, Babajide Sanwo-Olu had earlier announced proposals for crypto adoption in the state according to reports. Some of the initiatives proposed by Sanwo-Olu include the establishment of a dedicated sandbox regulatory framework for cryptocurrency, the creation of a crypto-focused innovation hub and the provision of incentives for businesses that accept crypto payments.

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