Nigeria’s fintech sector and the millions of young people who rely on it for legitimate business were greatly impacted, following the federal government’s ban on cryptocurrency and suspension of microblogging site, Twitter, thereby crippling foreign direct investment (FDI) in the industry, a new report has stated.
The report, ‘Africa’s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities,’ published under the responsibility of the Secretary-General of the Organisation for Economic Co‑operation and Development and the Secretary-General of the United Nations, with support from the African Development Bank, noted that young people engage in jobs in the tech sector to survive but this can be adversely affected by varying government policies.
“Jobs in the tech sector range from creating apps, trading digital currencies, operating in social media marketplaces, to freelancing and gig work. By doing this, many young people are able to plug into the global economy and make enough to get by. However, this involves the expense of data and devices, and can be frustrating when arbitrary government policies are enacted.
“The restrictions on cryptocurrency transactions and the outright ban of Twitter in Nigeria have crippled foreign direct investment in the fin‑tech industry and negatively impacted millions of young Nigerians who earn a living from the sector. Many have found a way, however, to lawfully bypass these restrictions and continue business, effectively denying Nigeria the taxes and transaction fees that would otherwise come into the system,” the report noted.
In 2021, the federal government through the Central Bank of Nigeria (CBN) banned cryptocurrency transactions in the nation and also suspended Twitter operations for seven months.
