A new report, partly approved by the United Nations (UN) has stated that restrictions on cryptocurrency transactions and the ban on Twitter in Nigeria crippled foreign direct investment in the fintech industry and adversely impacted millions of young Nigerians earning a living from the sector.
According to the report, young people engage in jobs in the tech sector to survive but this can be adversely affected by varying government policies.
Nigeria is, by far, the leading country when it comes to bitcoin peer-to-peer trades on the continent even though the authorities in Nigeria, including the Central bank of Nigeria (CBN), have adopted a hostile posture toward crypto.
In the report, seen by Nigeria’s Punch publication, young people are especially dependent on opportunities arising from the tech sector which it points out include:
Trading digital currencies
Operating in social media marketplaces
According to the report:
“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 report is said to single out the fact that:
“The restrictions on cryptocurrency transactions and the outright ban of Twitter in Nigeria for crippling foreign direct investment in the fintech industry negatively impacted millions of young Nigerians who earn a living from the sector.”
However, ‘many have found a way, 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, titled ‘Africa’s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities’ was published in collaboration with the Organisation for Economic Co‑operation and Development (OECD), the United Nations (UN), and the African Development Bank (ADB).