According to a recent survey by Chapter 54, an African tech advisory by Partech Ventures, Nigeria continues to have one of the highest rates of crypto adoption in the world with 1 out of 5 people holding cryptocurrencies.
According to a May 2023 survey, over 18% of Nigerian adults report that they own or have used cryptocurrencies, which represents 39 million people. pic.twitter.com/9BI5blrpcr
— BitKE (@BitcoinKE) May 25, 2023
The survey, whose goal was to shed light on the current state of cryptocurrency adoption in Nigeria, also determined that 9 out of 10 people (93%) know about cryptocurrency at least by name with only 7% of the population having never heard of it.
“With the rising popularity of crypto in Nigeria, there has been a lot of information and misinformation circulating in the media, making it difficult to discern the actual trends and patterns of crypto adoption in the country.”
Nigeria’s adoption rate of 18% is substantially greater than the global adoption average of 10%, with the West-African nation only bettered by South Africa in Africa.
Social media was found to be the main channel for people to gather information about cryptocurrencies with 76% of the population using it. Below is a breakdown of how people learn about crypto in Nigeria:
- Social Media (76%)
- Family and friends (48%)
- Blogs (15%)
- Radio, TV, press (13%)
- YouTube (5%)
According to Chapter54, the main motivation for cryptocurrency use in Nigeria is to generate income while the second motive is to hedge against Naira’s volatility (24%). Here is a breakdown of the key motivations for crypto use:
- Generating income (39%)
- Foreign exchange volatility (24%)
- Diversify my investments (20%)
- Anonymity (17%)
- Send/Receive money abroad (11%)
- Avoid banks (decentralized) (11%)
- Send/Receive money locally (10%)
- Other (9%)
Here are some interesting stats from the report:
- 70% of Nigerians have invested less than 50k naira ($108.34)
- 30% have invested over 50K Naira
The median salary in Lagos, Nigeria is estimated at around N161K ($348.46) a month, according to Paylab.com.
Based on the survey, Nigerian crypto-holders prefer traditional assets like Bitcoin, Ethereum & USDC while 10% own NFTs even though just 4% consider themselves NFT collectors.
When it comes to holding crypto:
- Crypto-users generally hold their money in Exchange platforms (c.49%) which corresponds to the main identified motive (income generation)
- 15% of them use hardware wallets (Ledger or others)
- Software wallets are used by 27%
- Mobile apps like Chipper are used by 26%
Security, availability of transactional services, and easiness to use are top-3 key features Nigerian crypto users look for in a wallet.
Finally, one third of the population (64%) stated that they know someone who has been a victim of a crypto fraud, as opposed to 36% who do not.
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