High inflation rates, unemployment and corruption are some of the problems facing Nigeria, a country widely regarded as the Giant of Africa. With a population of over 170 million people, half of which are below 40 years of age, there are real problems for the Nigerian government.
There is also the issue of political instability in this beautiful nation during election periods. Could cryptocurrencies ease Nigeria out of her troubles? Let’s find out what the advent of digital currencies can do for the Nigerian economy.
The world Bank has reported that that there are no fewer than 2 billion unbanked people in the world, and over half of that number is from people living in the developing nations of the world, of which Nigeria is a part. For example, in Sub-Saharan countries, less than 15% of the adult population have access to banking services backed by premium financial institutions, which means the people are either unbanked, or under banked.
For these people it is difficult to carry out transactions with ease beyond the shores of their country. They rely on often overpriced third party agents to move money for them.
Cryptocurrency: A Way Out
With cryptocurrency systems implemented in Nigeria’s financial sector, millions of people will obtain access to much needed location-independent premium banking services, thus creating financial inclusion. When coupled with telecommunications and the power of the internet, this new banking system will penetrate the length and breadth of the country, and empower small and medium scale entrepreneurs with the tools they need to succeed in today’s digital age.
It is common knowledge that Nigerian business owners often find it difficult to obtain loans from traditional banking institutions to support their businesses. In a way much similar to what concepts like BitPesa is doing, loans can be approved using cryptocurrencies as payment medium, opening them up to a global outlook for commerce.
With the implementation of cryptocurrencies, business owners will also be able to send funds to clients abroad at a much cheaper rate than using third party money senders.
Although the problem of corruption in Nigeria is multi-faceted and dynamic, it is possible to stem the tide with economic freedom of the citizenry. With the decentralized nature of digital currencies, it is now possible for ordinary citizens to take their financial future into their own hands and create sustainable wealth for themselves and others. This wealth redistribution will galvanise growth and development of Nigeria.
How Smart Contracts can help
Successful implementation of smart contracts in the financial structure of the civil service workers’ salary payments, for example will allow for greater transparency and accountability in the remittances from government coffers.
It is possible that the remittances could be made public in the interest of trustworthy governance, and to break the cycle of corruption.
There are many other salient areas like the electioneering process, public institutions, etc where digital currencies could disrupt the status quo, and change things for the better, but this could be discussed more adequately in a full length at a later time.
These and many more areas outline how cryptocurrency implementation in the financial sector of Nigeria can help to curb corruption and foster progress and development in the most populous black nation on earth.