The Nigerian recession is hoped to end by the end of the year according to the central bank. This state of economic volatility was confirmed by the bank, but not everyone was willing to except the optimistic predictions that it would be finished by the end of the year. With minimal growth in the hospitality and oil/commodities sector, it may take much longer to leave it. Bitcoin potential has been highlighted as a potential driver for growth as the freedom to make transactions across borders on demand will increase short term trade exponentially.
The Bitcoin decentralized nature and blockchain technology could be key to unlocking growth in Nigeria. Fuelling the ever expanding remittance and commodity industries, Bitcoin is ideal for business relying on international money transfer and remittance services. Considering current Forex controls and restrictions the central Nigerian bank has restricted man options of asset transfer which has been counter intuitive so far. With the aim of propping up the devaluating Naira, the moves have sadly just worsened the recession for many civilians and the whole economy.
Furthermore the investment industry is currently one of the worst hit by the recession and capital controls placed on foreign exchange. The limits have sadly negatively affected the capital intensive activity which makes a significant proportion of the GDP for Nigeria. Bitcoin is ideal to avoid hitting the limits placed by the central bank as there is no possible way of tracking what transactions you make.
To conclude Nigeria currently has reached an awkward economic state. Civilians and traders alike are tight on a budget and consumerism is at a low. Sadly these factors will only push the current state of recession further unless the central bank actually puts in place financial precautions to aid the growth of trade and Forex which are some of the country’s biggest GDP contributors.