Key Takeaways
- Nigerian school accepts cryptocurrency payments
- Decision made following discussions with parents of students
- Nigeria among highest users of digital currencies
A report this week revealed that the New Oxford Science Academy, a secondary school based in Kano, Nigeria. Sabi’u Musa Haruna, the principal of the school explained that the decision to accept digital currencies was made in consensus with the parents of the students.
He further pointed out that other schools in Latin America and Tanzania were already accepting crypto payments and urged the Nigerian government to create a legal framework for cryptocurrencies.
In Nigeria, and many countries on the African continent, cryptocurrencies are growing in popularity year after year. According to a Statista study for the year 2020 , Nigeria is the country where cryptocurrencies are used the most in the world . Over $400 million was converted into crypto assets in Nigeria last year.
"Almost a third of Nigerians surveyed online said they owned or had used cryptocurrency in 2020, the highest rate of the 74 countries surveyed," says Statista.
The rise of digital currencies is mainly due to the galloping inflation of the naira , the national currency of Nigeria. In 2021, the average naira inflation rate is 15.97%, Statista shows . Last February, the rate briefly exceeded 17%.
In many countries affected by an economic crisis, cryptocurrencies have emerged as serious alternatives to fiat currencies. The situation is similar in Venezuela or South Sudan.
Faced with the scale of the phenomenon, the Central Bank of Nigeria ordered banking institutions to close the accounts of clients who invest in cryptocurrencies in February. Weeks later, the Central Bank backtracked while warning Nigerians about digital currency volatility. The warning has obviously not marred the enthusiasm of the population for cryptocurrencies.
Do you think this development will spur crypto adoption in Nigeria?
