Crypto Foreign Investment in Nigeria Hits Record Low

Foreign direct investment (FDI) in Nigeria fell by 33% in 2022 due to a shortage of dollars, discouraging crypto companies from expanding into the country.

Despite the exponential growth in crypto adoption, Nigeria still needs to overcome a foreign investment problem.

FDI in Nigeria dropped to $468 million in 2022 from $698 million the previous year.

has decreased by approximately 90% since its peak of $4.7 billion in 2008.

Nigeria ranks eighth in crypto adoption and usage rate among 154 countries included in Chainalysis’ 2020 Cryptocurrency Geography Report.

The lack of use of crypto in day-to-day economic activities and the ban on financial institutions from servicing crypto exchanges are to be blamed for the low investment rate.

Lagos State Governor, Babajide Sanwo-Olu, has proposed initiatives such as creating a dedicated sandbox regulatory framework for cryptocurrency, establishing a crypto-focused innovation hub,

and providing incentives for businesses that accept crypto payments to attract foreign investors to the tech and crypto sectors.