A new report has concluded that restrictions on cryptocurrency trading, as well as the banning of Twitter by Nigerian authorities, may have “crippled foreign direct investment in the fintech industry.”
Foreign Direct Investment ‘Crippled’
A new report has found that restrictions imposed by Nigerian authorities on crypto trading may have contributed to the reduced foreign direct investment that goes to the fintech industry. The same restrictions, as well as the banning of Twitter, have also adversely affected young Nigerians who were earning money via crypto trading.
The report, which is titled Africa’s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities, was jointly published by the secretaries-general of the Organisation for Economic Co‑operation and Development (OECD) and the United Nations (UN).
“The restrictions on cryptocurrency transactions and the outright ban of Twitter in Nigeria have crippled foreign direct investment in the fin‑tech industry and negatively impacted millions of young Nigerians who earn a living from the sector,” the report concluded.
Nigeria Denied Taxes
However, an excerpt from the report published by Business Insider Africa suggested some Nigerian youths may have found ways to “lawfully bypass these restrictions and continue the business.” This fact is also backed by a Bitcoin.com News report which stated that peer-to-peer crypto trading in Nigeria had surged shortly after the central bank asked financial institutions to stop facilitating crypto-related transactions.
By switching to alternative yet legal ways of transacting, the report opined that traders were “effectively denying Nigeria the taxes and transaction fees that would otherwise come into the system.”
Tags in this story
Africa, Central Bank of Nigeria, Cryptocurrency, foreign direct investment, Nigeria, Nigeria fintechs, OECD, p2p, peer-to-peer trade, Taxes, Twitter ban, un
What are your thoughts on this story? Tell us what you think in the comments section below.
Terence Zimwara
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
