Web 3/Cryptocurrency in Nigeria has come under attack in the last three months, which has been ostracized by the Nigerian government and its agencies. This is contrary to the promises made by the President during his previous campaign. Much is still left unclear about the government's true motives.
Earlier this year, there were claims that certain entities were sabotaging the naira by inflating the dollar-naira exchange rate via crypto exchanges. This led to the probing and arrest of a Binance representative. The crypto exchange recently stated that the government was not acting in good faith and that bribes were being demanded by some unknown personnel claiming to work for the government.
The Nigerian government, through the Central Bank, ordered banks to stop facilitating crypto-related transactions via a memo, reinstating an already existing law that brought rise to the P2P market in Nigeria. Before the law, most Nigerians in Web 3 used direct deposit or withdrawal to buy and sell crypto, but since the law was enacted, people reverted to the ordinary and more secure way of transacting in cryptocurrency.
The rise of P2P trading in Nigeria has made crypto difficult to regulate. In hindsight, regulating the space when Web 3 literacy was low, and authorities had only to deal with crypto exchanges, would have been more effective. Attempting to do so now would be futile because it would force innovation that makes these transactions almost impossible to trace.
Eventually, the Nigerian government will likely ban cryptocurrency, but unfortunately, this ban will likely not be successful for several reasons. Firstly, the government lacks the technical know-how to trace crypto-related transactions, and the space is growing faster than the laws or policies being implemented.
Secondly, the government doesn't inspire confidence among many young Nigerians, who are willing to go against it. The Nigerian government is seen as corrupt, making anti-people laws and policies, which entraps many in poverty. Without the threat of violence, many people will oppose the government.
Thirdly, there are no viable alternatives. Web 3 is the means of livelihood for many young Nigerians like myself. I do not foresee a future where I stop using cryptocurrency if it becomes illegal in Nigeria. That's a threat to my life, and I am willing to stand my ground regardless of the consequences. I believe many young Nigerians feel the same.
I understand the security concerns many have about cryptocurrency. A few miscreants are using cryptocurrency to carry out fraud and fund terrorism. I personally do not have a problem with the government knowing what's happening on-chain and on cryptocurrency exchanges, but they refuse to relinquish the right and ownership I have over my funds to a government that has proven to be corrupt.
In theory, the government is using the instability of the naira as a smokescreen to control the space. By doing so, they monopolize the space and give it to their selected businesses and personnel. The same is happening in Web 3 on a grand scale, so I won't be surprised if this were the case.
In conclusion, the Nigerian government should become a player, just like the rest of us, in cryptocurrency. If they build trust and transparency, there is an enormous opportunity to empower many Nigerians and put the country at the forefront of Blockchain development.
