A lot of Nigerians do not use the traditional banks in their daily transactions due to the fear that banks charges are too high and they or someone they know have lost their deposits to failed banks, some are concerned about the numerous paperwork and long queues at the banks. A decentralized finance (DeFi) solution can present opportunities to attract and capture these ones.
The use of smart contracts cut off traditional financial middlemen who gain from the charges that customers complain about. Petty traders and SME's can easily access loans to support their businesses without having to meet too much conditions. This will help boost the economy as business will thrive and it will reduce the poverty level in the long run.
The traditional banks in Nigeria charge high fees and make trans-border transactions difficult especially for small businesses due to the forex policy of the country's central bank. Businesses are forced to buy forex from black marketers at high cost and then pay this into their domiciliary accounts. The banks will then charge exorbitant fees as transaction cost. Blockchain especially cryptocurrencies have come to the rescue in simplifying international trade transactions and reducing the cost of exchanging money to pay for goods.
It is also faster and efficient. As a result,small businesses can easily pay for goods and receive a substantial part of what is paid to them for the products they export,this means more money to small businesses and it also reduces the price of imported items thereby contributing to Nigeria's economics stability.
Nigeria is an agrarian country but the bane of the agricultural sector has been the lack of efficiency in the supply chain which in turn leads to spoilage hence lost to the farmers. Blockchain technology can change all of this, it will revolutionalize the supply chain from the former to the end user an align this process to make it transparent.
With this farmers can keep track on their customers as well as on their produce since most of the off takers buy this produce on credit. With the use of immutable record in applications the Farmer the seller and the end user can gain real time inside into the condition of the produce and the quantity available. The Farmer may even choose to cut off the middleman and sell directly to the end user using blockchain applications. These applications will help him get a wider customer base and get customer feedback in real time. This will help reduce damages boost agricultural production and show food security and economic growth.
Every establishment wants to verify the certificate of it's workforce, this is not only limited to them even schools do this too. Nigerian secondary schools higher institutions of learning professional bodies and examination bodies can store academic transcripts and certificates on a blockchain.
Blockchain can also help to decentralize educational platforms so that it is not limited to the four walls of institutionalized schools. All of this will help to efficiently verify the authenticity of credentials, simplify certificate verification and make more Nigerians access needed education so as to acquire relevance skills and certification. This will boost Nigeria's human capital development.
As a country, Nigeria cannot be left out of the numerous benefits that blockchain provides. This benefits outlined above are some of the things that can contribute to the Social and economic advancement of the country. All hands must be on Deck to promote this good innovation and ensure that it is used responsibly so that it will be widely adopted in every sector.
