Foreign direct investment (FDI) in Nigeria dropped by 33% in 2022 due to a severe shortage of dollars, which discouraged crypto companies from expanding into the country, according to the National Bureau of Statistics. Despite the exponential growth in crypto adoption, FDI declined to $468 million from the previous year's $698 million. Nigeria has a high adoption rate of crypto, with more active adult crypto traders than most countries due to the constant devaluation of the naira.

However, the lack of use of crypto in day-to-day economic activities and the ban on financial institutions from servicing crypto exchanges are blamed for the low investment rate. Lagos State Governor, Babajide Sanwo-Olu, has proposed initiatives to encourage crypto adoption, including the establishment of a crypto-focused innovation hub and the provision of incentives for businesses that accept crypto payments.

(By AMAKA NWAOKOCHA)