Former Microsoft Engineer Says Nigerian Expatriates Are Using Bitcoin to Circumvent Country’s Overvalued Exchange Rate

 

According to Lasebikan, the Central Bank of Nigeria (CBN)’s fixed exchange rate of $1:380 is robbing recipients 20-30% of their remittance value each time they retrieve funds. At the time of writing, the parallel exchange rate of one dollar to the Naira is 1:480, according to Abokifx.

Similarly, importers that are hamstrung by the country’s rigid foreign exchange regulations, are now resorting to bitcoin when making payments online or across borders. Speaking in an interview, Lasebikan says bitcoin has also given Nigerian residents an opportunity to pay for services or utilities that the CBN usually deems unnecessary. He says:

Another thing would be for people who want to have access to resources outside the country…You want to pay for Nexflix, Apple Music. All of the things the government is aggressively clamping down on.

The software engineer explains that Nigerian authorities had, prior to this year’s events like Endsars protests, “been oblivious to the immense potential of bitcoin.” During the lockdown period, cryptocurrency usage in Nigeria grew and the country is now ranked as one of the top cryptocurrency markets. It is events in the crypto world in the past twelve months that may have helped change the Nigerian government’s perception of cryptocurrencies.