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Nigeria, the largest economy in Africa, has not been able to efficiently tackle its rising unemployment rate – a time bomb if not dealt with quickly. In 2020, the frontier market has seen an increase in its unemployment rate, due to an ever-growing dependent population, the reduction in total production of goods and services, and the unprecedented COVID-19 pandemic, which has had a negative impact on the economy and led to job loss for thousands of Nigerians.
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Data from the National Bureau of Statistics (NBS) revealed that:
- Nigeria’s unemployment rate in the second quarter of 2020 reached 27.1%, indicating that approximately 21,764,614 (21.7 million) Nigerians are unemployed.
- In addition, 13.9 million young Nigerians are unemployed.
- Young people between the ages of 15 and 24 represented the highest unemployment rate, 40.8%; followed by young people between 25 – 34 years old, 30.7%.
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Such insignificant economic data can be held back if Nigerian regulators and stakeholders tap into the potential inherent in cryptocurrencies to further bolster the development of Africa’s largest economy.
Cryptocurrencies can help address the many challenges faced in international trade by many Nigerians, who don’t have a bank account. With the help of blockchain technology, many unemployed Nigerians can use the tools behind cryptography and blockchain to generate income, as traditional jobs constantly become obsolete.
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Cryptocurrencies such as Bitcoin could also help the unemployed facilitate small-scale international trade. Bitcoin allows these parties to sell products in exchange for Bitcoin and boycott traditional e-commerce systems, which often involves setting up a merchant account with traditional banks, along with related charges.
Cryptos, once fully adopted, will have a considerable impact on Nigeria, increasing the financial inclusion of individuals and companies. In particular, by reducing fees and transaction times, cross-border payments can be improved. This is beneficial for remittance payments, peer-to-peer lending and international trade.
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Experts discuss the use of cryptocurrencies to reduce unemployment
In an exclusive interview with Nairametrics, Chike Okonkwo, Business Development Manager, OKEx, spoke about the role cryptocurrencies can play in providing income to a sizable number of Nigerian youth.
“Since the adoption of cryptocurrency in Africa, Nigeria has become a major hotspot in the African cryptocurrency space. The adoption of the blockchain / cryptocurrency by Nigerians has been able to give jobs to young Nigerians like me.
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“The industry will further reduce unemployment in Nigeria, but to achieve this – Blockchain and Crypto education must be a key goal because it is a young industry. I personally encourage many young people looking for a career path to explore the blockchain space. and crypto.
“We need people who understand business development, media, marketing, programming, crypto trading, legal compliance, design / graphics, etc. in the industry.
“Young Nigerians have built reliable platforms for buying and selling cryptocurrencies and there is more to come. I am a member of the Stakeholders in Blockchain Association (SiBAN), which aims to unite / self-regulate industry players, and Blockchain Nigeria User Group (BNUG), with the main goal of educating people about the industry. “
Charles Okaformbah, Blockchain Solutions Architect, in a note to Nairametrics, provided key insights into the job opportunities that cryptocurrencies can offer to Nigeria’s growing population.
“Aside from the trading activities carried out by Nigerians, DeFi products can be created with cryptocurrencies to help create companies that will employ more Nigerians.
“Trading with few funds may not yield much compared to the inflated cost of living, but long-term investments in solid crypto assets have proven to be revolutionary or have produced far more returns.
“Remittances can also be made with paid cryptocurrencies for international traders, who are currently limited by government monetary policies.
“There is also crypto-collateral. Aside from cryptography as an end product, employment can also be provided via technology for tech buffs / geeks, creating their services as crypto / blockchain solutions for organizations, developing crypto related products, providing smart contract audits , forensic audits of cryptocurrencies, project management and much more “.
Bottom line
Digital currencies or cryptocurrencies as singles will not have a global impact on the Nigerian unemployment index. However, Nigeria must start building native Blockchain infrastructure after the pandemic.
In this way, the central sovereignty of technology will originate and shift to cater to our unique Nigerian market niche. The domino effect between skilled, entrepreneurial and regular professional levels would be enormous.
Improved financial inclusion is the most significant and most developed benefit of cryptocurrencies for Nigerians.
