Nigeria prided herself as the giant of Africa both in population of over 220 million people and largest economic state. Nigerian economy is very diverse and vast as it cut across industrial, commercial, educational, production, mining sectors etc which are robust and huge transactions are conducted daily internally and externally with foreign business partners and countries. Also, the business interaction between her and her trading partners keep growing.
Recently, with several governmental policies like redesigning of banknotes and cashless policies, this huge african best rated economy have transited from fiat based transaction towards digital economy where many online banking sectors are thriving with advanced technological capabilities which facilitates easy and faster transactions between business partners on wide range of commodities and services.
Despite this advancement and improvements, this "infant-like" Digital economy have been challenged on several ways. Lets explore these challenges and how crypto can solve these problem. Hence, promotes digital based econony in Nigeria.
ILLITERACY AND ENLIGHTENMENT
Digital economy requires technical skills to explore the several mode of operations and gadgets usage. Over 60% of Nigerians like people of other third nations lacks such skills and educational disadvantaged. Many does not have access to those gadgets and how they works. Limited technical knowledge and skills affect digital based economy negatively.
There are globally recognised business merchants whose business interests spanned across the nigerian shores that still afraid of digital based transaction. Their reason is nothing but fear of unknown as many scam cases have been witnessed on that sectors repeatedly. They still insisted on fiat based transaction and it affects their scope of business and nigerian economy at large.
Due to the incessant cases of scammed projects including fake debit alerts, fake invest promises, fake transactions etc involving online transactions where many people have lost their entire savings, livelihood and capital by simple but wrong acts like pressing buttons or exposing their security details like passwords, keys etc. As a precautionary measures, many does not engage in online transaction and will never accept it knowingly. Also, it is a source of worries and create unnecessary myths over digital based economy. To worsen this matter, it is now a dent before nigerians as many others externally stereotyped Nigerians as con artists or fraudsters without any just reason for that. Many tend to shield away from busines with nigerians as if all of them are dishonest people. This have affect the public image of Nigerians and her emerging digital economy very bad.
Many people need to be educated financially and such education and training will based on digital economy and cryptocurrencies. Road shows, seminars, talks, online reels and other educational programs should be encouraged and broadcasted to reach Nigerians as well as the adoption of crypto currencies to be understand its impacts, mode of operation and benefits of digital based economy and crypto currencies inclusive.
POOR FACILITIES AND SERVICES
Improved electronic gadgets and services are necessary tools for effective digital based economy. In Nigeria, many people does not have access to those gadgets and does not owe anyone. There are business outlets where those gadgets like smartphones, laptops, POS, etc can be purchased but very expensive. A good smart phone can cost $100 and above. What will they do to get that amount for such a phone? It took many sacrifices and plans to achieve a simple gadget that will be need for digital business.
There is very poor internet signal and connectivity despite being so costly. This poor services from the internet providers affect online transaction negatively. There are incessant cases of delayed and uncompleted transactions due to the internet is slow and poor. Many transactions failed and records can't be traced or resolved leading to the money lost. Some resolution took many business days to be rectified which is lost of useful days and efforts.
The service radius of these infrastructures and facilities are wide with many people to be attended. In the urban areas, the services might be favorable and many service points within a locality but in rural areas, the service are few and scanty located with widen radius. Thus, Many people within the radius needs the services which slow down the process and online transactions are affected.
Nigeria have great potentials to generate enough electric power for her industries and business environment. There is enough sunlight in the north, running waters in the center, good site for wind energy at the mountain ranges and large deposits of crude oil in the south but her citizens still live, stay and sleep in darkness. These gadgets and facilities needs electricity to be powered and usage. Phones, laptop, Point of sale(POS) and other electronic gadgets which nigerians struggled to be owed, still need to be charged to be utilized.
FINANCIAL BASED ECONOMY
The transaction records on digital economy can be accessed which promote the confidence and trust over the system by the people. Also, as buyers and sellers can track the transactions to ascertain its status can proved to the partners of their ability to access their fund at all time.
In Nigeria, there are limitations in technological advancements, skilled personnels and security which affects the digital economy and online transactions. Only crypto and its projects can solved these aforementioned challenges and help the ever evolving Digital based economy in Nigeria.
Crypto currency offers greater aids and its potentials can improves the digital based transaction in Nigeria. Also, Nigerian governments does not support crypto based economy and product but its potentials have been driving our economy. The adoption and promotion of Crypto and products in Nigeria are emerging and enhancing the digital based economy in many ways. These ways includes;
FAST AND FREE TRANSACTION
The transaction fee are low and its speed is unlimited and faster than the speed of light which have promote transaction digitally. Binance, globally known crypto exchange enjoys a strong presence in Nigeria because of the high influx of Nigerians especially the intelligent youth on their platform. On that platform, many nigerians are conducting many crypto based transactions whose fees are relatively low and its speed of transactions are superb. One of its kind which promotes digital based transaction in Nigeria.
In Hive, Many Nigerians are thriving and active. Whose participation are honest and conducts stress-less online business which are crypto empowered. Also, creation of wallets and participation on the ecosystem are free which have encourage digitally based economy unlike what the banks are doing with high prices.
DECENTRALIZED MEDIUM
There is no middleman or central body to oversee the crypto based transactions as nodes have the absolute right over their funds and decisions. If adopted, digital economy will be promoted within and outside her shores which are marred by the incessant governmental interferences. The government through their agents try to sniffed out the identities and details of their business transaction and their nature being exposed. But, in crypto currency, there is a secure, free and faster transaction digitally.
IMMUTABLE AND VERIFIABLE
Data on blockchain cannot be modified after be recorded publicly. These useful features can enhance digitally based economy in Nigeria as transaction records can not be manipulated and can be verifiably by all. These cases of stolen money and identities which are often the cases in Nigeria banking sector and transactions will be eliminated thereby improving trades.
Crypto based transactions offers a trustless process where transaction records and status are validated and recorded before the public eyes. Nefarious activities are avoided as those data are recorded on the blockchain.
The instances of hacking and scams can be curbed as the transactions are verifiable, validated and recorded publicly. With the aid of blockchain whose data are secured and immutable thereby promoting transparency and reliable platform for transaction unlike what traditional finance institution are doing over our money and assets.
CONCLUSION
As Nigerian economy is evolving both in capital and size, it needs to be strengthened and secured. Crypto based transaction offer a secure platform whose transactions will be faster and free and empowered by the cryptographic functions and means.
The input of crypto and its potential should be adopted and many people enlightened on its mode of function with prices for the gadgets reduced so that its transaction will be promoted and enhanced.
Government should soften their view over crypto and its services with great policies. It can be trade freely as its transaction are internet based thereby promoting a digital based business and transaction in Nigeria. Also, Permits should be granted to crypto mining firms as countries like venezuela etc have done so as to unlock its potentials improves the transactions digitally.
Crypto with its objectives have greater potentials promotes and ensure a safer and easy means of the online transactions and economy digitally which
Banks can utilizes as a means to enhance and modernizes their services and transform them as internet based. A good and validated transaction records powered by blockchain technology can expose fraud and wrong manipulation by dishonest people which will ensure a safer and reliable platform for effective digital economy. Also, the transactions should be fast as the speed of light which depends on the scale and nature.
Posted Using LeoFinance Alpha
