The main articles are:
ECOWAS membership
The Economic Community of West African States (ECOWAS) is a regional organization established in 1975 to strengthen economic cooperation between West African countries .
GDP
2022
Nigeria's share of global PPP GDP 0.79%
Main article: World Economy
GDP size forecast - $0.51 trillion
2021: GDP size - $0.48 trillion
2018: GDP - $2050 per person
National debt
2023: State debt - 38% of GDP
2017: Low public debt - 22% of GDP
Currencies: naira and cryptocurrencies
2024
Traders in neighboring countries began to refuse to accept naira due to its rapid depreciation
Until March 2024, Naira governed the sub-region as the dominant currency adopted as a means of exchanging traders across borders due to the high volume of trade between these countries and Nigeria. But by early April, the naira had reached a point of no return. Traders on both sides of the Nigerian border now prefer either the CFA or the non-French-speaking national currency.
Border markets in Benin and Nigeria have shown that most exchange offices or currency exchange offices do not even display the Nigerian currency. Even carriers of small-tonnage lots with a short delivery arm refuse to accept payment in naira, saying that by the time they return to convert naira into CFA, they will have lost some of their revenue. Consequently, they said it was safer to store CFA.
Until now, naira has been accepted on the west coast, up to Kot-d and Senegal. Traders spent naira freely in many West African countries. Nigerian currency was freely converted in the Republic of Benin, Togo, Ghana, Senegal and Kot-d. Now naira is not accepted in these countries.
Government request to Binance to compensate the country for $10 billion in losses from crypto exchange operations
Nigeria wants $10bn from cryptocurrency exchange Binance as a fee for alleged losses caused to the government by its operations.
"Huge losses from their operations have been recorded and the government is asking them for little money. They really destroyed our economy in a very short time, 'the president's information and strategy adviser said in early March 2024.
Crypto traders used Binance to manipulate Nigeria's currency, undermining the central bank, which he said is' the only body that can fix exchange rates in the country ', according to his adviser.
Law enforcement agencies are investigating. The Central Bank said that in 2023, $26 billion was transferred from unidentified sources to Binance in Nigeria, and some aspects of cryptocurrency transactions "are related to illegal flows."
Detention of two heads of Binance crypto exchange for doing business without registration
As local media reported at the end of February 2024, Binance employees were detained in Abuja, a day after they flew to the country to negotiate with the Nigerian authorities.
Binance executives reportedly met with senior cybersecurity officials and other investigators on February 26 afternoon. Authorities have asked for data relating to transactions involving Nigerian naira on the Binance platform over the past seven years. In addition, they demanded that some data relating to Nigeria be deleted from the Binance platform.
It is known that managers of the crypto exchange refused to comply with the requirements put forward by the Nigerian government. As a result, the negotiators were accused of managing billions of business without the necessary registration and documentation. The court issued a warrant for their detention for at least 12 days. The names of the managers are not disclosed, it is known that one representative of the crypto exchange is a US citizen, the other is Britain.
Blocking Binance and other cryptocurrency exchanges as naira weakens
In early 2024, the Nigerian government blocked the online platforms of Binance and other crypto firms to stop "continuous manipulation of the forex market and illegal movement of funds." The authorities believe that cryptocurrencies are used for criminal activities, and this significantly weakens the naira. In addition to Binance, Forextime, Octafx, Crypto, FXTM, Coinbase, Kraken were blocked.
2023
Lifting the ban on cryptocurrency transactions
At its disposal, the Central Bank of Nigeria (CBN) in December 2023 announced the lifting of the ban on cryptocurrency transactions introduced in February 2021, citing the need for global regulation of such activities. Previously, banks and financial institutions were prohibited from participating in transactions with crypto assets or facilitating them. The reason is quite transparent - the risks of money laundering and terrorist financing.
Following this ban, the Securities and Exchange Commission of Nigeria (SEC) issued regulations for digital assets in May 2023. The country's leadership tried to find a balanced approach between a complete ban on crypto assets and their unregulated use.
Nigeria's new Central Bank Ordinance of December 22, 2023 highlights the importance of regulating virtual asset service providers (VASPs) covering cryptocurrencies and crypto assets in line with global trends. The guide outlines the procedures under which banks and financial institutions can open accounts, provide current accounts and settlement services, and act as service providers for companies working with crypto assets.
To participate in the cryptocurrency business, VASPs must obtain a license from the Nigerian Securities and Exchange Commission. Representatives of the Central Bank of Nigeria clarified that, starting from the date of entry into force of this Decree, financial institutions should not open or allow transactions on accounts for businesses with virtual/digital assets if they do not meet the requirements of the Decree.
Nevertheless, the Central Bank of Nigeria retains a ban on the banks themselves from trading, storing or conducting transactions with cryptocurrencies. Despite this restriction, Nigeria's youth continue to master cryptocurrencies using P2P trading on crypto exchanges.
Regulation of crypto assets in Nigeria is introduced after an extremely unsuccessful experiment with the introduction of digital naira and a significant reduction in the amount of cash in circulation. The unprofessional actions of the former head of the Central Bank of Nigeria pushed a significant part of the population to use the USDT as the main means of payment. Over the three years of the experiment on the introduction of digital naira and the ban on the circulation of banknotes with large denominations, only 4% of the population was motivated to use the digital currency of the Central Bank of Nigeria.
Growth in cryptocurrency transactions by 9% to $56.7 billion per year
Cryptocurrency transactions in Nigeria rose 9% year-on-year to reach $56.7 billion between July 2022 and June 2023, according to a September report by Chainalysis, a New York-based blockchain research firm.
Bitcoin in Nigeria costs 60% more than in the world
At the end of January 2023, it became known that the cost of bitcoin on the popular Nigeria NairaEX exchange in terms of local currency jumped to $38,935, which is 64% more than in the rest of the world. The discrepancy is due to the limit imposed by the Central Bank of Nigeria on withdrawals from ATMs. More here.
Inflation
2024: Inflation rises to a record 34.19%
The inflation rate in June 2024 in Nigeria rose to 34.19% and broke the annual record.
Food inflation was the highest on record at 40.89%. The growth rate of prices for goods and services in the country continues to grow.
2022: Inflation in November - 21.1%
Power
2024: About 20% of the country's power plant gas is supplied by Britain's Accugas
As of 2024, British Savannah Energy's gas processing and distribution subsidiary Accugas Limited supplies about a fifth of the gas used by Nigeria's power plants.
2020: Very low energy consumption per capita
and
2019: Electrification rate 62%
Gas Production and Export
2022: LNG exports
2021: 8th in the world in gas exports
Algeria and Nigeria are the largest exporters of natural gas on the African continent in 2021. Each of these countries in 2020 supplied abroad from 35 to 40 billion cubic meters of blue fuel (7th and 8th place in the world, respectively).
In 2021, these countries were the only two African gas suppliers to the European Union, accounting for 17% and 4% of EU natural gas imports, respectively.
From 2027, the NIGAL gas pipeline is expected to transport natural gas from Nigeria (today it is transported mainly by sea), but the construction of this gas pipeline for April 2022 has not yet begun.
2018:3% of global natural gas reserves
Oil production
Agriculture
2024: Fifth in the world for cocoa beans
Food industry
Trade
2023:23% of wheat supplies come from Russia and Ukraine
2018
Oil and petroleum products are the most valuable commodity exported
India is the main trading partner
Tourism
R&D
2020: R&D spending - $1.4 billion
Communication
Main Article: Communications (Nigeria Market)
IT market
2022: More than 200 start-ups
The richest entrepreneurs
Incomes of the population
2023: Minimum wage - $68
Consumption
2023: Fish consumption is higher than meat consumption
2019: Average rice consumption: 39.7 kg per person per year
2018
Vegetable consumption - 75 kg per capita
The minimum age to purchase alcoholic beverages is 18 years
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