IMPACT OF CRYPTOCURRENCY ON NIGERIA ECONOMY

BY

OLUWALANA FAITH AYOMIKUN FPA/CS/20/2-0062

A PROJECT SUBMITTED IN FULFILLMENT OF THE REQUIREMENT FOR THE BASICS

OF RESEARCH METHODOLOGY IN SOCIAL AND MANAGEMENT SCIENCES

OF

DEPARTMENT OF COMPUTER SCIENCE

FEDERAL POLYTECHNIC ADO EKITI (SATALITE CAMPUS)

DECEMBER,2021

DEDICATION
This work is dedicated to the Almighty God my creator, our source of wisdom,
knowledge and understanding who have it possible for us to be able to carry out
this project study successfully.

INTRODUCTION
 According to Bartoletti, Carta, Cimoli, & Sala, (2017) the universal financial
system is absolutely embracing the current evolution from physical currency to
technology. However, there have been many attempts at producing a digital
currency during the 90s tech boom (Bech, 2017).
Bitcoin was introduced in early 2009 by a group of programmers under the alias
Satoshi Nakamoto.

REVIEW OF LITERATURE
1. CRYPTOCURRENCY AND NIGERIA ECONOMY
Cryptocurrency is described as a digital record keeping device that uses
balances to keep track of trading obligations, which is publicly known to all
traders. Some of the forms of crypto currencies include Ethereum, Bitcoin
etc. However, since the introduction of bitcoin in 2009, several private
cryptocurrencies have been introduced, but Bitcoin has been generally
adjudged as the successfully one. According to Gilbert & Loi (2018),
cryptocurrencies are mainly designed to function without independent
regulation and are protected from being exposed to government
authorities for control.

Advantages of Cryptocurrency
1. Protection from Inflation
2.Self- governed and management
3.Decentralized
4.Cost-effective mode of transaction
5.Secure and private
6.Easy transfer of funds

Disadvantages of Cryptocurrency
1. High volatility and potential for large losses
2. Black market activity
3. No refund
4. Unregulated and Unbacked, Cyber hacking.

List of banks in Nigeria that accept Cryptocurrency

1. Access Bank
2. Citibank
3. Diamond Bank
4. Fidelity Bank
5. First Bank of Nigeria
6. Keystone
7. Enterprise Bank
8. First Monument Bank
9. Guaranty Bank
10.Ecobank Nigeria

INTERPRETATION OF RESULT
The model tested the effect of cryptocurrency has on Nigeria
Economy. The result shows that cryptocurrency independently has a
positive effect on the Nigeria Economy as can be seen from coefficient;
Furthermore, the R-square, which is the coefficient of
determination showed the magnitude by variation caused on Nigeria
Economy by explanatory variable, Crypto currency to be about 51%.
This indicates that 52% variation in Nigeria Economy is attributed to a
unit change in Cryptocurrency, while the remaining 48% variation is
caused by other explanatory factors outside this model.
Thus, the result indicates that Crypto currency has a significant
effect on Nigeria Economy. Therefore, we reject the null hypothesis and
reject the alternate hypothesis.

CONCLUSION
Several suggestions have emerged from research concerning the
government’s response to legislating cryptocurrency ranging from the
creation of state-owned cryptocurrency to banning, the danger of most
of these recommendations would be future strive for dominance and
superiority among nations resulting from divergent views and
approaches towards its legislation. Considering this fact, the cost of
ignoring the usability of cryptocurrency outweighs the perceived risks of
not legislating it in the future, especially in developing countries like
Nigeria.
Therefore, it could be concluded that a significant number of people
are now fully persuaded that the digital currency is genuine and as
value. Though, digital currencies may be attractive to cyber criminals
and present a host of new challenges to law enforcement in Nigeria.