A comprehensive global survey on cryptocurrencies and web3 conducted by Consensys with YouGov data provides deep insights into the adoption, perceptions, and outlook for crypto and web3 in Nigeria. The survey polled 1,001 Nigerian adults ages 18-65 online from April 26 to May 12, 2023. The sample was weighted to match Nigeria’s gender, age, and regional demographics.
The survey reveals significant adoption of cryptocurrencies in Nigeria, with 99% of respondents indicating they have heard of cryptocurrencies and understand what they are. This widespread familiarity and understanding of cryptocurrencies demonstrates that crypto awareness has permeated mainstream consciousness in Nigeria. Just 1% of respondents said they had never heard of cryptocurrencies.
When asked which specific cryptocurrencies they currently own or have purchased in the past, an overwhelming 76% of Nigerians who have bought crypto said they own or have owned Bitcoin. 50% reported owning Ethereum, while 45% said they own or have owned Binance Coin, and 37% own or have owned Dogecoin. Ownership spans the major cryptocurrencies, pointing to broad-based adoption.
The survey also probed Nigerians’ future intent and motivations for investing in cryptocurrencies. 57% said they would definitely invest in cryptocurrencies over the next 12 months, showing a strong desire to increase participation in the crypto ecosystem going forward. Just 2% said they are not willing to invest in cryptocurrencies at all, revealing minimal resistance to crypto.
When asked for the top reasons why they invest in cryptocurrencies, 19% of Nigerian crypto owners said they invest in diversifying their overall investment portfolio. This indicates they view cryptocurrency as a distinct asset class for spreading out risk. 14% said they invest in crypto to store value because the Nigerian Naira is too unstable. This points to cryptocurrencies being used as an inflation hedge and store of value amid currency devaluation concerns. 14% cited participating in the global financial system as a key reason for investing in crypto, highlighting crypto’s ability to provide accessibility and connectivity to global markets.
The survey also sought to understand Nigerians’ perceptions and attitudes related to cryptocurrencies and their outlook on the future of the industry. 58% of respondents associate cryptocurrencies with the future of money, while 48% link crypto to the future of digital ownership. This reveals optimism regarding the long-term trajectory and potential of cryptocurrencies to transform financial and ownership systems. Just 5% see crypto as a passing trend.
When asked if cryptocurrencies represent an environmentally friendly technology, 86% of Nigerians said yes, demonstrating the widespread alignment of crypto with green energy in Nigeria. 50% believe regulators should create crypto regulations that encourage participation while also protecting investors, evidencing a balanced perspective on crypto policy.
Regarding the major cryptocurrency bankruptcies in 2022, 89% of respondents believe these events impacted people’s trust in blockchain, crypto, and web3. However, 50% said the impact was moderate, suggesting the incidents did not drastically undermine Nigerians’ confidence. To rebuild trust, 29% believe improving security against fraud and hacks is most important, while 22% want increased transparency and accountability from crypto companies.
While the survey demonstrates Nigeria’s strong appetite for cryptocurrencies, some barriers to broader adoption were identified. 63% cited the market volatility and risk associated with crypto as a hurdle to entry. 52% pointed to scams and a lack of understanding of how the technology works as impediments. Still, the data indicates these concerns have yet to stall adoption significantly.
Several other notable findings provide insights into Nigeria’s relationship with traditional finance and views on the future of money:
- 56% said the current financial system works well but could be improved, indicating openness to new innovations rather than outright rejection of the status quo.
- 97% agreed financial independence is very important to them, suggesting crypto’s decentralization resonates in the Nigerian context.
- 67% said financial services like banking and investment are important for them, while only 55% believe they have adequate access to these services, highlighting gaps in traditional finance.
- 42% expressed trust in the financial institutions they can access, evidencing opportunities for new models like DeFi to provide alternatives.
- 94% expressed confidence that we have the technology to transform or rebuild the financial system. This technology optimism aligns with the embrace of crypto and web3 in Nigeria.
Future prospects of crypto and web3 in Nigeria
The Consensys report provides the most in-depth study to date on cryptocurrency adoption and perceptions of Africa’s largest economy. The findings are overwhelmingly positive. According to the report’s data, Nigeria exhibits high familiarity with cryptocurrencies, strong current adoption rates, and a promising outlook for the future. Nigerians are eager to gain exposure to cryptocurrencies as an investment diversifier, inflation hedge, and gateway to global financial markets.
While risks like volatility and scams give some investors pause, the survey shows most Nigerians believe the positives outweigh the negatives. There is clear openness to regulating the industry in a balanced way that foregrounds innovation. Overall, Nigeria appears primed for further exponential growth in cryptocurrency and web3 adoption should the conditions remain favorable. Regulators now face the responsibility of crafting policies that allow this momentum to continue while appropriately mitigating emerging risks.
You can read the full report here
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