1. what are the worryinh feature of the nigerian economy? 2. Why have cryptocurrencies taken off in nigeria? 3. What lessons can other governments learn from the experience of nigeria in tryinh to curtail the use of cryptocurrencies? 4. What policies should rhe Nigerian government be following to restore its finances?

  

NIGERIANS GO FOR CRYPTOCURRENCIES Cryptocurrencies are often seen as an investment opportunity, particularly in countries susceptible to deprecating and unstable national currencies. Oil-rich Nigeria should be one of Africa's economic success stories. But the country of 200 million people has been through several years of financial woes that have touched every member of society. A falling currency, high inflation and political unrest have taken their toll, while the government of President Muhammadu Buhari has struggled to come to grips with the financial instability. The Central Bank of Nigeria devalued the currency, the naira, by 24% in 2020, sending shockwaves through the economy. A further devaluation of 10% could not be ruled out. The naira has depreciated against the US dollar 30% in the last five years. The collapse in global oil prices was a big factor. Oil represents 80% of Nigeria's exports and 50% of government revenues. The pandemic was also a factor. In countries with high levels of poverty and poor health systems, COVID-19 posed a serious risk due to the large numbers of people living in overcrowded conditions. In Lagos, the capital, most of the city's 20 million inhabitants live in slums. Unemployment during the years of recession was estimated to be 33% of all working-age people. Young people have been especially hard hit. Nigeria has a median age of just 18. Among the many young people out of work are those with educational qualifications who had hoped for good jobs but have found that the only work available is poorly paid, low-skilled work with no security. Among these disillusioned workers, who move from one low-paid job to another, the future looks bleak. It is in this environment that cryptocurrencies have gained a following. Cryptocurrencies such as bitcoin seem to offer opportunities of betterment, despite the risks. And Nigerians are gravitating towards them in growing numbers. Trading in cryptocurrencies has become easy with trading apps such as Paxful (https://paxful.com), the bitcoin trading platform. In 2020, 1.1 million cryptocurrency trades