Click Here 147. Mic Drop: The problem with the Nigerian economy has nothing to do with crypto
Jul 12, 2024
Exploring the Nigerian economy beyond crypto, experts analyze economic mismanagement issues. Insights on complex economy from Feiyi Fawahimni. Impact of policy, oil prices, inflation on Nigeria. Nigerians use crypto to circumvent govt controls. Nigeria shifts to market-driven exchange rate, leading to increased crypto use.
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Nigeria's Complexity and Economic Issues
- Nigeria is extraordinarily complex politically and culturally, which complicates understanding its economy.
- The economic issues come from decades of poor policies, not from ethnic or linguistic diversity.
Oil Crash Sparks Economic Crisis
- Nigeria's oil dependence led to spending based on high oil prices, which crashed in 2014.
- This crash plunged Nigeria into a severe economic crisis with rising debt and deficits.
Command Economy Fuels Crypto Rise
- President Buhari adopted command economy policies focusing on currency control and foreign exchange hoarding.
- This caused shortages and led Nigerians to seek alternatives like cryptocurrency for economic survival.