Bitcoin Premium is over 60 % in Nigeria when demanding is growing

Bitcoin Premium is over 60 % in Nigeria when demanding is growing

The price for Bitcoin (BTC) in Nigeria has increased significantly beyond the global market evaluation in view of the growing demand for the asset among the citizens of the West African country.

At the time of writing, Btc Handel at 17.5 million Naira (approx. 38.005 $) on the leading Nigerian cryptocurrency exchange Nairaex. This means that Nigerians have to pay a surcharge of 60 % on the current global BTC price of $ 23,200.

Why is Bitcoin 60 % premium in Nigeria?

Development is due to the fact that the demand for the leading digital asset in Nigeria has continued to increase, since the government has decided to limit cash withdrawals to banks and ATMs in order to achieve a cashless economy.

In December, the Nigerian central bank set individuals and companies a weekly limit of 100,000 Naira ($ 217) or 500,000 Naira (USD 1,085). The bank added that withdrawal over this limit would result in processing fees of 5 % for individuals and 10 % for companies.

At the same time, the regulatory authority stated that it determined the maximum cash withdrawal per week via ATMs on $ 100,000 Naira ($ 217), subject to maximum cash withdrawal of $ 20,000 ($ 43) per day. The guidelines came into force on January 9, 2023

The announcement of the withdrawal limit was made before Nigeria redesigned its currency to combat counterfeits, prevent illegal financial transactions and to promote a cashless economy by reducing the number of new banknotes that can be removed and the number of dirty banknotes circulating in business.

not the first time

In the meantime, this is not the first time that Bitcoin is acted with a serve in Nigeria. At the beginning of 2021, when the central bank prohibited financial institutions to provide services for cryptocurrency exchanges, BTC was traded with a surcharge of 36 %.

According to the Nigerian government's step to achieve a cashless economy and thus restricting the availability of cash, the interest of the Nigerians in BTC has increased in recent months.

According to data from the analysis platform Google Trends, investors in Nigeria are more interested in buying Bitcoin as investors in the USA.

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