Abstract
The rapid diffusion of crypto currency in Nigeria has attracted considerable attention from
academics, practitioners, and policymakers. This study investigates the determinants of
crypto-currency adoption, market growth, and price dynamics in Nigeria, with a particular focus
on financial inclusion, regulatory environment, technological advancement, investor sentiment,
and macroeconomic factors. The research objectives are (i) to assess the appeal and growth
trajectory of crypto-currencies in Nigeria; (ii) to identify the risk factors that shape their
evolution; and (iii) to derive policy-relevant insights for regulators and industry stakeholders. A
quantitative approach was employed using quarterly data spanning 2012-2023 (N?=?43). Five
hypotheses were formulated and tested using a battery of time-series techniques:
Granger-causality, unit-root tests, Johansen cointegration, and autoregressive distributed-lag
(ARDL) modelling. The proxies for the independent variables were: number of crypto users,
transaction volume, and number of exchanges (cryptocurrency adoption); number of regulatory
approvals, regulatory clarity, and regulatory support (regulatory environment); internet
penetration, mobile-phone adoption, and tech-startup count (technological advancement);
social-media mentions, sentiment analysis, and investor-confidence index (investor sentiment);
and GDP growth, inflation, and exchange rate (economic factors). Dependent variables included
percentage of the population with financial-service access, number of bank accounts,
mobile-money adoption (financial inclusion); market capitalization, trading volume, and new
listings (crypto-market growth); standard deviation of price returns and frequency of price
jumps (price volatility); and number of transactions and users (crypto demand). The empirical
findings reveal a complex interplay among the variables. Granger-causality tests indicate
bidirectional predictability betwe
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Questionaire
Section 1: Demographic Information (5 questions)
What is your age?
1. 18-24
2. 25-34
3. 35-44
4. 45-54
5. 55 and above
What is your occupation?
1. Student
2. Employed
3. Self-employed
4. Unemployed
5. Other (please specify)
What is your level of education?
1. Secondary school
2. Diploma/NCE
3. Bachelor's degree
4. Master's degree
5. PhD and above
How long have you been using cryptocurrency?
1. Less than 6 months
2. 6-12 months
3. 1-2 years
4. 2-5 years
5. More than 5 years
What is your primary source of income?
1. Salary
2. Business
3. Investments
4. Other (please specify)
Section 2: Understanding of Cryptocurrency Concepts (10 questions)
(Scale: 1 = Not familiar at all, 2 Slightly familiar, 3 = Not sure, 4 = Familiar, 5 = Very familiar)
Cryptocurrency definition
Blockchain technology
Cryptocurrency mining
Wallet and private key management
Cryptocurrency trading
Investment strategies
Market analysis
Security measures
Regulatory environment
Tax implications
Section 3: Appeal and Prevalence (10 questions)
(Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly agree)
Cryptocurrency offers a potential for high returns.
Cryptocurrency is a good store of value.
Cryptocurrency is a convenient means of payment.
Cryptocurrency is a popular investment option among friends and family.
I use cryptocurrency for speculative purposes.
I use cryptocurrency for investment purposes.
I use cryptocurrency for transactional purposes.
Cryptocurrency is more appealing than traditional investments.
Cryptocurrency is more accessible than traditional investments.
I prefer crypto currency over traditional currencies.
Section 4: Risks (15 questions)
(Scale: 1 = Not a concern at all, 2 = Slightly concerned, 3 = Neutral, 4 = Concerned, 5 = A major
concern)
Market volatility
Security risks (hacking, phishing, etc.)
Regulatory uncertainty
Changes in regulatory guidelines
Scams and fraud
Lack of investor protection
Market manipulation
Liquidity risks
Price volatility
Security of exchanges
Wallet security
Private key management
Phishing attacks
Investment scams
Other (please specify)
Section 5: Regulatory Environment (5 questions)
(Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly agree)
The current regulatory environment is clear and concise.
The regulatory environment is supportive of cryptocurrency use.
Regulatory uncertainty affects my use of cryptocurrency.
Changes in regulatory guidelines affect my investment decisions.
I believe the regulatory environment will improve in the future.
Section 6: Market Volatility and Security (10 questions)
(Scale: 1 = Not a concern at all, 2 = Slightly concerned, 3 = Neutral, 4 = Concerned, 5 = A major
concern)
Market volatility affects my investment decisions.
I am concerned about the security of my cryptocurrency holdings.
I take measures to secure my cryptocurrency holdings.
I am aware of the risks associated with market volatility.
I believe market volatility will decrease in the future.
I am concerned about cyber security risks.
I take measures to protect myself from cyber security risks.
I believe the risk of hacking is high.
I believe the risk of phishing is high.
I take measures to protect my private keys.
Section 7: Technological Advancement (5 questions)
(Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly agree)
I have access to reliable internet services.
I use my mobile phone for most of my daily transactions.
I am familiar with mobile payment apps (e.g. Paga, Paystack, etc.).
I know of at least one tech startup in Nigeria that offers innovative solutions.
I believe technology has improved my financial inclusion.
Section 8: Future Outlook (5 questions)
(Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly agree)
I believe cryptocurrency will become more mainstream in the future.
I believe cryptocurrency will increase in value in the future.
I plan to increase my use of cryptocurrency in the future.
I believe the regulatory environment will improve in the future.
I believe cryptocurrency will play a significant role in the future of finance.
