How To Make Money In Nigeria With Bitcoin Mining

Over the years, cryptocurrency has continued to grow in popularity and has proved to have a lot of uses. Not only can you use crypto to conduct transactions and store wealth, but you can also make money with it. You might be wondering how; by mining it, of course!

Mining Bitcoin is one of the most popular ways to make money, and Nigerians are not left out of it. Although mining Bitcoin in Nigeria can be a lot harder than mining it in developed countries, that does not make it impossible.

Keep reading to learn more about Bitcoin mining; how it works, the equipment you need, some limitations you might encounter while mining in Nigeria, how much you can earn and more.

How Does Bitcoin Mining Work?

For a Bitcoin miner to successfully add a block, they must compete to solve complex math problems requiring expensive computers and large amounts of electricity. 

To complete the mining process, miners must arrive at the correct or closest answer to the question. Guessing the valid number (hash) is known as Proof of Work (PoW). 

Miners guess the target hash by randomly making as many guesses as quickly as possible, which requires significant computing power. The difficulty increases as more miners join the network every 2, 016 blocks or two weeks on average.

As of block 885, 490, Bitcoin mining difficulty is at 110.57T.

Application-specific integrated circuits, which can cost as much as $10,000, are needed for computer hardware. These circuits consume vast amounts of electricity, which has been criticised by environmental groups. Another downside is that they limit Bitcoin miners’ profits.

3 Things You Need To Mine Bitcoin

1. A Crypto Wallet:

A cryptocurrency wallet is a digital wallet used to store and receive crypto and make transactions. To get started with Bitcoin mining, you need to own a crypto wallet because this is where you are going to store the Bitcoins you earn from mining. 

2. Software For Bitcoin Mining:

Mining software is another essential tool for mining Bitcoin successfully, and the reason is pretty apparent. Once the software is installed, you can mine Bitcoins using the necessary hardware.

There are various mining software providers; you do not have to pay for most of them as they are free to install on your Apple MAC and Windows computers.

3. A Computer:

Of course, you cannot mine Bitcoin without a computer, but not just any random computer (I guess the Tech bros with their MacBooks don’t win this round); to mine Bitcoin, you will need a potent computer that consumes a lot of electricity. These types of computers are usually very expensive, costing about $10,000 or even more.

Limitations of Mining Bitcoin In Nigeria

Here are some of the limitations of mining Bitcoin in Nigeria.

1. Expensive Equipment:

Although Bitcoin mining software is usually free, hardware such as computers typically costs a lot of money. As mentioned earlier, it could cost anywhere from $10,000 to more. Because the price is in US Dollars, we must consider the exchange rate between Naira and the Dollar. The current exchange rate is 1,500 Naira for 1 US Dollar, meaning the mining computer costs about 150 million Naira or more.

2. Crypto Regulation:

As we all know, in February 2021, the Central Bank of Nigeria (CBN) restricted cryptocurrency. This restriction affects crypto transactions and mining.

3. The volatility of Bitcoin:

One of crypto’s notable features is its volatility. This means that the price of crypto is unstable and tends to rise and fall according to the market. With Bitcoin mining, because of its price volatility, the Bitcoin you earn might even come out less than what it costs to get your equipment and actually mine it.

4. Unreliable and Expensive Electricity:

The unreliable power supply is probably the biggest issue on this list. The ASIC miners require a constant, stable power supply to keep solving the mining puzzles 24/7. However, Nigeria’s electricity grid experiences frequent outages, which makes mining much less efficient.

On the other hand, electricity costs have risen exponentially in recent years, with the tariff currently sitting at around 209 Naira per kWh for Band A users.

Frequently Asked Questions (FAQs) About How to Make Money in Nigeria with Bitcoin Mining

How Long Does It Take To Mine Bitcoin?

With the best hardware and software equipment, you can mine Bitcoin in about 10 minutes. However, we must admit that not everyone can afford such top-notch equipment because of its high price.

However, it should take about 30 days to mine Bitcoin for lower-quality but durable equipment.

How Much Can I Earn Mining Bitcoin?

After successfully mining Bitcoin, which requires adding a block to the blockchain, you earn a reward of 6.25 Bitcoins. However, the reward is halved every four years or after every 210,000 blocks.

Can I mine Bitcoin with my phone?

Technically, yes. However, in the real sense of mining, phones do not have the high computational power that ASIC miners have; therefore, not only would you waste time and energy, but it would not be very profitable. 

Be extremely careful of any app or software that promises high returns on Bitcoin mining on your phone. They’re most likely a scam, and you’ll not only not make anything but also rack up an electricity bill and deteriorate your phone’s health.

Can a Normal Person Mine Bitcoin?

Well, yes, a normal person can mine Bitcoin — but would it be worth it? Probably not. It is not as profitable as it once was, and without the right tools, you’ll be counting more losses than gains. Electricity will go up, and the hardware to profitably mine is also expensive. Plus, you stand a better chance of making a profit when you join a mining pool instead of solo mining.

What coin is the most profitable to mine?

As of 2025, several cryptocurrencies are profitable to mine. Some are Bitcoin, Ethereum Classic, and Monero. To calculate a coin’s profitability, you can use tools like What to Mine.