But, now the Nigeria will no longer get the taxes and many people will lose jobs there which means increase in the rate unemployment. And a lot of traders will now go for P2P exchanges, like Binance P2P which means the government is getting nothing. This is totally stupidity.
I'm sure they have an answer to this that will make you think they did the right decision.
The government is making this decision because they have basis that they think crypto is a threat to their country, probably because they are not yet ready adopting it as their regulation is still weak. When crypto is allowed, there's also a risk on it if it's not properly monitor, government does not only focus on taxes, they also focus on safety of their people or the government.