well, honestly, I also don't quite understand why the Nigerian government is doing that. But probably in the end they will take back what they are doing just like what Russia did before they also did something different with Bitcoin but over time they also took back what they did.
That's why today, Russia is one of the prominent countries that fully recognizes bitcoin and other cryptocurrencies as having great market potential.

Just for some clarification, contrary to your assumption Nigeria is definitely a big economic country, it's the biggest on the Africa continent (do some google search and you'll find out). Yes the country is populated and we're fighting corruption which is our biggest challenge still the country hasn't banned Bitcoin. This is a misinformation that has been spreading around. The Central Bank of Nigeria (CBN) governor (former governors as he has been suspended) only banned banks from trading or participating in the cryptocurency market. Bitcoin and cryptocurency aren't legal in the country but it isn't illegal as well although ot hasn't been accepted as a legal tender which means you  can't use it to pay for goods and services but that doesn't mean they aren't been used.

Recently the government passed a bill for taxation of Bitcoin and it could cover other cryptocurrency as well. The government aren't fully antibitcoin but they aren't showing any green light towards Bitcoin as well like it would be legalized in the country anytime soon. There's a large audience of Bitcoin and cryrpo users in the country and this is mostly the youth since the youths are looking for alternative means to generate incomes as the government has failed in that aspect. The overpopulation is too overwhelming to the government as they barely know what they're doing and aren't doing anything to solved the problem.

The Nigerian government's stance on cryptocurrency has been met with mixed reactions. Because some see it as a necessary measure to protect them from potential financial risks and fraudulent activity. The growing digital currency has boosted initiative among the Nigerian community. The crypto industry has demonstrated significant potential for financial inclusion, remittances and job creation. This has turned out to be a promising avenue for Nigeria's growing technology sector. As the global crypto market continues to develop, Nigeria may reconsider its ban.

Expect that since not everyone in that country appreciate the existence bitcoin since some of them maybe see bitcoin as illegal material used by scammers since they see that from multiple activities they see. And some other dislike it because they have know its potential and their earnings might get stop if government continue to restrict it to their country. Hopefully they get the positive side and see the negative one as common incident which easily to be corrected.

The population of Nigeria is probably interested in various earnings in cryptocurrency due to the low standard of living and the depreciation of the local currency. But I think that they are not interested in trading that much. They want to earn income from various bounties, retrodrops or sector Play to earn.

Remember how in 2021 the game Axie Infinity was so popular in the Philippines. Ordinary players from poor areas earned SLP tokens, which were then converted into real money. I still don't understand why it didn't spread to Nigeria as well. After all, everything was necessary for this.

Words across the streets lays emphasis on the current administration being supportive of the crypto technology innovation and moves are underway to formulate policies that can provide for friendly environment for crypto market in the current while the government gain through taxation  and if this is true as they say then economically the country would be one of the leading hub for crypto enthusiasts in Africa cause with the current ban Nigerians still fine-tune means of escape to use bitcoin then imagine when it would be given a legal backing.

you are wrong, the level of population density greatly affects the available jobs especially if the country has citizens who are the majority of productive age ^{(currently Nigeria has a population of more than 200 million people)} but there are quite a lot of good things about population density that occur such as competition is getting tougher and business ideas are popping up, government intervention is actually very much needed to eradicate the lack of jobs and on this side, i am quite surprised by the government's rejection of cryptocurrency instead of using it to help citizens and reduce unemployment rates.

based on a survey that i read, currently 99% of citizens are horrified to know cryptocurrency, that is truly an extraordinary result and it is not impossible that in the future Nigeria will become a country on the African continent that has the largest crypto investors ^{(however the rules set by the government are never absolute)}

Binance is still in Nigeria crypto space. The government only disabled some accounts and nothing more to that except politics. So at the moment binance is still doing business in Nigeria. Moreover, talking about how to access bitcoin in Nigeria, apart from binance there are other exchanges that are doing business in Nigeria, Nigeria has a very large crypto community and so exchanges have more market to cover in Nigeria.

Beside banned Bitcoin or cryptocurrency as payment currencies why not with Nigeria government looking for tax from Bitcoin transaction in their country? almost one years, Indonesian have adopted BITCOIN tax payment each time transaction with local exchange market, I think government of Nigeria can adopt it without have to banned Bitcoin in their country although with small tax under 0,1% based in my country rule right now. Due Nigeria have been popular with Bitcoin and there are many new comer actually in this forum come from Nigerian, several years later Nigerian government will get beneficial by allowing Bitcoin as payment currency or adopt only as investment assets.

Warning for Nigerian, you should give option for your government about Bitcoin beneficial effect trough tax each transaction kinds based on in my country have to pay taxes every buy and sell coins in local currency exchange.

The eNaira has little or no effect on the acceptance of cryptocurrency in the country. Taking myself as an example, I only do hear about the eNaira on the media and I have not interacted or used it in anyway. The Nigerian government issued CBDC has failed woefully, though I heard they are trying very hard to revive it back to life.

What brought about the ban was when the citizens rose against a now disbanded branch of the police force called SARS (Special Anti Robbery Squad) that was continuously harassing and killing young Nigerians. Nigerians staged a nation wide protest called ENDSARS that brought the country to it knees, and many lives and properties worth billions of naira were lost as a result. The protest was supported by Nigerians both home and abroad through donations in the form of cash and cryptocurrency. After the protest the government decided to go after the ENDSARS sponsors by freezing bank accounts associated with crypto-related activities.