Nigerian Government Moves to Outlaw Naira on Cryptocurrency Exchanges

In a bold move aimed at curbing dollar speculation and combatting exchange rate manipulation, the Federal Government of Nigeria plans to delist the Naira from all peer-to-peer cryptocurrency platforms. This development comes amidst the government’s ongoing efforts to regulate Nigeria’s estimated $57 billion cryptocurrency market.

During a recent meeting with representatives from Nigeria’s blockchain industry, Emomotimi Agama, the newly appointed Director-General of the Securities and Exchange Commission (SEC), revealed the government’s plan. The meeting, organized by the Nigerian Blockchain Industry Coordinating Committee, served as a platform to discuss the evolving regulatory landscape of the cryptocurrency sector.

Agama emphasized that the government is drafting new regulations to govern the cryptocurrency industry. One of the key measures proposed is the delisting of the Naira from peer-to-peer platforms, which are accused of manipulating the currency’s value and exchange rate.

The SEC DG urged cooperation from the local cryptocurrency community in implementing these regulations to prevent further manipulation of the Naira. This announcement comes just a week after the Central Bank of Nigeria instructed payment service banks to caution clients against transacting in cryptocurrencies.

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Several regional exchanges in Nigeria, including Bitbarter and OKX, have already suspended Naira services in support of the government’s efforts. Stakeholders in the Blockchain Technology Association of Nigeria have also taken similar actions.

The decision to outlaw the Naira on cryptocurrency exchanges reflects the government’s determination to address fraudulent activities and safeguard the integrity of the nation’s currency. The SEC DG called on cryptocurrency enthusiasts to “name and shame” those responsible for manipulating the Naira, reaffirming the government’s commitment to combatting financial malpractice.

In response to these developments, Dr. Babatunde Obrimah, Chairman of the Fintech Association of Nigeria, commended the SEC DG for taking bold actions and proposed a partnership with the ecosystem to clean up the virtual ecosystem.

Chukwuemeka Ezike, co-founder of Bitbarter.io, expressed readiness among ecosystem operators to collaborate with the government to address concerns about the Naira’s value. He emphasized the need for innovative solutions to support the industry’s growth while ensuring compliance with regulations.

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The government’s actions reflect broader concerns about the impact of cryptocurrency trading on the Naira’s stability and the economy. Recent reports indicate a significant increase in cryptocurrency transactions in Nigeria, prompting regulatory scrutiny.

As regulators seek to maintain integrity in the financial system, there are calls for collaboration between industry stakeholders and government agencies to promote responsible innovation and curb illicit activities in the cryptocurrency market. The outcome of these efforts will shape the future of cryptocurrency regulation in Nigeria and its impact on the country’s economic landscape.