% 1.77
BTC Dominance:
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
$ 68.449
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

Nigerian Ban on Naira Trading May Backfire

Nigerian Crypto

Some Nigerian crypto aficionados believe that the government’s decision to stop naira trading on cryptocurrency exchanges will probably make things worse for the country’s unstable currency.

The executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Rume Ophi, said in an interview that the official Nigerian narrative that global cryptocurrency platforms helped to devalue the naira is unrealistic.

Ophi claimed that with a framework implemented by the Nigerian Securities and Exchange Commission (SEC) in 2022, Nigeria can efficiently control the cryptocurrency sector.

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The government shifted its emphasis to platforms offering cryptocurrencies due to the fast drop in the naira and the consequent almost three-decade-high inflation rate of 29.9%. These websites have gained notoriety for their trading and unofficial naira value establishment.

Associate lecturer at the University of East London, Iwa Salami, contended in a recent opinion post that cryptocurrency has been wrongly blamed for depreciating national currencies.

She advised Nigerian authorities to use a mixed regulation strategy rather than a total prohibition since, despite their links with drug trade and money laundering, crypto has never been directly linked to the devaluation of currencies.

Nigeria must have a balanced approach to control if the sector is to flourish without endangering financial and monetary stability. A stable financial system can effectively distribute resources and control financial hazards. The strategy has to guard investors and customers.”

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Salami underlined that instead of prohibition, Nigerian authorities might achieve their objectives by means of control. Authorities can demand cryptocurrency exchanges expose the identities of wallet holders linked to questionable activity by using the 2022 regulatory framework set by the Nigerian SEC, therefore balancing control and innovation.

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The associate professor claims that global acceptance of international standards for crypto assets, including recommendations of the Financial Stability Board, would offer a consistent answer to the issues expressed by Nigerian authorities and other authorities worldwide, fostering clarity and consistency in controlling crypto asset activities.

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