Nigeria continues to welcome cryptocurrency businesses while navigating a high-stakes legal battle with Binance, the world’s largest crypto exchange. Authorities filed an $81.5 billion lawsuit against Binance in February 2025, alleging tax evasion, illegal operations, and contributing to the depreciation of the naira. The government claims the platform enabled $26 billion in untraceable capital flight and facilitated unauthorized currency trades that destabilized the national currency. Two Binance executives were detained, with one escaping custody and the other facing money laundering charges.
Despite this ongoing dispute, Nigerian officials emphasize their broader openness to crypto innovation. Information Minister Mohammed Idris clarified that most crypto businesses operate legally and are not under investigation, signaling a regulatory approach focused on compliance rather than prohibition. In December 2024, the Securities and Exchange Commission (SEC) overhauled crypto regulations, introducing stricter marketing rules and transaction taxes to enhance oversight. By September 2024, the SEC began approving licenses for local crypto exchanges, aiming to foster a safer and more transparent digital asset ecosystem.
Nigeria remains a global leader in crypto adoption, ranking second in Chainalysis’s 2024 Global Adoption Index. Between July 2023 and June 2024, Nigerians transacted $59 billion in cryptocurrencies, driven by demand for dollar alternatives amid the naira’s volatility. Peer-to-peer (P2P) platforms dominate the market, presenting challenges for regulators to monitor and tax transactions effectively.
The government’s dual strategy of enforcing penalties against non-compliant entities like Binance while supporting regulated operators reflects its effort to balance innovation with financial stability. Analysts suggest Nigeria’s stance could position it as a crypto hub in Africa if it successfully addresses regulatory enforcement gaps and capitalizes on its tech-savvy population.
Sources:
https://www.theafricareport.com/377463/nigeria-vs-binance-what-is-behind-the-high-stakes-crypto-showdown/
https://www.ainvest.com/news/nigeria-opens-doors-crypto-businesses-regulatory-overhaul-2503/
https://www.mariblock.com/binance-vs-nigeria-the-saga-continues-with-a-billion-dollar-lawsuit-2/
https://en.wikipedia.org/wiki/Telegram_(software)
https://www.theafricareport.com/360383/nigerias-crypto-comeback-sec-approves-local-exchanges-post-binance-ban/
