Nigeria continues to embrace cryptocurrency innovation despite its escalating legal dispute with Binance, affirming its commitment to fostering a regulated yet progressive digital asset ecosystem. The Central Bank of Nigeria reversed its 2021 crypto ban in late 2023, enabling banks to legally serve crypto businesses and accelerating blockchain integration efforts. This shift has spurred partnerships like the Nigeria Inter-Bank Settlement System’s collaboration with Zone’s blockchain network to modernize interbank payment infrastructure through decentralized systems.
The government unveiled its National Blockchain Policy in 2023, followed by plans to launch Nigerium, a sovereign blockchain designed to enhance data security and sovereignty. The Securities and Exchange Commission introduced comprehensive crypto regulations aimed at legitimizing digital asset trading while addressing risks like tax evasion. These reforms align with Nigeria’s $1.7 billion crypto transaction volume between mid-2023 and mid-2024, driven largely by small-scale retail users.
While advancing these initiatives, Nigerian authorities have intensified scrutiny of unlicensed platforms. A high-profile lawsuit targets Binance for $81.5 billion in alleged economic damages and unpaid taxes from 2022-2023. The government accuses the exchange of facilitating unregistered naira-dollar trades that weakened the local currency and enabled capital flight. Binance disputes these claims, countering that Nigerian lawmakers solicited $150 million in bribes during negotiations—an allegation officials deny. The exchange exited the Nigerian market in March 2024 after executives faced detention and separate money laundering charges.
Despite the standoff, Nigeria maintains 85% of crypto transactions under $1 million, reflecting grassroots adoption. Financial analysts note the contradiction between strict enforcement against Binance and broader support for blockchain growth, suggesting Nigeria seeks to balance innovation with economic safeguards. Officials confirm ongoing dialogue with compliant crypto firms to expand regulated services, including proposed Bitcoin reserves as hedge assets. As Africa’s largest crypto economy processes $59 billion in annual digital transactions, policymakers emphasize that targeted enforcement aims to stabilize markets without stifling technological progress.
Sources:
Nigeria’s Crypto Landscape is Transforming through Fintech Growth
https://www.theafricareport.com/377463/nigeria-vs-binance-what-is-behind-the-high-stakes-crypto-showdown/
https://economictimes.com/news/international/us/nigeria-cracks-down-on-binance-sues-cryptocurrency-exchange-for-81-5-billion-over-tax-evasion-and-economic-losses/articleshow/118426016.cms
https://www.mariblock.com/binance-vs-nigeria-the-saga-continues-with-a-billion-dollar-lawsuit-2/
https://www.emurgo.africa/blog/posts/nigerias-blockchain-plan-and-its-impact-on-5-areas-of-crypto-landscape
https://businessday.ng/news/article/nigerias-crypto-revolution-a-global-success-story/
