Nigeria Crypto Controversy: Adviser Calls for Ban Amid Exchange Allegations

A presidential adviser in Nigeria has ignited controversy by calling for an outright ban on major crypto exchanges like Binance and KuCoin from operating in the country. Bayo Onanuga, an adviser to President Bola Tinubu on information and strategy, took to the social media platform X to level serious allegations against these platforms.

The Naira-Dollar manipulators

I chanced on an X post Tuesday night by one Brother Bernard @Mikael C Bernard who railed against what he called the order of the EFCC, NSA on Finance to set a cap on traders selling USD tokens for Naira equivalent.

He disclosed that token sellers… pic.twitter.com/c9YBjawJMz

— Bayo Onanuga (@aonanuga1956) February 21, 2024

Onanuga charged cryptocurrency exchanges in a post titled “The Naira-Dollar Manipulators” of manipulating Nigeria’s fiat currency. This naira has steadily declined relative to other major currencies like the US dollar. According to him, Nigerian users who trade on these exchanges are acting in an unpatriotic manner by aiding in the depreciation of the naira through their actions.

Onanuga calls for urgent action to shut down crypto exchanges and urges EFCC and CBN intervention. He stated bluntly: “The EFCC and the CBN should move against these platforms trying to manipulate our national currency to Ground Zero. Crypto should be banned in our country, or else this bleeding of our currency will continue unabated.”

Moreover, The adviser noted that Binance, a top global crypto exchange, faces heavy regulatory scrutiny across multiple nations. He contested its authority to dictate the naira’s exchange rate against other currencies for crypto trading pairs.

Furthermore, on Feb 22nd, Binance distanced itself from the foreign exchange crisis in Nigeria. The exchange stated its platform is “market-driven and not intended to be a proxy for currency pricing in Nigeria.” It maintained its role of facilitating trading based on market forces.

Nigerian Crypto Users Face Access Issues Amidst Ban Speculation

This war of words comes amid reports that Nigerian crypto users have experienced difficulty accessing various cryptocurrency exchange websites like Binance, OctaFX and others since the evening of February 21st. This development has fueled speculation that the government may consider implementing an outright ban on crypto trading platforms.

In addition, Binance sent an email to its Nigerian users acknowledging the incident and clarifying that the problem only momentarily impacted its web platform, leaving its app operational. The exchange reassured its clients that it actively interacts with authorities to promote openness in Nigeria’s developing cryptocurrency market administration. On its P2P network, Binance set a price ceiling of 1,802 naira per Tether (USDT) to restrict cryptocurrency sales. Instead of manipulating the price peg, Binance blamed the inability to sell USDT on an automated “system pause” mechanism.

Additionally, Nigeria is the top global peer-to-peer cryptocurrency market, spurred by the 2021 CBN ban on bank-facilitated crypto transactions. Moreover, the ban on cryptocurrency services for Nigerian banks was lifted in December 2023, allowing them to resume such activities. As the situation remains fluid, the future regulatory landscape for crypto in Nigeria hangs in the balance.

Related Reading | Grayscale Bitcoin ETF Bleeding Continues: Experts Warn of Persistent Outflows