Bitrabo Editorial
Nigeria’s love-hate relationship with cryptocurrencies continues as citizens embrace digital assets while the government remains opposed to it. The Central Bank of Nigeria has banned the use of cryptocurrency in the country, preventing citizens from carrying out crypto transactions via their bank account. The central bank justifies its decision as a move to protect the country’s financial stability, believing that these digital assets carry inflationary risks. The Deputy Governor of Economic Policy at the Nigerian central bank, Kinsley Obiora, cited concerns about the anonymity of digital currencies, which led to the ban.
However, despite the central bank’s ban, Nigeria remains one of the fastest adopters of digital assets. A survey by Statista revealed that almost half of the country’s population uses cryptocurrencies, with one in three persons actively using digital currencies. Even with the launch of its Central Bank Digital Currency (CBDC) called the eNaira, citizens still prefer to use Bitcoin, Ethereum, and USDT for their digital transactions.
An amendment to the Investments and Securities Act 2007 bill, proposed in December 2022, aims to recognize Bitcoin and cryptocurrency usage in Nigeria, signaling a change in cryptocurrency adoption in the country. This move is to ensure an efficient and vibrant capital market in Nigeria and keep up with global practices, said Babangida Ibrahim, Chairman of the House of Representatives Committee on Capital Markets.