Nigeria’s Crypto Community Criticizes Government Stance on Exchanges

Nigeria’s crypto community has slammed the recent anti-industry stance of a government that previously lifted the ban on crypto trading.

The majority of the country’s digital asset users and policy watchers have deemed the government has “misplaced priorities” adding that centralized cryptocurrency exchanges are not the cause of the falling currency.

You lot are blaming naira on binance. The reason people are buying dollar on binance, is because they don't have it available at their banks easily.
The reason the banks dont have it is because we have not got enough.

So why dont we have enough?
Well there is too much demand.…

— Sani Yusuf (@saniyusuf) February 20, 2024

In recent weeks, the naira has been in free fall due to recently introduced policies. Its value has plunged 70% to the dollar since June 2023.

This led the government to hint at a broader cryptocurrency ban, which includes centralized exchanges accusing them of market manipulation and sabotage.

Nigerians Blame Bad Policies for Plunging Naira

For most Nigerian traders, cryptocurrencies like Bitcoin and centralized exchanges are not the reason for the falling naira valuation.

Local traders blamed the current predicament on government corruption, while others pointed to policies adopted by the former administration. The former government allegedly printed an additional 50 to 60 billion naira distributed among states in 2021.

Governor Godwin Obaseki says, last month, President Buhari’s led government printed additional 50 to 60 billion Naira for states to share.

We are in big trouble guys. pic.twitter.com/xIPeHqgxFp

— Thεό Abu (@TheoAbuAgada) April 9, 2021

X user and government critic Kelvin Odanz blames the monetary policies of the ruling party, adding that they are simply “chasing shadows” with Binance.

“Buhari not only printed trillions for reckless spending, he also borrowed millions and millions from foreign lenders. Tell me why Naira won’t experience a meltdown?”

Similarly, Toyin Omotoso explained that the Nigerian government is chasing the wrong things with reports on the hard cap on USDT sales on Binance. He predicts a downtrend for the naira if the issues are not fixed.

“Naija government is busy using force to fight Naira devaluation. Why is EFCC arresting BDC merchants up and down, forcing Binance to put a hard cap on USDT sales, etc as if these will stop anything. Doing all these instead of doing the things that are dragging down to Naira to hell.”

X users also criticized the cap imposed on Binance, calling for a reversal to allow a free market. Conversely, pro-government accounts backed the moves with hopes of strengthening the naira.

Nigeria’s Harsh Crypto Strategy

This week, several government officials have blamed the naira woes on the cryptocurrency market claiming that centralized platforms are used by market manipulators.

Consequently, they took action, including arresting some currency traders, saying they didn’t have licenses. Reports stating that the government is seeking to ban exchanges by asking telecom providers to limit websites are also making media rounds.

Although the telecom ban on centralized hasn’t taken effect, users fear the aftermath of such a policy on their assets and ease of trading tokens.

Furthermore, the Presidential adviser on Information and Strategy, Bayo Onanuga, alleged the activities of crypto exchanges are sabotaging government efforts.

Ononuga called for the Economic and Financial Crime Commission (EFCC) and the Central Bank of Nigeria to move against these platforms.