Nigeria is experiencing the repercussions of actions taken against Binance executives, resulting in investors withdrawing from deals and partnerships, particularly in the web3 sector. Lucky Uwakwe, the chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN), highlighted Nigeria’s perceived lack of business safety and government hostility as the reasons behind this decline. Uwakwe, who heads Nigeria’s intercommunity working group involving Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), expressed concerns from investors.
Uwakwe mentioned that investors are worried about facing similar consequences to Binance when investing in local Web3 companies. He also noted that those who have already invested are gradually divesting. In February, Binance executives Tigran Gambaryan and Nadeem Anjarwalla visited Nigeria amidst allegations that the exchange manipulated the country’s fiat currency, the naira. Following a meeting with the Nigerian government regarding Binance’s regulatory issues, the executives were detained and faced charges related to money laundering.
Uwakwe stated that the government’s handling of the Binance case is negatively impacting the entire nation. By pursuing fines against Binance, the government is undermining the entire industry and sacrificing potential growth for short-term measures. When asked about the possibility of the Binance executives being acquitted, Uwakwe expressed skepticism. He believes that unless certain internal conditions are met by the company according to the government’s perspective, the executives have slim chances of acquittal. Uwakwe also emphasized that even if the Binance executives are acquitted by the judge, there is a strong possibility that the Nigerian government may disregard the court ruling, as observed in previous cases that were perceived to threaten the country’s stability.
Uwakwe addressed a potential question from the international community about why the Nigerian crypto community is not actively advocating for the release of the Binance executives. He suggested that if Binance had engaged with relevant associations earlier, they would have garnered support from pressure groups and lobbying efforts.
The Nigerian government has frequently clashed with cryptocurrency exchanges. Binance stopped using the naira as a result of Nigerian government criticism of crypto exchanges, specifically targeting Binance. In August 2022, Nigeria was named the most crypto-obsessed country in the world based on the number of Google searches for “cryptocurrency” or “buy crypto.”