Nigeria’s Regulatory Intentions Questioned as Crypto Access Issues Arise

The crypto industry in Nigeria is facing uncertainty as the government’s actions send mixed signals to the community, according to Nathaniel Luz, co-founder and chief marketing officer of local crypto exchange Flincap. Reports have emerged of Nigerian crypto users being unable to access websites of popular exchanges like Binance and OctaFX, leading to speculation of a potential ban. Luz believes that the government is not interested in fostering a positive relationship with the crypto space. The government has blamed OTC traders for the decline in the value of the Nigerian naira, but Luz argues that the industry is not responsible for the economic downturn. He attributes the current state of the naira to factors such as excess local currency, a shortage of US dollars, heavy reliance on imports, emigration, and uncertainty surrounding Eurobond payments. While the Nigerian government lifted a crypto ban in 2023, many startups are still struggling to meet the licensing criteria, which includes a hefty paid-up capital requirement. Luz suggests that the government should focus on addressing these licensing issues instead of blaming the crypto ecosystem for foreign exchange problems. Despite the challenges, Nigeria remains the largest peer-to-peer market globally, a position it attained after the Central Bank of Nigeria banned institutions from engaging in crypto transactions in 2021.