SBM Intelligence, a risk consultancy firm focused on Africa, has issued a warning that the bribery allegations made by Binance CEO Richard Teng against Nigerian government officials could hinder the country’s foreign investment efforts.
In a statement shared with media outlets, SBM Intelligence highlighted the potential economic implications of recent events, particularly the detention of Binance officials in Nigeria. The consultancy firm believes that this sends a discouraging message to foreign investors and could undermine confidence in the country’s investment landscape.
On May 7, Teng alleged that unidentified individuals had demanded a cryptocurrency bribe from Binance executives Tigran Gambaryan and Nadeem Anjarwalla prior to their detention on February 28, 2024.
Despite the Nigerian government’s denial of these allegations, SBM Intelligence stresses the importance of conducting a thorough investigation to uncover the truth and hold any responsible officials accountable. The consultancy firm commented:
“Nigeria’s government has taken a strong stance against cryptocurrencies, which contradicts their growing popularity and acceptance among citizens. This highlights a disconnect between the views of the government and public opinion.”
SBM Intelligence suggests that individual citizens are attracted to cryptocurrencies due to the investment and transaction opportunities they offer. However, the government and its agencies view cryptocurrencies negatively because they undermine their control over financial transactions and the economy.
The firm also highlighted that it has been over two months since the Nigerian government detained two Binance executives, with one managing to escape. SBM Intelligence also noted that President Bola Tinubu has been traveling to various countries to attract investors.
However, the consultancy firm emphasized that detaining foreign business officials could pose a challenge in attracting investors to the country. SBM added:
“The ongoing narrative surrounding the arrest of the Binance executives reflects poorly on the Nigerian government. Resolving the issue promptly, fairly, and diplomatically would be beneficial for the Tinubu administration.”
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In addition, SBM Intelligence mentioned that the arrest of the Binance executives has raised concerns about the Nigerian government’s actions. It is crucial for the government to address this matter transparently and effectively in order to maintain its reputation and credibility.
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